In FY22, PEP was recorded at £1.95 million, and it dropped slightly in FY23 to £1.82 million. The firm’s profit before tax remains at £892 million. Client revenue grew by £138 million, which the firm said was driven by “opportunities arising from global macro trends, including navigating the energy transition, technological transformation, and the private capital industry”.

The exchange rate, as of the time of filing this story, was $1.92 to £1 – although the financial results are from FY23, which ended on 30 April.

Commenting on the results, global senior partner Wim Dejonghe said the firm’s proposed merger with Shearman & Sterling, as reported by Lawyers Weekly in May, would create a unique global law firm offering to support clients in navigating an increasingly complex legal, regulatory, and geopolitical environment.

“Our diversified business continued to show client revenue growth over the past 12 months, despite intensifying headwinds. Like the rest of the sector, we were impacted by the global economic slowdown, inflationary pressure and geopolitical turmoil,” he said.

“Over the past year, we’ve focused on long-term growth with the addition of new partners around the world. We are well positioned to capitalise on the opportunities presented by the energy transition, technology transformation, and the private capital industry.

“Our proposed merger with Shearman & Sterling sets out an exciting future for both our people and our clients, with a uniquely strong combination of local depth, connected by global reach. Our clients are telling us that they are looking forward to the prospect of working with A&O Shearman. They recognise the value that our two firms coming together will deliver for them – an unrivalled ability to help them unlock growth opportunities and manage complex challenges with consistently high quality, wherever they are in the world.”

In FY23, 42 per cent of partner promotions at the firm were women – increasing the proportion of women in the partnership globally to 25 per cent, up from 18 per cent in 2019.

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The firm also has a science-based target to reduce its carbon footprint by 50 per cent by 2030 against a 2019 baseline. According to A&O, the key to reducing its emissions is measurement, so for the first time, this year, it will report its global emissions through the Carbon Disclosure Project (CDP), a scheme trusted by more than 10,000 participants globally.

Gareth Price, global managing partner, has also resigned from A&O after 30 years for personal reasons.

“I want to express our gratitude for Gareth’s stellar contribution to A&O over the last 30 years – starting out as a trainee, becoming one of our youngest partners in 2003 and being elected managing partner in 2020,” Mr Dejonghe said.

“He led our market-leading energy and infrastructure practice for many years, and as managing partner, steered us through the pandemic and played a pivotal role in the negotiations with Shearman & Sterling that set us up for success in the future.”

Additionally, the firm noted that hours invested in pro bono and community investment work have increased by 56 per cent over the past two years. A&O delivered nearly 78,000 hours in support of access to justice, social finance, education and employment around the world. A&O partners also contributed £3.9 million to charitable funds during the year, including £2.4 million via the Allen & Overy Foundation, which provides grants to non-profit organisations around the world.

Further, A&O was the only law firm in the world – and one of the few firms of any sort – that rolled out GPT-4 across its entire business. Harvey, the generative AI tool, is now used by 3,500 of its lawyers and business teams, across 43 countries, in their day-to-day work.