New Survey Examines Law Firm Management Functions, Compensation
(Newtown Square, PA, March 31, 2004) – The Altman Weil Managing Partner and Executive Director Survey, 2004 Edition has just been released. The Survey, which reports on law firm management functions, priorities and compensation, finds significant variation in each area based on firm size.
Time Spent on Management
Managing Partners in firms with 100 or more attorneys spent 75% of their time on firm management in 2003, 20% on business development and 5% on practicing law, according to the Survey. In contrast, Managing Partners at firms in the 50-99-lawyer category spent 30% of their time on management, 10% on business development, and 45% on practicing law.
“Balancing the competing demands on their time continues to be one of the biggest areas of frustration for Managing Partners and Executive Directors,” notes Altman Weil Principal Tom Clay. “While most law firm leaders clearly understand the importance of maintaining a strategic focus, that goal can be undermined by a poorly designed internal management structure, an inadequate subordinate staff, or bad delegation skills.”
Key Areas of Responsibility
When asked about key areas of responsibility, all participating Managing Partners ranked firm profitability first overall, followed in order by firm organization, financial management/capitalization and strategic planning. Managing Partners in firms with 100 or more attorneys had different priorities, naming firm organization first, followed by geographic expansion, mergers/acquisitions and firm profitability, all tied for second place.
All Executive Directors ranked their key responsibilities as: facilities/equipment management first, followed by personnel management, technology and financial management/capitalization. At firms with 100+ attorneys, Executive Directors reported a different focus, naming their top four responsibilities as: firm profitability, financial management/capitalization, personnel management and technology.
Compensation
The Survey reports the median total compensation package for Managing Partners in 2003 was $356,119. The median for Managing Partners at firms with 100 or more lawyers was $700,000.
Executive Directors received total compensation worth a median $115,000 annually, while those in the 100+ attorney category received $288,000. In the largest firms, Executive Director comp fell between that of the lowest paid partner and the average partner, while in all smaller firms the administrator earned less than the lowest paid partner.
Survey Methodology
The complete 2004 edition of Altman Weil’s Managing Partner and Executive Director Survey contains data from 286 law firms, including 118 Managing Partners, 155 Executive Directors and 13 others. The survey data is analyzed by size of firm and position held. Data is reported as of November 2003.
The Survey is available from Altman Weil Publications for $350. Altman Weil Publications conducts and publishes numerous surveys of the legal profession including the Survey of Law Firm Economics, the Compensation Systems in Private Law Firms Survey, and the Retirement and Withdrawal Survey for Private Law Firms. For additional information visit the Altman Weil website at www.altmanweil.com.
