Dramatic results for Clifford Chance and Freshfields
03 July 2009
Clifford Chance and Freshfields have announced their results for 2008/2009. And their performance could hardly be more different.
Freshfields posted record turnover, up 9% to £1.29 billion, with average profit per equity partner (PEP) up nine grand to a massive £1.44 million. Meanwhile CC's turnover was almost identical at £1.26 billion - a fall of 5%. However its PEP crashed to just £733,000* - half that of Freshields.
Freshfields' chief exec "Big" Ted Burke was almost embarrassed at his firm's market-beating performance. Admitting that the performance had been driven by helpful exchange rates, he said that the firm was "fortunate to have come though a challenging year in relatively good shape" - something of an understatement. "Unlike those losers at CC" he absolutely did not add.
So why the difference? Well, a different mix of business and a bit of luck - but also Clifford Chance has had to pay for a massive redundancy programme, having kicked out large numbers of lawyers and a stack of partners (who don't go cheaply). But while PEP is down very substantially from last year's record wedge of £1.15 million, it is still well up on a few years ago - it stood at £651,000 in 2004/2005. In the worst recession in living memory that's not so bad.
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The World's smallest violin |
The rest of the Magic Circle has yet to announce, but if they follow
RollOnFriday's astonishingly accurate predictions** it's looking like a surprisingly good year.
And in breaking news,
Linklaters announced exceptional results on Friday morning. Turnover is up marginally to £1.298 billion, making it the biggest firm in the City. PEP fell by 9.6% to £1.302 million - a staggering sum, particularly considering that the firm has made half of its associates redundant. All of whom will no doubt be delighted with this record breaking performance...
* Please note that is "just" seven hundred and thirty three thousand pounds.** Past performance is no indication of future performance and Herbert Smith may yet tank if it carries on employing half-witted trainees.