As first revealed by RollOnFriday, Addleshaws will freeze salary reviews for staff but will also delay its annual review of fixed profit share for salaried partners, as well as postponing the next profit distribution for equity partners. However, staff bonuses for last year’s performance, which saw the firm hit the £200m revenue mark for the first time, as well as a 38% jump in profits per equity partner (PEP) from £491,000 to £679,000, will still be paid out in September.
A spokesperson said: ‘Like many other businesses in the UK, we have seen Brexit have an impact on activity levels in the short period since the referendum. As a consequence we have decided to defer decisions on staff salary reviews and partner remuneration – usually scheduled for August – until early autumn, when we will have clarity on anticipated improvements in activity.’
Similarly Gowling WLG has also confirmed it will delay its 2016 salary review until the autumn, but added that bonus payments, for 2015/16 for those eligible were paid as usual in the July payroll and summer promotions had gone ahead as planned.
The move follows Berwin Leighton Paisner’s decision to freeze pay and bonuses until November. In June managing partner Lisa Mayhew told staff in an email the reason was ‘political and financial uncertainty in the UK following the recent vote to leave the EU.’
Earlier today it was revealed Simmons & Simmons has made lawyer cutbacks in its London office, with the firms real estate practice the worst hit. A spokesperson for Simmons refused to say how many redundancies had taken place.