Partners in law firms are enjoying a golden age. Driven by an unprecedented and prolonged corporate finance spree, top-end international firms are plugged into a rich source of premium deals. bear this out. According to Legal Week, 15 firms in the UK bill over £100 million in fees, while profits per partner in the so-called 'magic circle' firms are edging ever closer to the £1 million mark. At Slaughter and May, still the most profitable City firm, partners reportedly averaged £870,000 in the financial year 1999-2000, while both Allen&Overy and Linklaters were close behind at around £750,000.
These are impressive figures, but the higher they go, the heavier the pressures they place on the firms' management committees. Top-end deals, from top-end banks and corporates, are the lifeblood of this market. And winning this work means heavy investment in international capability, marketing, IT and, most importantly, recruitment. Law firm economics mean that assistants have to be attracted and retained in ever greater numbers. The problem is that the recruitment market is wising up.
High starting salaries alone are no longer enough to win over an increasingly cynical pool of high-calibre conscripts.