Ashurst is the latest firm to see average profit per equity partner (PEP) crash through the £1m barrier after rising 9 per cent to £1.04m.
Earlier this year Herbert Smith also posted a PEP figure in excess of £1m for the first time, as reported by TheLawyer.com on 13 May.
As reported on TheLawyer.com, Ashurst’s turnover figure rose 17 per cent over the last financial year to hit £323m. (See story)
Managing partner Simon Bromwich said: “It has been another good 12 months for us – if you compound this year’s growth with the year before, both PEP and revenue growth is phenomenal.”
Over two years, PEP at Ashurst has increased by more than 50 per cent after posting a rise of 36 per cent to £956,000 in the 2006-07 financial year.
Its PEP performance this year puts the firm on a similar footing to firms such as Allen & Overy (with a PEP of £1.12m) and Weil Gotshal & Manges (PEP of £1.05m), which make up the bottom of the Sweet Sixteen firms of the transatlantic elite (as reported 7 July).
Ashurst’s equity spread sees partners at the bottom of the lockstep take home a profit share of £560,000 while plateau partners will pocket £1.46m. Last year the figures were £480,000 to £1.2m.
The firm recently carried out a review of its lockstep that shortened the equity ladder to nine years to reward high-performing partners and improve advancement for junior partners (as reported 31 March).
The total number of Ashurst partners has increased from 179 to 217 after this year’s partnership promotions round (1 April).