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Allen & Overy (A&O) paid its management board 7 per cent more over 2015/16, with the group receiving £13.6m.
Management personnel comprises the firm’s senior partner and managing partner, as well as the heads of main global practice groups and support directors. Salaries and profit share rose from £12.7m to £13.6m.
The increase came amid an increase in total staff costs by £24m to £457m. The firm said the rise was attributable to headcount growth and an increased all-staff financial award for 2015/16.
Net profit fell last year from £554m to £540m, which the firm attributed to growth in fee earner headcount. Average profit per equity partner fell slightly to £1.2m.
Staff numbers rose across the business from 4,422 to 4,532, with the largest increase coming in the fee-earning group. The total number of lawyers grew by over 100 to 2,327, while support numbers grew by just three. Partner headcount decreased, however, from 527 to 523.
The highest-paid partner at A&O received slightly less in the year ending April 2016, picking up £2.8m instead of £2.9m.
A&O’s modified lockstep system stretches from 20 points to 50, with partners at the bottom end of the scale receiving profits of £745,000 and those at the top picking up £1.9m. Both sides have increased in the past year.
The firm aims to have 20 per cent female partners by 2020, along with 30 per cent of leadership positions filled by women. Its partnership is currently made up of 18 per cent of women.
A&O was the first magic circle firm to reveal its half-year results for 2016/17, posting growth of 2.5 per cent on a constant currency basis. Its turnover rose for the seventh consecutive year in 2015/16 from £1.28bn to £1.31bn – equivalent to 2 per cent.
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