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The average pay of law firm partners has reached £241k, an increase of 8.5% in a year, Hazlewoods has found.
According to the accountancy firm, the average taxable profit per partner has been steadily increasing from £187k in 2015/16 to reach a record high £241k in 2019/20.
This increase has been attributed to firms being in demand across areas such as M&A and property during the post Covid-19 lockdown months.
That trend also continued until interest rates began to rise in late 2021 and early 2022.
Ian Johnson, partner at Hazlewoods, said: “Leading up to 2020, law firm partners were taking home record earnings. Whilst some industry sectors ground to a halt during the pandemic, law firms saw demand shift to different practice areas.
“As the UK continues to grapple with the prospect of a recession and deal-making remains sluggish following 2021’s boom period, we could expect to see profit growth in some areas level off.”
He added: “However, areas that typically perform well in a downturn, such as restructuring and insolvency, could make up for that to some extent. That may sustain partner pay at a high level.”
