Addleshaws blames Brexit for suspending partner pay reviews
LAW firm Addleshaw Goddard has confirmed that it is to ‘defer’ making a decision on staff and partner pay rises until the autumn.
The annual staff salary and partner remuneration review usually takes place in August.
The firm, which employs 433 staff in Manchester, has blamed Brexit and its immediate impact on activity levels on the decision to delay but says it expects to see improvements by November.
A spokesperson at Addleshaw Goddard said: “Like many other businesses in the UK we have seen Brexit have an impact on activity levels in the short period since the referendum.”
The spokesperson added: “Regardless of the impact of Brexit we will, as planned, be paying bonuses to staff in September for last year’s strong performance.”
Last month the firm warned that EU uncertainty was affecting transaction volumes and meant growth would be ‘a challenge’ for 2017.
It saw annual fee income grow 5% to £202m for the year ended 30 April 2016, while distributable profits increased by more than 20% to just over £71m and profits per equity partner (PEP) increased 38% from £491,000 to £679,000.
Two years ago the firm set out a plan to improve business focus, performance and returns and managing partner John Joyce said in July that it was making good progress, underpinned by some strong returns from its transactional and international teams.
He added: “There will now inevitably be an extended period of uncertainty as a result of the EU referendum and other macro-economic issues.
“We have seen that reflected in confidence and transactional activity since the start of this year and are thankful that a lot of the measures we have taken over the last two years leave the firm not only in an incredibly strong position but also very well positioned with an improved platform, client portfolio and sector focus. Delivering sales growth is a key imperative for us this year but will clearly be a challenge.”
