Silver circle firm’s PEP is down 7% and NQ pay frozen as it confronts the pandemic
Ashurst has released its latest set of financial results, with partners continuing to earn in excess of £900,000 in spite of the economic uncertainty caused by the coronavirus pandemic and NQs still on £84,000.
According to figures for the year ending 30 April 2020, average profit per equity partner (PEP) at the silver circle firm fell by 7% to £903,000. The drop contrasts with the whopping PEP boost of 31% enjoyed by partners this time last year, who saw their earnings swell from £743,000 to £972,000.
The fresh financials reveal the firm’s revenue has also slightly increased by 0.5% to £644 million.
“FY20 was a year of consolidation,” commented Paul Jenkins, Ashurst’s global managing partner. “Our aim in FY20 was to sustain and build on the strong 14% revenue growth we saw in the previous financial year and it was pleasing to see that growth continue.”
He continued:
“We were on target to achieve a higher level of growth until late January when markets in Asia Pacific, in which we now generate almost 50% of our revenue, were the first to be disrupted by the pandemic. Our other markets were impacted towards the end of the financial year. We have delivered a robust performance despite these challenging market conditions.”
The fresh results come after Ashurst took steps earlier this spring to mitigate the financial impact of COVID-19. Like many outfits across the City, the firm asked some staff to work fewer hours for less pay and reduced partners’ monthly drawing by 20%.
Meanwhile, Ashurst confirmed the pay packets of its newly qualified (NQ) lawyers will remain unchanged this summer. Legal Cheek‘s Firms Most List shows NQs receive a salary of £84,000, though earnings can swell to as much as £105,000 with bonus applied.
A spokesperson for the firm said: “We always aim to attract and retain the best diverse talent. Our NQ lawyers can receive up to £105k in remuneration. We believe that this is a competitive package and we continue to monitor and review to ensure that this remains the case.”
Retuning to the world of law firm financials, magic circle duo Linklaters and Allen & Overy posted PEP figures last week of £1.61 million (down 0.7%) and £1.63 million (down 1.7%) respectively. Meanwhile, Clifford Chance confirmed yesterday that PEP was up 5% to £1.69 million.