Addleshaw Goddard has boosted its top of equity to £1.12m, breaking its £1m target three years ahead of schedule.
The firm has 87 equity partners. The Lawyer understands managing partner John Joyce is one of a very few number of plateau partners at the firm.
Partners at the bottom of the equity ladder will now receive £295,000, up 20 per cent on £245,000 in 2014/15.
The top of equity figure also increased by approximately 20 per cent last year, up from £936,000.
Despite a boost to both ends of the equity, Addleshaws equity partners will not receive their autumn quarterly drawings until November.
The decision was made earlier this summer in order to “show solidarity” between equity and salaried partners, according to a spokesperson. Addleshaws decided in August to postpone all pay reviews until the autumn following Brexit.
A number of fixed-share partners were also told that they would not receive their bonus points this year. The message was communicated to partners in a memo from senior partner Charles Penney.
The decision is understood to have confused partners as it came shortly after Addleshaws revealed strong financial results. During 2015/16 net profit soared by 25.5 per cent to £59.1m, while turnover grew 5 per cent to £202m.
Average profit per equity partner (PEP) now stands at £680,000, up from £491,000 the previous year.
The number of equity partners at the firm continued to decrease over the last year and now stands at 87, down from 96 the year previously and 102 the year before that.
Addleshaws is currently engaged in merger talks with Virginia-headquartered Hunton & Williams. Should the talks prove successful it would give Addleshaws its first presence in the US and create a £535m firm.
Since managing partner John Joyce was elected in 2014 the firm has held merger negotiations with three firms. Addleshaws also approached Scottish firm Maclay Murray & Spens for a tie-up in November 2015 but it emerged in February the deal had fallen through.
Shortly after the Scottish merger fell through Addleshaws entered into talks with CMS Cameron McKenna. It is understood the talks collapsed after a disagreement amongst senior management over who lead the firm post merger.
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