DAC Beachcroft top earner pay rises 28% as senior management take home £7m
Highest paid member takes home £666,000 in last financial year
January 24, 2018 at 07:06 AM
2 minute read
DAC Beachcroft's highest paid member took home £666,000 in 2016-17 – a 28% increase on the previous year's figure of £520,000.
The insurance firm's limited liability partnership (LLP) accounts show that the increase in top earner pay came alongside a 20% hike in combined pay for senior management, who made £7.4m between them, up from £6.2m. This rise is in line with profit per equity partner (PEP) figures released by the firm last year, which showed average PEP climbing by 20.7% to £432k in 2016-17.
The accounts show fee earner numbers in 2016-17 increased by 9% to 1,515, with support staff numbers nudging up marginally to 715.
Staff salary costs grew in line with staff numbers, rising from £87.5m in 2016 to £91.3m, helping push up total staff costs from £104.7m to £110.3m for the year.
The accounts confirm the previously stated 3% rise in turnover from £201.5m to £207.1m, with profit before tax climbing from £35.3m to £38.9m. Net debt decreased by 7% from £20m to £18.6m.
Commenting on the accounts, DACB managing partner David Pollitt (pictured) said: "The numbers again reflect our continuing focus on performance improvement and remain consistent with the firm's strategic drive to create sustainable value over the longer term.
"The key financial metrics once more show further improvement with record turnover and a significant increase in both profitability and profit per member as well as a fourth consecutive year of reduction in our net debt."
Earlier this year, DACB paved the way for larger partner bonuses as part of an overhaul of its members agreement. The change saw the cap on how much of the firm's profits enter its "merit pool" removed, allowing the firm to better reward high-performing partners.
The firm also expanded its global reach, forming a four-way alliance with US, German and Australian partners named the Legalign Global. This was followed by a Latin American push through an association with Argentinian firm López Saavedra & Villarroel Abogados.
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