Eversheds LLP’s have revealed that the firm’s average remuneration per member has dropped 10% from £410,000 to £386,000 as the firm’s staff costs have increased 16% from £150.2m to £174m.
Turnover at the firm for the financial year 2015/16 was £405.3m, up 7% from £379.4m while profit only increased by 2% from £121.9m to £124.4m.
A revenue breakdown showed the UK accounted for £340.2m of total turnover, up from £336.5m, while the rest of Europe made £37m in revenues, up from £17m the year before. Revenues from the rest of the world totalled £27.8m from £25.4m the year before.
Eversheds operating loss in the firm’s joint ventures also increased, from £455,000 to £720,000. Group operating profit before joint ventures increased by 2% from £123.7m to £126.4m.
Despite only a slight increase in profitability, the firm’s key management compensation which includes the chief executive, managing partner and members of the executive committee saw their share of the profits and salaries increase by 10% from £7m to £7.7m.
The firm’s highest paid member took home £1.4m, down 2% on last year’s figure of £1.5m.
Additionally, the number of members increased from 296 to 323, and the total number of staff increased from 2,647 to 2,963.
Last week saw Eversheds’ combination with US firm Sutherland Asbill & Brennan go live, following a partner vote in December.
Eversheds Sutherland will be led by chief executive Lee Ranson who takes over as Eversheds chief executive in May, alongside Sutherland’s managing partner Mark Wasserman on a six-person global executive team which will be overseen by a global board of ten people with equal representation from each firm.
Keith Froud, who will take over as managing partner of the UK firm in May, as well as executive partner Ian Gray, will also sit on the global executive team, along with Sutherland partners Victor Haley and Thomas Gick; however Gick will be replaced in April by Cynthia Krus.
Pursuing a US tie-up has been a high priority for Eversheds since 2014 when the partnership heavily backed the strategy through a vote. The firm held discussions with Milwaukee-based Foley & Lardner, which emerged as the preferred firm. However, these talks quickly fell through after a memo from Foley’s chair and chief executive Jay Rothman said no decision was made to pursue such an affiliation.