Top Firm Boosts Associate Bonuses, Throws in Extra Day Off

LONDON - Allen & Overy (A&O) has awarded all associates and staff an extra holiday day while also announcing this year's associate bonus levels.

The bonuses, which will be paid out in November, will see senior associates take home in the range of £29,500-60,000 (average £39,500), up from a range of £26,500-50,000 (average £32,000) last year, as reported by RollOnFriday.

Associates with three years of post-qualification experience (PQE) will also see higher bonuses with a range of £14,500-30,000 (average £19,800) compared to £13,000-25,000 (average £16,000) last year.

Bonuses for associates with two years' PQE will remain static at £7,500, while a newly-qualified (NQ) solicitor's bonus rate changed from £2,000 last year to £5,000 this year.

A&O said the relatively high rates came in light of improved profitability at the firm in the last financial year. However the firm added that it is still dependent on a performance review.

A&O boosted profit per equity partner (PEP) by 10% to £1.1m from £1m in the 2009-10 financial year, in part on the back of a 5% decrease in average equity partner numbers.

Turnover at the City firm fell by 4% to £1.05bn over the financial year, having stood at £1.09bn the previous year.

Commenting on the increased bonus rate, a spokesperson said: "A&O improved profitability this year and this is sharing that success with the associates. The bonus is merit-based and tied to a performance review."

A&O said it had awarded the extra day's holiday as a gesture of gratitude to the associates and staff for their hard work and dedication over the past 18 months.