updated on 24 July 2023
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Magic circle firm Allen & Overy LLP retained 37 of its 40 trainees, revealing a 93% autumn retention rate – all 40 of the firm’s trainees applied for newly-qualified (NQ) solicitor roles, with 37 offers being made and accepted.
The firm, which has around 90 training contracts spots each year, also offers hefty annual salaries. First-year trainees receive £50,000, which is bumped to £55,000 in their second year and, on qualification, the firm’s NQ solicitors earn £125,000.
Reflecting on “another strong retention rate”, James Partridge, the firm’s graduate recruitment partner and training principal, said that it demonstrates the “strength” of Allen & Overy’s talent pipeline and its commitment to developing its people “and investing in the future of the firm”.
The firm also reported a spring retention rate of 87%, having retained 34 out of 39 trainees.
Meanwhile, the City giant also reported that its law firm profit margins were “under pressure” given the ongoing “inflationary environment”, according to Wim Dejonghe, global senior partner. The firm says that its pre-tax profits dipped slightly to £892 million for the year ending 30 April, down from £900 million for the same period last year. It reported that the average profit per equity partner fell by 7% to £1.82 million after partner numbers increased to 590.
However, Dejonghe also said: “Our diversified business continued to show client revenue growth over the past 12 months, despite intensifying headwinds.”
The firm’s revenue increased by 7% over the past year to £2.1 billion.
This news comes ahead of the firm’s merger with Shearman & Sterling LLP.