Mid-Sized Firms Surge in Per-Lawyer Revenue in 2000, According to Leading Survey
Newtown Square, PA, July 23, 2001 — The just-released 2001 Altman Weil Survey of Law Firm Economics reports that U. S. law firms showed increases in average net profits per lawyer, increased lawyer compensation and increased hourly billing rates in 2000. Firms in the 76-150 lawyer category showed the most dramatic changes.
The Survey of Law Firm Economics is published annually by Altman Weil Publications, Inc., a subsidiary of Altman Weil, a global legal management consultancy headquartered in Pennsylvania. The Survey focuses on law firm revenues and expenses, leverage, billable hours, overhead, margin, billing rates, compensation and more. It lets law firms compare performance data with peer firms in similar size, geographic and practice categories.
Survey Highlights
For all Survey firms, average 2000 gross receipts/lawyer increased by 6.7%. Average total expenses per lawyer were up 4.1%, and the increase in average net income per lawyer was 8.8%. The variations among Survey categories however, were substantial.
Mid-sized firms with 76-150 attorneys scored significant gains, with gross receipts per lawyer up 14.4% and net income per lawyer up 16.7% in 2000.
Total compensation (salary and bonus) was up across the board, for equity and non-equity partners, associates and paralegal staff. The median total compensation/lawyer for equity partners in all firms rose 5.3% in 2000 to $225,918/lawyer. Associates saw median total compensation rise nationally by 6.1% to $96,824/lawyer. Associates in the South Atlantic region topped the salary charts with median compensation of $108,377/lawyer.
Starting salaries for law school graduates continued to climb, up 16.7% nationally in 2000. Those increases were most notable in small to mid-sized firms, with 21-40 lawyer firms increasing median starting salaries by 19.7% in 2000, 41-75 lawyer firms up by 8% and 76-150 lawyer firms up 13.4%. Large firms with over 150 lawyers reported a more modest 4.9% increase over 1999.
Other Survey Details
Among all survey participants:
- Standard median hourly billing rates increased 6.8% for equity partners/shareholders, 5% for non-equity partners, and 3.3% for associates.
- Median billable hours were virtually unchanged from 1999, with variations of less than one half of one percent in all categories.
- The ratio of associate leverage decreased from .71 to .69 after increases in the two previous years. Paralegal leverage increased slightly from .27 to .28.
Survey Available in CD-ROM; Participation Continues to Climb
The Survey, published annually since 1972 by Altman Weil Publications, Inc., international consultants to the legal profession, is considered by the legal industry as the standard reference for law firm management, with up-to-date information on lawyer compensation, law firm expenses, revenues, and more. The 2001 Survey is available on CD-ROM or in printed version, offering increased flexibility to purchasers.
Participation has increased in the Survey for the fourth consecutive year, including increased participation by large law firms. Almost 20,000 lawyers and 5,833 paralegals from 399 U. S. law firms participated in this year’s survey, including 10,289 partners/shareholders, 8,878 associates and 819 active counsel.
The Survey may be purchased for $725 from Altman Weil Publications, Inc. The 2001 Altman Weil Small Law Firm Economics Survey, which contains data from participating firms with one to twelve lawyers, is available for $395.
Orders for Altman Weil Survey reports and other Altman Weil Publications, may be placed by calling 1-888-782-7297 toll free, by faxing a purchase order letter to (610) 359-0467, or may be ordered from the Altman Weil website at http://www.altmanweil.com.
