City AM published an article on 4th January 2022 titled ‘London law firms hired record number of partners in 2021’. The article explores the surge in partner moves in London compared to previous years, following an economy bounce back and a rise in law firm activity. The article relates the uptick in legal recruitment and ever-increasing compensation packages to the inevitable market correction that we may witness in 2022. Figures and commentary were mentioned from Edwards Gibson’s November-December 2021 Partner Moves report:
‘A total of 473 partner moves were announced in 2021, compared with 374 in 2020, according to a report on law firm partner moves by legal recruitment consultancy Edwards Gibson.
The number of partner hires recorded in 2021 is almost 10 per cent above the ten-year-average of 433 partner moves, discounting 2016-2017 when the collapse of KWM European verein, one of the biggest law firms in London, caused a surge of moves. According to the report, the fall resulted in an artificial inflation of the data.’
‘But law firm salary wars haven’t tended to end well for associates, according to the report by Edwards Gibson. Instead, they have previously “been a portent of a market correction”.
As London braces for tighter restrictions in response to the spread of Omicron variant, the economic impact on businesses, and law firms, in 2022 is yet to be seen.’
Read the City Am article here.