Of all the law firms that boasted a growth in average PEP this year, Pinsent Masons posted the highest with a 70 per cent rise to £400,000, up from £234,000.

Turnover was also on the rise, up by £22m, or 15 per cent, to £172m.

Managing partner David Ryan and his management team appear to be starting to squeeze additional profit out of the firm now that the 2004 merger of Pinsent Curtis Biddle and Masons is bedded in. The firm's profit margin rose from 19 per cent to 26 per cent last year, while the merger costs, estimated at £3m, have been absorbed.

The firm has lost a number of partners since the merger, which could actually be beneficial on PEP. Pinsents and Masons had a combined 131 equity partners in 2003. The merged firm now has 113. While that is not a great change, the departure of senior partners and their replacement with junior partners could add as much as £25,000 per partner.

A new sector focus scheme has replaced the legacy chosen markets strategy and multidisciplinary teams have been set up to exploit cross-selling opportunities.

With international relations partner Tony Bunch working on a series of possible European alliances for the firm, and having won places on the Vodafone, Nestlé and BT panels, Pinsents is in a good position to build on its merged foundations in the months to come.

The increase in profitability last year boosted the value of an equity point from £9,250 to £13,250. Pinsents operates a lightly modified lockstep, which starts at 20 points and ends at 40 points.

Every three years the remuneration committee meets to review where partners are on the lockstep, depending on performance criteria.

At the moment the 10-year equity lockstep is weighted for younger partners. Three points are accrued each year for the first three years, then two points a year for the next four years. Finally, partners get one point a year for the last three years on the ladder.