British law firm becomes world's highest earner

Feng Shui consultants, a staff gym and dress-down Fridays might give the impression of cuddliness but the slice of corporate steel that runs through Clifford Chance has made it the highest-earning law firm on the planet.

Figures released yesterday show revenue generated in the past year by the London-based firm totalled £938m.

Clifford Chance, which traces its history back to 1802 when a 20-year-old lawyer opened a business in Pudding Lane, was already the largest corporate law firm in the world after a merger last year. It joined forces with New York's Rogers & Wells and Frankfurt-based Puender, Volhard, Weber & Axster, to create a firm of 7,300 staff, including, 3,500 legal advisers and 665 partners, based in 29 offices in 19 countries.

The law profession, despite its renowned fondness for the traditions and practices of the past, is as affected by globalisation as any other industry, and analysts believe that, in 20 years time, there will be much fewer but much bigger practices.

Clifford Chance, like the other so-called "Magic Circle" of Britain's leading law companies, wants as big a slice of the global market as possible. It has a reputation for wanting to be first with everything and yesterday's figures were the largest revenue figure ever posted in the legal sector.

Not surprisingly, the firm was bullish. Chief executive Michael Bray said it was "extraordinary" that results had exceeded the £853m revenue target. "The results have exceeded expectations and are proof positive that the calculated, first-mover risk we took in going global is paying off.

The global operation that makes up Clifford Chance was created from another merger, when Coward Chance – the firm that grew out of the Pudding Lane venture – joined with Clifford Turner in 1987.

Despite the revolution going on in the City at the time, the legal profession remained conservative: marketing and overseas expansion were not thought fitting for lawyers.

But the new firm saw things differently, and industry insiders say its internal culture remains more aggressive than competitors. "It has a reputation for being, not quite wide-boyish, but more posh and more pushy than other law firms, who might be more old school and only employ a certain type of person," said one.

It is a culture of hard work and high rewards. New recruits join on a salary of £42,000, but, after eight years or so of "insane hours", they can expect to make partner level, when they will collect a £340,000 salary. From there on, the rewards steadily increase to an average of £721,000, according to yesterday's figures, and an ultimate limit of £855,000.

Staff are also treated to a marble-clad swimming pool beneath their offices in London Wall, though apparently the driven culture means most are too worried about being away from their desks to use it.

The firm's determination to be first has extended to its fashion sense and location. Earlier last year, it adopted dress-down Fridays, with chairman Keith Clark reportedly seen in a black corduroy jacket and combat trousers. It is also the first corporate law firm which will move to Canary Wharf, in London's Docklands, where Feng Shui expert Sarah Shurety worked with architects on the 32-storey tower due to open in 2003. Describing her role last year, she said she had to "get the energy flowing in the right direction".

If energy can be measured in pound signs, yesterday's results suggest Ms Shurety may be on the right lines.