Top City law firms see partner profits surge amid transatlantic mergers

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London’s leading commercial law firms have reported sharp rises in partner earnings over the past financial year. Average profit per equity partner at major firms, including Linklaters LLP, A&O Shearman, Herbert Smith Freehills Kramer and Macfarlanes LLP, ranged from more than £1.5 million to more than £3 million during 2024/25. The upward trend was echoed at Clifford Chance, where newly filed Companies House accounts revealed the highest‑paid partner received more than £7 million.

The pay surge comes amid a wave of large-scale transatlantic mergers reshaping the upper tier of the market. In November, Ashurst LLP announced a $2.7 billion tie‑up with Seattle-based Perkins Coie. That was followed in December by the merger of Winston & Strawn London LLP with Taylor Wessing, and Hogan Lovells’ plan to unite with New York firm Cadwalader, Wickersham & Taft to create a nearly £2.7 billion practice.

Director at Major, Lindsey and Africa, Luke Woodward, said the influx of US capital had increased pressure on UK firms to remain competitive, while balancing fairness across their partnerships. The competition has extended to newly qualified lawyers, whose salaries at some firms now reach £200,000.

The London partner market shows no sign of slowing. Data from legal recruiter Edwards Gibson, reported by the Financial Times, shows London firms hired 668 partners last year, which is a 21% rise from the previous year. Competition for senior talent is expected to intensify into 2026, particularly in high-demand areas such as funds, structured finance, private capital and infrastructure.

Woodward said: “It is worth noting that some firms prioritising investment in London are shifting away from the traditional book-of-business-based pay model, instead offering a number that also factors in the strategic value of the hire itself.”