Senior management at Allen & Overy (A&O) increased their earnings by almost 50% last year against a 10% increase in profits per equity partner, according to the firm's annual report.

A&O's financial report for 2009-10 shows that the key management personnel earned £14.2m over the year, a 43% increase on the 2009 figure of £9.9m.

The group includes managing partner Wim Dejonghe, senior partner David Morley, as well as the heads of the main global practice groups and the support directors.

The magic circle firm posted a 3.8% drop in turnover for the year to £1.05bn, while PEP rose by 10% to £1.1m. Net profits at the firm fell marginally from £430.9m in 2008-09 to £428.8m.

A&O said that the increase in management remuneration was largely due to the increase in the firm's profitability, rather than a change in the size of the senior management group. Equity partners see a year-on-year increase in equity points while directors' bonuses are also tied to the firm's profitability. The firm added that some retirement provisions were also included in the £14.2m sum.

The results came on the back of an 8% decrease in the average number of partners from 490 to 451, while the average number of full equity partners fell from 372 to 355. The average number of lawyers employed at the firm fell by 9%, while average support staff headcount fell by 10%.

The financial report also shows that partner cash injections into the business during the last financial year more than doubled from £15.9m to to £34.9m. The firm said that the increase was a result of an increase in new partners, as every new equity partner is required to make an investment related to their number of equity points.

The statement further highlights the cost-saving benefits of A&O's global restructuring, which despite costing the firm a total of £44m, led to an overall saving of £47.1m between the 2008-09 and 2009-10 financial years.