Addleshaw Goddard has pledged to increase its top of equity to £1m by 2019, after its highest paid partner received £936,000 last year, according to LLP accounts.
The account filings also show revenue soared to its highest level since 2008 as turnover rose 12 per cent from £167.2m to £186.9m.
The firm’s slimmed down global partnership also received an increased payout last year as the accounts reveal profit divisible among partners increased 18 per cent up to £57.3m.
A spokesperson at Addleshaws said the profit growth was in part due to increased efficiencies as a result of a “partnership restructuring exercise”, which led to a number of partners leaving the firm. In August 2012 consultation talks ended in 24 fee-earners being made redundant in the firm’s second round of cuts in just over a year.
Internal promotions and a number of lateral hires mean the firm still has 160 partners – the same number as before the partner cuts.
Staffing costs at Addleshaws increased by 11.5 per cent from £57m to £63.6m. The costs are part of measures to reward staff through larger bonuses and salaries.
Managing partner John Joyce introduced the bonus scheme across the business following his election in May 2014. In previous years the firm’s bonus system was set up in such a way that Addleshaws rarely reached a profit level needed to allow a firmwide bonus to be dispensed.
The new structure means that funds are ring-fenced each year for the bonus regardless of the firm’s performance and are distributed depending on each individual’s performance. Speaking to The Lawyer in June Joyce said that the review to the bonus structure was carried out as part of an attempt to improve morale at the firm.
Addleshaws also achieved a positive net cash position last year for the first time since 2009 due to the strong results and an increased emphasis on reducing the firm’s cash collection times. At the time of the LLP accounts the firm had £1.5m in the bank.
The firm also negotiated an £18m rolling credit facility, which will run until 30 September 2019.