Nabarro LLPs show £486k top pay figure and £750k pension recovery plan

Nabarro’s highest-paid partner took home £486,000 for the 2011-12 financial year, according to accounts recently filed with Companies House.

The figure is marginally up on the top 2010-11 figure of £484,000, after a year in which the firm also saw increases in other key metrics.

The accounts show profit for the financial year rose to £34m, up 17% on the previous year’s figure of £29m. The amount billed to clients during the 12-month period reached £113m, marginally up on the previous year’s figure of £112.5m. Nabarro last summer posted a 4.4% increase in profits per equity partner to £332,000, following a partnership review which saw 17 leave the equity.

The accounts also show that the firm, which runs a defined benefits scheme, will pay £750,000 a year to the scheme from 2012-13 to 2015-16, as part of a recovery plan to “eliminate the deficit for past service liabilities over a period of 15 years”.

According to a spokesperson, the amount the firm contributes to the scheme is reviewed every three years, and similar contributions have been made for the past six years.

The sum, which is agreed with trustees and regulators, will address a projected deficit which has been affected by the impact of lower gilt yields, according to the firm. The deficit increased by £2m from £17.5m at the start of May 2011 to £19.5m by 30 April 2012.

The accounts also show that cash at the bank and in hand across the business totalled £8.2m in 2011-12, up from £6.9m the previous year. Meanwhile, total salaries dropped from £38.9m to £37.2m, with overall staff costs falling from £46.3m to £44.3m in the same period as staff numbers shrank 3% from 724 to 701. Fee earner headcount fell 4% to 347 from 360.

The accounts also show that the firm invested £587,000 as a subsidiary undertaking during the year, the details of which were undisclosed. According to the firm, the figure represents a historical investment in one of its service companies related to a profit-related pay scheme, which has no bearing on the consolidated accounts.