SJ Berwin's PEP plummets 50 per cent
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Average profits per equity partner (PEP) at SJ Berwin halved during the last financial year, dropping from £801,000 at the end of 2007-08 to £410,000.
Jonathan Blake
Turnover at the firm decreased by 14 per cent over the course of the year, down from £215m to £184m.
SJ Berwin managing partner Jonathan Blake said: “The firm’s been exposed dramatically to the downturn having had a focus on M&A, private equity and real estate.
“We still have faith in these practice areas and believe workflows will return.”
SJ Berwin has recently moved away from its traditional European focus, expanding into Asia and the Middle East.
Earlier this year The Lawyer reported that SJ Berwin planned to launch in Dubai, relocating London-based litigation partner Tim Taylor and Paris-based Benjamin Aller to the new office (6 April 2009).
News of the Dubai launch came just weeks after the firm launched in Hong Kong, with consultant Daniel Liew taking up the post of Asia managing partner.
SJ Berwin also made staff cuts during the last financial year, with 50 jobs cut following a redundancy consultation in January.
Readers' comments (10)
Anonymous | 29-Jul-2009 11:52 am
That's awful.
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Anonymous | 29-Jul-2009 2:21 pm
Isn't there an expression somewhere about putting all of your eggs in one basket?
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Anonymous | 29-Jul-2009 3:40 pm
It couldn't have happened to a nicer bunch. I'm delighted by the news.
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Anonymous | 29-Jul-2009 5:56 pm
Some of these comments strike me as a little harsh - other groups of partners have been pilloried by commentators for maintaining PEP whilst firing their employees. Presumably that route was open to SJB's partners, but they decided to take the hit rather than cut more staff (or keep on less trainees).
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a | 30-Jul-2009 10:18 am
I wonder which planet you must be on if you think SJB partners give a fig about their staff. They fired 50 fee earners, did they not. That is not low for a firm the size of SJ Berwin.
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City Gent | 30-Jul-2009 4:54 pm
The launch in Dubai was a brilliantly timed move - not!
Dubai, which was always a dump, is now in economic meltdown, and the "sunny place full of shady people" is now losing said shady people as rats leave a sinking ship.
(For the avoidance of doubt I don't include SJB or any other members of our noble profession amongst the said shady people.)
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Anonymous | 31-Jul-2009 4:51 am
You are a cynical lot. It's a tough market full stop.
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Anonymous | 31-Jul-2009 10:04 am
And its not like they've kept on a lot of trainees. The market is tough, but they've made it tougher on themselves by restricting their practice areas.
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Anonymous | 31-Jul-2009 3:12 pm
"They fired 50 fee earners, did they not."
No, they didn't. They made 20 fee-earners and 20 support staff redundant.
Around the same time they closed their film finance team (10 jobs including secretarial staff).
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Anonymous | 8-Aug-2009 4:59 pm
Dear Lawyers,
Dubai, Hong Kong = tax free part of the world. If SJB are now reporting profits in these offices, it is highly unlikely that they would be shown on European balance sheet (i.e. read as not available for the likes of the Lawyer to read in the LLP accounts).
They are still doing fine, I am sure. Their lease is probably tied to turnover rent, so it is wise to decrease the London profits (= lower rent), add this figure to Dubai (= no tax and therefore hugely increased profit), report in papers a staggering drop (= happy and gullible ex-employees are now happy, less legal suits), no bonuses to pay out, therefore higher profits (= employees cannot complain).
Well done SJB, you are becoming wiser with everyday!
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