Clifford Chance Predicts 30 Percent Plunge in Profit Per Partner
In an internal memo, Clifford Chance has warned partners that they can expect revenue to plunge significantly in the current financial year.
Although global managing partner David Childs declined to confirm exact figures, partners are bracing for roller-coaster ride in which their take-home pay could plummet by 30 percent, reports the Lawyer.
That means so-called plateau partners at the top of the salary scale for the the London-based megafirm can expect to earn a mere 900,000 pounds ($1.3 million) or so this year, compared to 1.32 million pounds (not quite $2 million) last year.
“The last time plateau partners earned less than £1m was in the 2005-06 financial year, when the equity spread ran from £370,000 to £920,000 and average profit per equity partner (PEP) stood at £810,000,” the British legal publication recounts.
Related coverage:
ABAJournal.com: “Clifford Chance Plans to Ax Up to 80 Associates, Asks Partners to Ante Up”
The Lawyer: “CC’s London layoffs set off dot com bomb”
