City leaders tough on promotions but expansive band powers forward
Partner promotions across the top 10 City firms fell by 10% over the last financial year, according to Legal Week research which suggests law firms are already tightening their belts in preparation for a downturn.The group made up 207 partners in total compared with 231 in 2007, even though across the top 50 as a whole new partner promotions are marginally up on 2007.
May 22, 2008 at 12:23 AM
3 minute read
Partner promotions across the top 10 City firms fell by 10% over the last financial year, according to Legal Week research which suggests law firms are already tightening their belts in preparation for a downturn.
The group made up 207 partners in total compared with 231 in 2007, even though across the top 50 as a whole new partner promotions are marginally up on 2007.
The total number of associates promoted across the 47 top 50 firms to have announced their new partner promotions this year stands at 585 – a slight increase on last year's figure of 581.
The marginal increase is helped by a number of firms, including Bird & Bird and Olswang making up record numbers of new partners, with 14 and 10 respectively. However, many leading firms reported a dip in the number of associates making the grade this year.
At Linklaters new partner numbers fell from 38 last year to 28 this year, while promotions at Lovells fell from last year's record tally of 31 to 18. Similarly, SJ Berwin's new partner promotions halved from 16 in 2007 to eight this year.
Bird & Bird managing partner David Kerr told Legal Week: "Despite mostly strong results this year so far, the number of partner promotions is down for a lot of firms. In a period of escalating cost bases, tightening the equity is clearly a trend and you need to have had quite exceptional growth this year to be making drastic increases in partner promotions."
The number of partners across the top 50 stood at 9,995 on 1 May, 2008, with firms promoting the equivalent of 6.1% of their partnership on average, with this figure decreasing to 5.8% for the top 10 City firms.
The figures show that despite the promotions, many firms have been pruning their partnerships over the year. On average partnerships grew by 6.9%, with this figure inflated by firms such as Olswang and Field Fisher Waterhouse, which grew their partnerships by 22.9% and 18.8% respectively.
Many firms saw only limited growth in partnership size, with Linklaters and Nabarro remaining static, while at Freshfields Bruckhaus Deringer numbers dipped by just over 1%.
With the notable exception of Slaughter and May, which is one of the few remaining firms to operate a pure equity structure, the majority of new partners are set to join salaried tiers. And, with the future of the economy uncertain, partners are predicting that the bar to reach equity ranks will be raised.
Simmons & Simmons senior partner David Dickinson (pictured above) said: "The ability to meet the criteria to get promotion into equity – in most cases showing significant business generation – gets far harder in declining markets. The use of the non-equity band is now pretty universal as firms continue to boost partner profits and counteract differentials in profitability across offices and practice areas."
Denton Wilde Sapte chief executive Howard Morris said: "It depends on how deep the downturn is. Law firms will want to preserve profit levels and while profits per equity partner remains a common measurement for success, some firms may be reluctant to make partners part of the equity."
Click on the link below for a full breakdown of partner promotions at the UK's top 50 law firms.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All![X Ordered to Release Data by German Court Amid Election Interference Concerns X Ordered to Release Data by German Court Amid Election Interference Concerns](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/international-edition/contrib/content/uploads/sites/392/2023/10/AdobeStock_627004176_Editorial_Use_Only-767x633.jpg)
X Ordered to Release Data by German Court Amid Election Interference Concerns
![Quinn Emanuel's Hamburg Managing Partner and Four-Lawyer Team Jump to Willkie Farr Quinn Emanuel's Hamburg Managing Partner and Four-Lawyer Team Jump to Willkie Farr](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/fa/c2/5b8749a84b7eb919caed3ca3d306/quinn-emanuel-urquhart-sullivan-office-sign-washington-13-767x633.jpg)
Quinn Emanuel's Hamburg Managing Partner and Four-Lawyer Team Jump to Willkie Farr
![Trump ICC Sanctions Condemned as ‘Brazen Attack’ on International Law Trump ICC Sanctions Condemned as ‘Brazen Attack’ on International Law](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/international-edition/contrib/content/uploads/sites/392/2023/11/Trump-Donald-White-House-2019-029-767x633-1.jpg)
Trump ICC Sanctions Condemned as ‘Brazen Attack’ on International Law
![U.S.- China Trade War: Lawyers Label WTO Dispute Pointless, Clients Have Their Hands Tied U.S.- China Trade War: Lawyers Label WTO Dispute Pointless, Clients Have Their Hands Tied](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/ea/56/920bdb1d42d59b3af46660326473/us-china-flags-767x633.jpg)
U.S.- China Trade War: Lawyers Label WTO Dispute Pointless, Clients Have Their Hands Tied
Trending Stories
- 1Judge Rules Georgia Railroad Can Seize Land as Landowners Vow to Fight
- 2On the Move and After Hours: Einhorn Barbarito; Gibbons; Greenbaum Rowe; Pro Bono Partnership
- 3On The Move: Squire Patton Boggs, Akerman Among Four Firms Adding Atlanta Partners
- 4Is the Collateral Order Doctrine About to Have a 'Brat Summer'?
- 5Trump Administration Faces Lawsuit Over USAID Stop-Work Orders
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250