Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    0
    ReputationRep:
    Hi everyone, quick question.

    (Don't know if this should be here or Legal Careers forum?)

    When you research a firm and look at something like Lawyer2b, Lex100 whatever.. and it says "Profits per equity partnet: £1,500,000" or something like that... I may sound totally oblivious but is this how much like the partner makes themselves, i.e income... or how much profit that partner's department has made..?

    If so, taking this into account, how much would a partner get (income wise) at a firm such as Clifford, A&O, Slaughter etc...

    Thank youuu!
    Offline

    15
    ReputationRep:
    (Original post by matt1291)
    Hi everyone, quick question.

    (Don't know if this should be here or Legal Careers forum?)

    When you research a firm and look at something like Lawyer2b, Lex100 whatever.. and it says "Profits per equity partnet: £1,500,000" or something like that... I may sound totally oblivious but is this how much like the partner makes themselves, i.e income... or how much profit that partner's department has made..?

    If so, taking this into account, how much would a partner get (income wise) at a firm such as Clifford, A&O, Slaughter etc...

    Thank youuu!
    It's the overall profits (i.e. fee income minus outgoings like staff salary) divided by the number of equity partners. They won't take all of that home because law firms keep a reserve but substantially the profits will then be shared among the partners based on how senior they are (typically done by how long they've been at the firm). At Freshfields for example the range of salary of equity partners will be something like 400,000 for the lowest ranked equity partner up to 2 million for the highest (this is an estimate)

    Example - My firm has a turnover of 100 million and there are 50 partners. We paid 80 million in costs for staff and offices etc. so there is 20 million profit. PEP is therefore 400,000. In practise we'll keep some back as a reserve but basically the average take-home income of equity partners will be not much less than 400,000
    Offline

    11
    ReputationRep:
    West Wing is correct. One thing to add - these are the amounts for equity partners. Law firms (especially the large ones) typically have a substantial number of salaried partners who don't get to share in the equity of the business but take home (you guessed it) a salary. So, don't think that 8 or 9 years after qualifying at Freshies you're going to make partner and be sitting on 500K. Salaried partners will be on far less and it's not uncommon for a newly made up salaried partner to find they're on not much more than when they were a SA (and obliged to make their own pension contributions now they're no longer an employee!).

    This article from earlier in the year gives you an idea of the drive by many firms to increase the number of salaried, rather than equity, partners.

    http://www.legalweek.com/legal-week/...quity-tightens
    Online

    20
    ReputationRep:
    (Original post by The West Wing)
    Example - My firm has a turnover of 100 million and there are 50 partners. We paid 80 million in costs for staff and offices etc. so there is 20 million profit. PEP is therefore 400,000. In practise we'll keep some back as a reserve but basically the average take-home income of equity partners will be not much less than 400,000
    Unfortunately, at my firm we pay Income Tax and self-employed National Insurance contributions as well!
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Did TEF Bronze Award affect your UCAS choices?
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.