Herbert Smith sees PEP return to 2006-07 levels as turnover nudges up By Margaret Taylor 25 June 2012 15:12 17 December 2015 12:52 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 26 June 2012 at 12:27 That’s pretty lame given over half of their partnership is now non-equity. Guess that means their real profit per partner is £420,000, which is faaaaaarrrrrrrr behind their peer firms. Or what used to be their peer firms! Reply Link A closer look at the numbers 26 June 2012 at 13:01 Revenues up 3%. Profits down 6%. Internet surfing by London corporate partners up 50%. Partner satisfaction with Jonathon Scott and David Willis down 75%. Number of litigation partners who will be demanding more corporate heads on the chopping block up 100%! Reply Link D Willis 26 June 2012 at 13:26 Now now. Let’s not get all snarky. This decline in profitability is all a part of the master plan. We’re going to address the issue by bringing more partners into the ranks of management, writing numerous papers, hiring an outside consultant, opening more offices in far flung regions and socialising the issue so as to not damage our collegial culture. We’re calling it Project Wishful Thinking. Reply Link Scotty 26 June 2012 at 13:33 Bloody good idea Willis! Let’s make sure to raise it at the next GPM. Reply Link Herbies Partner 26 June 2012 at 13:51 Right now I wish I was a partner at Linklaters. Sigh. Reply Link Scotty 26 June 2012 at 14:22 Oh sure. Report on our profits being down 6%. You missed the real story, which is that our collegiliality is up 6%! Reply Link Herbies Partner 26 June 2012 at 14:39 I should have voted for Tim Parkes for senior partner. What was I thinking?!? Reply Link Who writes this stuff? 26 June 2012 at 14:53 Partnership at Herbert Smith £840,000. Reading these comments, priceless! Reply Link Anonymous 26 June 2012 at 15:00 I hope Freehills got a due diligence out in the merger agreement! Reply Link FPC 26 June 2012 at 15:09 I suppose this means the minimum track from non-equity to equity will now be extended again from four years to five years. Reply Link Anonymous 26 June 2012 at 15:22 Wow. PEP down almost 20% from when David Gold was at the helm. Bring back the Gold Standard! Reply Link read it and weep 26 June 2012 at 15:25 Scotty did you even read the article? profits are down 7% not 6% Reply Link Anonymous 26 June 2012 at 15:55 Kudos to the partners of Herbert Smith! This shows a real sense of social responsibility with the Herbert Smith partners taking a 7% pay cut and sharing some of the pain with all of the associates and support staff who have been made redundent. Partners at lesser firms would never be so willing to take this kind of pay cut. Good for you noble Herbies! Reply Link Magic Man 26 June 2012 at 16:01 How long before they drop out of the silver circle? Reply Link Chippy 26 June 2012 at 17:30 This ridiculous castigation of a firm at the top of the Bronze Medallion group is pathetic. Grow up. All of you. Reply Link Anonymous 26 June 2012 at 21:48 To the first comment at 12:27 pm. I think is rather the other way around. Same profit divided into less equity partners gives a higher PEP. Reply Link Anonymous 27 June 2012 at 00:04 Some of the commentary here is a bit hysterical. Herbert Smith is still one of the finest litigation shops in the world, with an excellent corporate and finance practice. The fact that its got the results it has, with such a poor deal environment (which effects everyone) shows the strength of its disputes group. Everyone needs to settle down and stop making irresponsible comments. Reply Link MW 28 June 2012 at 12:36 Hysterical. But true nonetheless. Reply Link first post is correct 28 June 2012 at 16:54 The first post at 12:27 am is correct. If half of the firm partnership is non-equity then the real “profit per partner” is roughly half of their reported PEP – which is “profit per equity partner”. One half of their reported profit per equity partner of £840,000 equals a profit per partner of £420,000. Firms use non-equity partners to hide the real profitability of the partnership as a whole. Reply Link Corporate sloth 3 July 2012 at 00:16 For goodness sake you are all obsessed with profit and PEP levels. Are you capitalist robots? What happened to your real interests before you sacrificed them for the tedium of commercial law? Reply Link Mind the Gap 3 July 2012 at 15:16 Not surprised to see profits at the Magic Circle firms increasing by 13% Clifford Chance and 7% Allen & Overy when Herbies is declining. Indeed the gap is widening. Reply Link Herbies Insider 3 July 2012 at 15:24 Anyone who wasn’t obessed with profit and PEP levels was made redundent by David Willis. Reply Link anon 3 July 2012 at 15:36 Have they announced how many redundencies will be made after the merger with Freehills? Or will the next round of redundencies be “performance related” ETLs. Reply Link curious 3 July 2012 at 15:40 What is ETLs? Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.