Compared to The Am Law 100, the financial gains posted by Second Hundred firms in 2010 were anemic. While the nation’s 100 highest-grossing firms rebounded from a disastrous 2009 by posting healthy gains in 2010–a 4 percent increase in gross revenue, a 4.4 percent rise in revenue per lawyer, and an 8.4 percent pop in profits per partner–gains at the Second Hundred were less robust. The Second Hundred’s total gross revenue rose 2.2 percent, to $17.46 billion in 2010 from $17.08 billion in 2009, while average revenue per lawyer increased just 1.5 percent, to $579,749 from $570,999. Average profits per partner rose 3.4 percent, to $665,665 from $643,580
The Am Law 100 2010 — Gross Revenue: Baker & McKenzie Tops Skadden
For the first Time since 1994, Baker & McKenzie surpassed Skadden, Arps, Slate, Meagher & Flom for the number one position on our gross revenue chart. As was the case last year, Baker and Skadden are the only two firms to gross more than $2 billion.
Eleven other firms had gross revenue exceeding $1 billion. Among them is K&L Gates which moved into this group for the first time. The year’s biggest increase in gross revenue–22.6 percent—was posted by Cozen O’ Connor. The biggest decline was Howrey‘s 16.2 percent drop, although that firm’s 2008 gross revenue had included a contingency award.
It could have been worse. That,s the best that can be said for the performance last year of The Am Law 100, the top-grossing law firms in the nation. Three of the four key categories we,ve measured for 25 years–gross revenue, head count, and revenue per lawyer–fell, while profits per equity partner (PPP) barely increased by 0.3 percent, or $3,463, to $1.26 million.
But on average, even the bad results weren’t nearly as dire as many firms had feared just a year ago.
The downward trend continued for Am Law 100 firms in 2009 as more than half posted drops in revenue per lawyer (RPL), our best measure of a firm,s financial health.
Sixteen Am law 100 firms had profits per partner (PPP) of $2 million or more in 2009, the same number as in 2008.
The average pay for a firm’s entire partnership, both equity and nonequity; in 2009, 42 Am Law 100 firms posted declines in CAP.
Value Per Lawyer ranks firms by how efficiently they generate profits. For the fifth year in a row, Wachtell, Lipton, Rosen & Katz tops our list.
via The Am Law 100 2010.
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