Image courtesy of American Lawyer
Summary: This week, The American Lawyer released its annual list, Am Law 100.
The American Lawyer released its list of financial metrics for the Am Law 100, its top ranked law firms, and the publication said, “growth was the slowest in years.” The list was first introduced in 1987, and the metrics are used by law firms to determine their standing in the marketplace.
The top-grossing firm, Latham & Watkins, had revenue that moved 1.45 percent. Its global chairman William Vogue told The American Lawyer that firm performances mirrored their peers.
“I’m not surprised by the slower growth in revenues,” Vogue said. “The U.S. economy had less growth in 2015 than was expected, as things slowed down toward the end of 2015, and Europe and Asia were already slow.”
The next top grossing firm on the list was DLA Piper, whose revenue inched up by 2.52 percent last year. The American Lawyer said Latham & Watkins and DLA Piper both earned more than $2.5 billion in revenue in 2015.
According to ABA Journal, five firms cracked over $2 billion in revenue. Besides Latham & Watkins and DLA Piper, Baker & McKenzie; Skadden, Arps, Slate, Meagher & Flom; and Kirkland & Ellis join this elite party.
Kim Kleman, editor-in-chief of The American Lawyer, said that while growth seems “so-so,” some firms excelled in 2015.
“Despite the so-so picture overall, several firms had a stunning year,” said Kleman. “For example, Wachtell, Lipton, Rosen & Katz set a new record for profits per equity partner with $6.6 million. But our findings raise questions about the long-term growth prospects at Big Law firms.”
The publication found that average revenue per lawyer was $894,253. Average profits per equity partner was $1,613,439.
ABA Journal reported that the firm with the largest revenue drop was Hughes Hubbard & Reed.
Arnold & Porter, Hunton & Williams, K&L Gates, Littler, and Quinn Emmanuel also experienced noticeable decreases.
Source: The American Lawyer