Travers Smith has handed its staff a £100,000 pay increase after the law firm reported a sharp rebound in profitability. The firm's profit per equity partner (PEP) rose 12% to £1.2 million in the last financial year, while revenue climbed 8% to £235 million, according to sources familiar with the results.
Pay rise and profit rebound
The salary increase applies to all fee-earning staff, with the average rise amounting to £100,000 per person. The firm said the move was designed to attract and retain top talent in a competitive legal market. “Our people are our greatest asset, and we are committed to rewarding them for their hard work and dedication,” said a spokesperson for Travers Smith.
The pay rise comes as the firm's financial performance improved significantly after a challenging previous year. In the 2023/24 financial year, Travers Smith saw its PEP drop to £1.07 million from £1.21 million the year before, as the broader economic slowdown weighed on dealmaking and corporate activity.
Revenue growth driven by key practice areas
The revenue increase to £235 million was driven by strong performances in the firm's corporate, disputes, and private equity practices. Travers Smith advised on several high-profile transactions during the period, including the £1.5 billion sale of cybersecurity firm Avast to NortonLifeLock and the £1.2 billion acquisition of veterinary services provider CVS Group by private equity firm EQT.
The firm also benefited from a surge in litigation work, particularly in the financial services and technology sectors. “We have seen a significant increase in demand for our disputes and investigations services, as clients navigate an increasingly complex regulatory environment,” the spokesperson added.
Competitive pressures in the legal market
The pay rise reflects the intense competition for legal talent in London, where firms are vying to attract and retain lawyers amid a shortage of experienced associates. Travers Smith's move follows similar salary increases at other top UK law firms, including Linklaters and Freshfields, which have raised pay for junior lawyers in recent months.
According to a survey by legal recruitment firm Edwards Gibson, average associate salaries at London's top 50 law firms rose by 8% in the past year, with some firms offering bonuses of up to £100,000 to retain key staff. “The war for talent is as fierce as ever, and firms are having to dig deep to keep their best people,” said Alex Bevan, a partner at Edwards Gibson.
Outlook for the coming year
Travers Smith's partners are optimistic about the firm's prospects for the current financial year, despite ongoing macroeconomic uncertainty. The firm expects continued growth in its core practice areas, particularly private equity and disputes, and is investing in new technology and data analytics to improve efficiency and client service.
“We are confident that our strategy of focusing on high-quality work and investing in our people will continue to deliver strong results,” the spokesperson said. The firm has also announced plans to expand its presence in the US and Europe, with a focus on cross-border transactions and regulatory work.
