Highest ever figure touted for secretive elite firm
Elite law firm Slaughter and May is famously tight-lipped about its partners’ earnings.
Still, that hasn’t stopped journalists from speculating. The latest estimate comes courtesy of the Financial Times — and if anyone’s in a position to make an educated guess, it’s them, right?
In an article exploring whether the MC player can withstand growing competition from US firms in the City, the FT estimates profit per equity partner (PEP) to be “pushing” £4 million.
The newspaper doesn’t say how it comes to that figure but does reference revenue and profit figures produced by The Lawyer.
This £4 million sum is particularly noteworthy as it appears to be the highest estimate published to date. Legal Cheek and The Times estimate the firm’s PEP at around £3.5 million, while last year, Law.com placed it closer to £2.5 million.
The FT explains that the firm avoids disclosing partner pay by choosing to operate as a general partnership rather than the more common limited liability partnership (LLP)
But Slaughters isn’t the only elite law firm trying to keep its finances on the down low.
Last summer, Freshfields announced it would no longer share a detailed breakdown of its financial performance — including PEP — with journalists, though some figures remain accessible through Companies House. Instead, the firm claimed the “real sign” of its progress lies in the “quality” of its business and “client mandates”.
Among the rest of the Magic Circle, Clifford Chance reported a PEP of £2.04 million earlier this year, while Allen & Overy recorded £2.2 million ahead of its merger with Shearman & Sterling. Meanwhile, Linklaters posted a PEP of £1.9 million.
While Slaughter and May may seem to lead the Magic Circle in partner profits, it’s important to note that partners at elite US firms in London can command even larger sums. The Legal Cheek Firms Most List shows PEP at Kirkland & Ellis comes in at a staggering £6.1 million, while their counterparts at Paul Weiss earn an equally impressive £5.1 million.