Law firm Allen and Overy is rewarding 400 lawyers with a shared pay pool of £420 million.

According to financial accounts for the year ended 30 April 2011, the pay pool will see almost 400 partners awarded £1 million each, in a profit-sharing arrangement.

On becoming a partner at the Allen and Overy, remuneration is predominantly a fixed prior share of profits. Thereafter most partners, referred to as full partners, receive 20 profit-sharing points, rising by two points every year to a maximum of 50 points.

For instance, the profit distribution will range from £642,000 for a partner with 20 profit-sharing points to £1,604,000 for a partner with 50 profit-sharing points.

The highest-paid partner, excluding retirement payments, and payments for tax equalisation and expatriate arrangements, will receive £1,604,000.

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