The American Lawyer released their annual Global 100 report, a ranking of the world’s 100 largest law firms by gross revenue, profits per partner, and total attorney headcount. Overall, gross revenue grew by 2.8 percent for The Global 100, and profits per partner increased, on average, by 0.5 percent. Attorney headcount also saw an increase this year, with an annual growth of 2.7 percent.
American firms accounted for 81 of the world’s top-grossing firms, matching a record set in last year’s survey, the report revealed. The remaining places are filled by 12 British firms, three from Canada, two from China, one from Australia and one from South Korea. According to the report, this is the second time in the history of Am Law’s global rankings that U.S.-based firms occupy the top five spots.
Latham & Watkins reigns in at No. 1 again this year, with the highest gross revenue of The Global 100. Baker & McKenzie retained the No. 2 spot, leading the top 5 in terms of total attorney headcount with 4,719 attorneys. Kirkland & Ellis advanced two spots to No. 3 this year, thanks to a 15% increase in gross revenue and 14% jump in profits per partner. Skadden Arps remained in its respective spot from last year, coming in at number 4. DLA Piper, on the other hand, dropped two places this year to claim the No. 5 spot, after a 3% decrease in total revenue.
See the full rankings and highlights from The Global 100 on The American Lawyer.
Contact Bill Sugarman for more information.
The American Lawyer released their annual Global 100 report, ranking the top law firms across the world. The report is based on gross revenue as well as number of attorneys and profits per partner. Attorney headcount saw an increase this year, with an annual growth of 6.4 percent. Overall, gross revenue grew by 3.1 percent for The Global 100, and profits per partner increased, on average, by 4.9 percent.
Latham & Watkins reigned in at No. 1 again this year, with the highest gross revenue of The Global 100. Close behind leader Latham was Baker & McKenzie and DLA Piper in spots 2 and 3, respectively. Skadden also remained in its respective spot from last year, coming in at number 4, with a higher revenue per lawyer average than each of the other top 5 firms. Kirkland advanced one spot to No. 5 this year, knocking Dentons down to number 6.
See the full rankings and more of the highlights from the AmLaw Global 100 on The American Lawyer.
Contact Bill Sugarman for more information.
According to Am Law Daily, mixed opinions were exchanged last week at the International Bar Association’s annual conference, regarding the risks and benefits of law firms’ global development. Lawyers traded their thoughts during a panel discussion on Wednesday. “We were forced by our clients,” to expand abroad, said Antonio Barba, a partner with the Spanish law firm Cuatrecasas, Goncalves Pereira.
Peter Pantaleo, general counsel at DLA Piper, said, “I can guarantee any law firm in this room can make a small fortune going abroad, if they’re prepared to lose a large one.” Pantaleo explained the risks, alluding to DLA Piper’s office in Singapore and the losses it faced in an effort to open its doors. DLA also recently closed their office in Venezuela because of the political risk at hand. Other firms, such as Fried, Frank, Harris, Shriver & Jacobson, are facing the same problems. The firm planned on expanding to Hong Kong and Shanghai last year but pulled out because of global setbacks they’re facing.
The most substantial risk for law firms that are expanding globally is the clash of cultures in different countries, according to the American Lawyer. “Clients are deeply turned off when they walk into a room in Bogota and see me sitting there,” said Elliott Portnoy, Denton’s CEO, who is based in Washington.
On the other hand, the American Lawyer points out, there are definite benefits to a firm’s global expansion. Pantaleo went on to explain that the Swiss verein model works well for DLA Piper and other firms. The structure allows offices to work more independently while protecting each country’s revenue. The partners don’t have to worry about foreign tax policies, and the model makes it easier to adjust compensation and staffing.
View the full article from the Am Law Daily on the American Lawyer.
Contact Bill Sugarman, a legal recruiter, for more information.
The American Lawyer just released the results of the most recent Am Law 100, their annual financial report of the top 100 U.S. law firms. Overall, the data revealed only slight increases for the firms overall, with the average profits per partner increasing 4 percent since 2014 and the total net income up by 3.3 percent. Latham & Watkins claimed the number one slot for gross revenue for the second year in the row, with an impressive $2.65 billion over the last-place contender’s $332 million (Kramer Levin). The ever-growing Polsinelli tied with Locke Lord for the biggest change in their Am Law 100 rankings, each increasing by twelve spots from the previous year. And predictably, major big law firms Latham, Greenberg Traurig, Mayer Brown, and Reed Smith worked their attorneys to the bone to claim the most billable hours in 2015, with DLA Piper leading the pack at over 5.5 million hours–an astonishing 2 million-plus hours over the second-place Latham.
See more of the highlights from the 2016 Am Law 100 on The American Lawyer.
Contact Bill Sugarman for more information.
Seeming to defy the laws of supply and demand, hourly billing rates at national corporate law firms have increased 3 to 4 percent per year since the recession, according to Citi Private Bank’s Law Firm Group (The Wall Street Journal). In fact, they report, these rates have continued to rise in spite of weak demand and low inflation.
A recent study of bankruptcy cases revealed that “senior partners routinely charge between $1,200 and $1,300 an hour, with top rates at several large law firms exceeding $1,400” (The Wall Street Journal). Legal consultant Bruce MacEwen observes that “you have a very few people at the very top where price is almost no object,” allowing for the best-of-the-best lawyers to charge an astounding $1,800-plus hourly rate (as quoted in The Wall Street Journal).
While demand for legal services has only risen 0.5% in the past year, revenue has risen by 4%, according to Wells Fargo Private Bank’s Legal Speciality Group. Heightened rates help to increase this revenue, and are consistently raised to soften the blow of client-demanded discounts, an increasingly common practice. By implementing an annual rate increase, says an Altman Weil legal consultant, law firms are able to offset clients’ requests for discounts (The Wall Street Journal).
John Altorelli, finance lawyer at DLA Piper, laments that “we just raise them every year,” referring to the hourly rate system as “anachronistic” (as quoted in The Wall Street Journal). However, many firms contend that raising rates are a way to “guarantee salaries or ensure a partner’s pay doesn’t fall, even in the down years,” allowing them to attract and keep the top talent (The Wall Street Journal).
Still, argues legal consultant Bruce MacEwen,”if clients are pushing back on rates, the answer isn’t to raise them, and then ask for a discount…the answer is to provide a better total value” (WSJ).
Read more and see the top law firm billers at the Wall Street Journal.
Fifteen Southern California firms have just been featured by The National Law Journal as demonstrating “excellence in practice areas critical to the Southern California economy and legal community.”
Loeb & Loeb received the top honors in the Entertainment industry. Nossaman was crowned the winner for Government Contracts, and global giant DLA Piper took the Real Estate category. Morgan, Lewis, & Bockius won for Litigation.
Read the profiles of the winners and finalists here.