Richard Clare reveals earnings after consultant increases pre-tax profit 50% to £25m in first year as LLP
Richard Clare, chairman of EC Harris, this week revealed that he earned £531,000 in the year to April 2005.
This is the first time that details of his earnings, which represent a share in the firm's profits, have been published. The disclosure is required by the rules for limited liability partnerships.
EC Harris' results, which gave its first full-year trading as an LLP, showed it made a pre-tax profit of £25m. This was up more than 50% compared with the year before. Turnover rose 13% to £164m.
The average profit share paid out to partners with a stake in the business was £120,000.
EC Harris was the first QS to become a limited liability partnership, back in November 2003.
Clare's earnings are less than the £751,000 received by Peter Sanders, the managing partner of Gardiner & Theobald, but more than the £507,000 earned by Rob Smith, who runs Davis Langdon, the biggest UK quantity surveyor.
Clare said that EC Harris was run as a "meritocracy", in which those who achieved their targets received the biggest rewards.
Clare said EC Harris' pre-tax profit did not include a one-off benefit after more partners took a stake in the business and their former salaries were no longer included as a cost. This was accounted for in last year's results.
Although it was a traditional partnership, EC Harris had 40 equity partners and 115 salaried partners. Of the salaried partners, 108 took a stake in the LLP, which means that almost 150 members of staff have a financial stake in the company.
Clare described the increase in partner stakes as "psychologically important". The biggest single amount invested in the company was £300,000.
He said of the results: "They incorporate a significant investment, in particular our software business. We've been adding substantial costs in the year, but we're now seeing payback, particularly in our new industrial and energy sectors."
Clare identified the USA as an area where the company would seek to grow, having opened an office in Manhattan, New York, at the end of last year.