Mayer Brown's Rising Staff Costs Wipe Out Profit Gains, International LLP Accounts Show
The firm's staff costs went up 11% while its average profit per member only grew by 0.4% in the year ended in April 2019.
January 24, 2020 at 06:29 AM
2 minute read
Mayer Brown's international LLP turnover grew by 7%.
Partner profit growth at Mayer Brown's U.K. and Japanese offices was hit by rising staff costs in the financial year to April 2019, according to the firm's latest accounts.
Limited liability partnership (LLP) accounts for the entity that comprises the offices showed that staff costs went up 11% from £33.2 million to £37 million in the year ended in April 2019.
The Companies House filing details that the surge in staff costs was driven by a rise in wages and salaries for its 351 employees.
This meant that despite the firm's U.K. and Japan turnover climbing 7% to £111.7 million, the entity's operating profits grew by 4% to £40.4 million and its average profit per member grew by only 0.4%. On average, partners took home £488,108.
The average number of members increase from 80 to 82 over the year.
The highest paid partner took home over £1.7 million, up 11% on the previous year.
The accounts did not break down the turnover and profits by region.
Last year, the firm promoted three of its London lawyers to the partnership. It also hired former DLA Piper restructuring duo Michael Fiddy and Amy Jacks. The firm opened an office in Tokyo in late 2017.
Mayer Brown was unable to provide a comment in time for publication.
Rising staff costs have been a theme across the U.K. legal market over the last 12 months since Freshfields Bruckhaus Deringer started a pay war by boosting its newly-qualified (NQ) pay to £100,000, which many other firms followed.
On Friday, Reed Smith unveiled a measure providing bonuses of up to £60,000 to its City lawyers billing over 2,000 hours.
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