London law firm Clyde & Co today said its partners will see their pay packages drop by sums of £7,000 after the addition of 44 new partners diluted its profit-per-equity-partner ratios.
Clyde & Co’s 480 partners will see their payouts drop from sums of £715,000 last year to £708,000 for the financial year 2022, the law firm said in its annual results.
The law firm’s lower profit-per-equity-partner (PEP) payouts came after Clyde & Co’s overall profits jumped four per cent to £159m, in an increase that marks the firm’s 24th year of consecutive growth.
First set up as a shipping and insurance law firm in early 20th century, Clyde & Co has expanded significantly over the previous two decades to become one of the City of London’s major firms.
Clyde & Co’s higher profits came on the back of a 2.6 per cent uptick in the law firm’s revenues that saw it post total sales of £650m for the year ending on 30 April 2022.
Clyde & Co chief executive, Matthew Kelsall, said: “Our results over the past year speak of a firm in good health and show the benefits of our well hedged business.”
“Growing for the 24th year in a row is a huge testament to the continuing strength of our business model and professional management structure not to mention the reputation we have as leaders in our core sectors.”
Clyde & Co’s PEP payouts have increased 29 per cent over the previous decade, on the back of a doubling of the firm’s revenues over the same period of time.
The past decade’s 29 per cent uptick in Clyde & Co’s PEP payout rates comes as the firm has, over the same period of time, bolstered its partner numbers by 90 per cent.