Linklaters' capital repayments fall 75% in 2013-14 as top earner takes home £2.4m
Linklaters' capital repayments to partners fell by 75% during the last financial year, with the firm paying back £12m less during 2013-14 than the previous year, when payouts increased as a result of the firm's controversial 2012 partner restructuring.
December 02, 2014 at 06:50 PM
2 minute read
Linklaters' capital repayments to partners fell by 75% during the last financial year, with the firm paying out £12m less during 2013-14 than the previous year, when payouts increased as a result of the firm's controversial 2012 partner restructuring.
Limited liability partnership (LLP) accounts recently filed with Companies House, show that in the 2012-13 financial year net capital returned to Linklaters' members totalled £17.1m, but this dropped to £4.5m during the last financial year – a fall of nearly 75%.
The firm said the "majority of the difference" was due to its partnership shake-up in 2012, the second under managing partner Simon Davies, which saw the exit of some 25 partners.
According to the accounts, capital is normally repaid to members within six months of them ceasing to be partners, leading to a spike in repayments in 2012-13, with the figure now returning to normal.
The filings, which show turnover for the LLP rose from £1.19bn to £1.25bn during the last year with operating profit climbing from £371m to £394.6m, also demonstrate the impact of exchange rate fluctuations on results. The firm says it lost almost £12.2m due to the impact of exchange rate fluctuations on its foreign operations. This compares with a gain of £4.8m in 2012-13.
According to the accounts, the revenue growth came on the back of significant demand from "banks and financial services clients with contentious and non-contentious regulatory enforcement work, litigation and arbitration being particularly active."
A full sector breakdown was not disclosed because the members "believe it would be prejudicial to the firm."
Total lawyer headcount at Linklaters crept up from 2,290 to 2,325, with total staff costs in 2013-14 standing at £597.2m compared with £565.8m the previous year.
Remuneration for the highest paid LLP member stood at £2.4m – slightly up on the 2012-13 equivalent, and almost £700,000 higher than the top of the firm's equity ladder (£1.758m).
On becoming equity partners, most Linklaters lawyers start at between seven and 10 equity points, with their entitlement standardly increasing by 1.5 points per year to a maximum of 25, the accounts detail.
Other figures contained within the accounts include a £2m reduction in the firm's pension scheme deficit from £6.8m at the end of the 2012-13 financial year.
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