Silver circle participant’s accomplice income up 10% to £1.91 million

Macfarlanes’ London workplace

Macfarlanes is about cut back the salaries of its newly certified (NQ) legal professionals by £5,000 because it confirmed 22 of its 25 final-seat trainees have accepted everlasting roles on the agency.

The silver circle participant confirmed new associates will obtain a “provisional” base wage of £80,000, a lower of £5,000 (or 6%) from £85,000, pending a wage evaluate to be carried out this autumn. Particular person and firm-wide bonuses can be paid out as typical.

Individually, Macfarlanes introduced an autumn retention rating of 88% (22 out of 25). None are being retained on fixed-term contracts.

“We have now not modified our coverage as a result of coronavirus state of affairs and we’re happy to have been in a position to keep our persistently excessive retention charges for our trainees qualifying this September,” Seán Lavin, head of graduate recruitment at Macfarlanes, commented. “We see our trainees as the following technology of companions and we recruit, practice and retain them with a watch to the agency’s long-term future.”

Legal Cheek reported in June that the single-office-outfit will now offer 33 TC spots a 12 months, up from a earlier determine of 31, in response to the expansion of the agency.

Information of the wage lower and newest retention end result coincides with the discharge of the agency’s 2019-20 monetary outcomes. It recorded a 10% uplift in its revenue per fairness accomplice (PEP) determine to £1.91 million, whereas turnover rose 9.5% to £237.7 million. Working revenue grew 13.8% to £126 million.

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In a press release the agency mentioned:

“This was a workforce end result and we wish to thank our wonderful individuals for being so adaptable all year long, however significantly on the again finish, throughout COVID. Their onerous work produced a very good end result general. We’re predicting a difficult 12 months forward however we face the long run alongside our purchasers with confidence.”

Final month fellow silver circle member Ashurst revealed PEP had fallen 7% to £903,000 following what the agency described as a “12 months of consolidation”, whereas Herbert Smith Freehills reported final week that accomplice income had tumbled by almost 10% to £857,000. Travers Smith, in the meantime, recorded a 20% drop in PEP to “roughly £1 million” for the 12 months ending 30 June 2020.