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Clifford Chance equity partner profits up 10%, exceed £2m
Global law firm Clifford Chance has released its financial year 2022 results, with the profit generated per equity partner in excess of £2 million (or approximately $3.5 million) for the first time.
Jerome Doraisamy
Clifford Chance has unveiled its financial results for the year ending 30 April 2022, with global managing partner Charles Adams saying that the firm has “delivered another outstanding year of results”.
Partnership profit was £783 million ($1.36 billion), up 9 per cent year-on-year, and profit per equity partner (PEP) was up 10 per cent year-on-year to £2.04 million ($3.55 million).
“The combination of robust revenues, prudent cost management and increased emphasis on financial and commercial discipline, resulted in the firm ending FY22 with £376 million in cash and no net borrowings,” the firm proclaimed.
The news follows the release of FY22 results by Allen & Overy, which saw PEP hit $3.42 million, Herbert Smith Freehills, which recorded close to $2 billion in revenue, and Pinsent Masons, which saw a PEP increase of 16 per cent.
Mr Adams: “We are seeing the positive outcome of our long-term strategic focus to diversify our client base, continually increase our market share and grow in priority geographies such as the Americas. These results are a testament to Matthew Layton’s leadership as the previous global managing partner, as well as the energy, dedication, teamwork and phenomenal expertise of all our colleagues. It is because of this that, profit per equity partner increased by 10 per cent year on year to in excess of £2 million.
“Clients are at the heart of everything we do. To serve them better, we continue to prioritise our relationships with them and the delivery of our balanced combination of expertise and our increasingly global focus. Despite geopolitical uncertainty and signs of a slowdown in some markets, all our regions grew in income and net profit.”
The past year has also seen the firm close its Moscow office and cease operations in Russia, transferring Russian work to a new, locally established independent law firm; promote its highest-ever percentage of women to partnership (at 41 per cent); and exceed its 5 per cent target for LGBT partners in the UK, three years ahead of schedule.
Mr Adams said that the firm continues to “keep our intensified focus on securing strong foundations for our future success; understanding what clients will need from us and what type of firm we will need to be”.
“Our strong and diverse bench of talented leaders, both long-serving and recent appointments, will play a critical role in executing the firm’s strategy and ensuring Clifford Chance remains the firm of choice for world-leading businesses of today and tomorrow,” he submitted.
“In the new reality, we have all become accustomed to uncertainty, so we are vigilant in staying close to our clients, listening to our people and being prepared for the unknown.
“As we observe the evolving geopolitics in a number of regions, the appalling Russian military aggression in Ukraine, as well as the global economic headwinds linked with the impact of inflation and supply chain fragility, it is critical we remain agile and ready to embrace change as well as act when needed.”
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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