Freshfields bosses see pay bump despite smaller profits pool

The firm’s management team took home more despite profits available for division among members shrinking by almost a quarter

Freshfields bosses see pay bump despite smaller profits pool
The senior partner, managing partners and heads of global practice groups of Freshfields Bruckhaus Deringer took home more profits in fiscal year 2015-16 despite a large contraction of the firm’s profits available for division among members.

According to a report from Legal Week, the Magic Circle firm’s limited liability partnership accounts  for the 12 months ending 30 April show that the management team was paid £18.1m, or about $29.4m,  up 8% from the previous comparable period when the team was paid £16.8m, or about $27.3m.

The pay bump comes even though the partnership saw a hefty drop in its operating profit, which shrank by nearly 25% to £393.1m, or about $637.9m for the year. This is down from £514m, or about $834.1m, in the 2014-15 fiscal year. Revenue, however, increased from £1.279bn, or about $2.076bn, to £1.285bn, or about $2.085bn, according to the publication.

Meanwhile, a report from Legal Business also noted that the LLP accounts for the 2015-16 year now reveal topline to be lower by £40m, or about $64.9m, than when reported by the firm in July.

According to the Magic Circle firm, currency exchange headwinds can account for the difference. The exchange rate used for the yearly report is the prevailing rate at the end of the year, while the average rate for the whole year is used in the LLP accounts, the firm said.

Meanwhile, there seems to be a trimming of the workforce at Freshfields. Legal Business said that the average number of members decreased by ten to 324. The number of fee-earning staff also decreased by 5% to 2,511 from 2,640, while the secretarial staff was slashed by eight to 2,111. However, staff costs increased by 4% to £584.5m, or about $948.56m.

Related stories:
Local offices not right for African expansion says Freshfields partner
Here are the firms confirmed involved in VW’s US$4.3b settlement

Recent articles & video

Minters vet jumps to Piper Alderman

Maurice Blackburn leads class action against car giants Hyundai and Kia over fire hazard models

Ninety-two percent of in-house counsel expect law firm partners to use the latest tech: survey

New digital + innovation practice group established at Law Squared

Australian government continues to seek inputs on proposed federal judicial commission

Growth of alternative legal services providers is accelerating

Most Read Articles

K&L Gates nabs HWL Ebsworth team

W+K expands Adelaide office with six new lawyers

Canadian legaltech firm signs up seasoned vet for Australian debut

Western Australia district court welcomes new judge Mark Ritter