Herbert Smith Freehills PEP Jumps 11% as Revenues Pick Up
The firm's PEP is edging closer to £1m.
July 04, 2019 at 07:24 AM
3 minute read
Herbert Smith Freehills' (HSF) profit per equity partner (PEP) has increased by 11%, marking the second year of double-digit growth in the figure at the firm.
PEP now stands at £949,000 ($1.2 million) at the Anglo-Australian outfit, which has also boosted its global revenue by 4% to hit £965.7 million ($1.2 billion). It has been a better year for the firm, which last year posted revenue growth of less than 1%.
HSF CEO Mark Rigotti also said the point value of the firm's lockstep pay system increased by 15% during the last year. Meanwhile, the firm's total profit grew by 11% to reach £306.7 million ($384 million).
Rigotti told Law.com's Legal Week that "there's a momentum and confidence in the firm that feels refreshed and powerful."
The firm's corporate practice grew its revenue by 15%, while its finance practice bolstered its turnover by 9%, according to Rigotti.
He added that the firm now aims to broaden its current offering across Europe and China, investing in further bandwidth across its offices. There are no current plans to open new bases in those areas.
The firm's New York office also performed well, according to Rigotti.
"Our New York office is doing well – it's a strong business now with the right support around it," he said. "We'll keep sensibly growing that."
HSF financial director Steve Bowers added that renewed efforts in service delivery and investment had also benefited the firm's bottom line.
"A lot of it boils down to client delivery and prioritising where we are spending money. We've made decisions regarding lateral partner hires that have really paid off. In the U.S., we've invested in further space and are introducing our legal service delivery function to help support that office," he said. "We're also investing in our IT and data security systems to increase our resilience, to make sure we have the right level of assurance to give ourselves and our clients."
Rigotti also highlighted the firm's push to ensure a positive working culture, which last year saw it overhaul its associate pay structure to better reward individual performance and not just seniority level.
Earlier this year, the firm also reset its partner gender target. It is now targeting a partnership comprising 35 percent women in both partner and partner leadership roles by May 1, 2023.
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