Allen & Overy’s (A&O) staff and partners all saw their remuneration rise last year with staff bonuses across the firm rising by 21.6 per cent, the firm’s LLP accounts have revealed.
The accounts show that the firm’s highest-earning partner last year received £2.89m, up 36.9 per cent from £2.11m in 2013/14. This was some 62 per cent higher than the top of equity, £1.78m. A&O said elements such as compensation costs, joining or retirement benefits could boost partners’ profits above the 50-point plateau level.
Last year the firm also introduced a performance-related bonus pool for high-performing partners, in a bid to increase its competitiveness.
Meanwhile the firm’s key management personnel, including managing partner Wim Dejonghe and senior partner David Morley, shared out a total of £12.7m in profits in 2014/15 – up 9.5 per cent from £11.6m in 2013/14.
Total staff costs increased by £9m last year, which A&O said reflected the impact of pay awards on 1 May 2014 and increases in staff bonuses.
In July 2015 the firm rolled bonuses into associate pay packets, giving associates between one and three years’ post-qualification experience around £20,000 more in base salaries – but this change was not reflected in the 2014/15 LLP accounts.
As previously announced by the firm in July last year, revenue increased by just under 4 per cent to £1.28bn from £1.21bn in 2013/14, with net profit up 8.6 per cent to £553.9m from £510.2m.
The LLP accounts reveal that A&O and its partners paid over £280m in tax last year, including £239m of tax on profit, £32m of employers’ social security contributions and £7m of property taxes. In addition it collected another £171m of taxes on behalf of the governments of the jurisdictions in which it works, through payroll deductions and VAT paid by clients.