Freshfields management pay up to £18m as profits drop 24%

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Freshfields Bruckhaus Deringer’s management board and global practice heads took home a combined £18.1m in 2015/16, up £1.3m on the year previously.

The magic circle firm’s LLP accounts, released today (3 February), also demonstrate total revenue for the year was £1.285m, up slightly on £1.279m in 2014/15.

However net profit was down 24 per cent to £389.2m, while profit available for discretionary division among members dropped almost 25 per cent to £361.7m.

Profits attributable to the LLP (Freshfields’ operations outside of the US, Hong Kong and Singapore) also dropped 25 per cent to £357.1m.

At the same time staff costs were up 4 per cent to £584.5m.

The average number of members dropped by 10 last year to 324 partners.

Real estate obligations also increased in 2015/16, with total obligations under operating leases up from £5.2m to £6.4m. This was impacted by Freshfields taking out a permanent lease for around £2.6m in Manchester’s One New Bailey, where its legal services and back office hub is headquartered.

As a result of shifting approximately 300 roles to Manchester Freshfields will downsize in London when its Fleet Street lease expires in 2021. It is understood to be leasing a space in 100 Bishopsgate for its new City headquarters.

The firm’s provision for current and retired partners’ pensions climbed above the £1bn mark last year, to £1.084bn. The increase was due to an increase in the provision for already-retired partners, from £509.4m to £619m.

Freshfields remains in a strong cash position. It recorded £96m net cash as of the end of 2015/16, compared to £85m the year before.

The post Freshfields management pay up to £18m as profits drop 24% appeared first on The Lawyer | Legal News and Jobs | Advancing the business of law.



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