| ALM’S NATIONAL LAW JOURNAL SURVEY SHOWS MAJOR DROP IN FY 2009 STAFFING RATIOS AS LAW FIRMS SEEK TO CUT COSTS |
NEW YORK (August 9, 2010) – The National Law Journal’s Survey of Law Firm Economics, 2010 Edition reveals that, in an effort to lower costs, participating U.S. law firms cut staffing ratios for associates, paralegals and support staff to one of the lowest levels seen since the 1980’s. The average ratio of associates to partners decreased 8.2 percent, the average ratio of paralegals to all lawyers dropped 15.4 percent and the average ratio of support staff to all lawyers decreased 9.3 percent. The National Law Journal will publish a special section on the key results of the survey in its August 30 issue and on its website at www.nlj.com.
The survey, based on 2009 data, was conducted by ALM Legal Intelligence and reports on annual financial performance; compensation; billing rates and hours; and other data, related primarily to small and mid-sized law firms (2 – 150 lawyers.)
Among the survey’s other findings:
• Revenue per lawyer decreased 0.2 percent from $413,086 to $412,220
• Expense per lawyer decreased 4.6 percent from $167,256 to $159,521
• Average billing rates for senior partners increased 3.2 percent from $346 to $357, while the average 5th year associate billing rate for increased 0.5 percent from $218 to $219
• Average billable hours for senior partners decreased 1.7 percent from 1,656 to 1,628, while average billable hours for 5th year Associates increased 0.6 percent from 1,801 to 1,811
• Median total compensation for senior partners decreased 1.7 percent from $328,260 to $322,813
• For the third year in a row, starting salaries for new graduates remained unchanged at $85,000
“This year’s Survey of Law Firm Economics shows just how deeply the recession has affected smaller and midsized law firms around the country. For the first time ever, we’re seeing year-over-year declines in revenue per lawyer, expenses per lawyer, and compensation for senior
partners,” said David Brown, editor in chief of The National Law Journal.
The National Law Journal’s Survey of Law Firm Economics is one of the most complete set of economic statistics and financial data available about the legal profession. This year’s survey contains information from 10,913 lawyers including 3,712 associates, 6,236 partners/shareholders (equity and non-equity), 608 active counsels, and 357 staff lawyers working in 187 U.S. law firms. In its 38th year, the survey is an invaluable benchmarking tool for managers of law firms.
Data is presented nationally, by firm size, by geographic location, by practice area specialty, by population area size, by year admitted to bar and by years of experience. This year’s survey also includes gender analysis for rates, hours and compensation for the first time.
A companion study, the Small Law Firm Economic Survey, 2010 Edition, specifically for law firms with 20 or fewer lawyers, will be available this fall. Additional information on both surveys can be obtained by contacting Kevin Iredell at (212) 457-9500/ kiredell@alm.com, or calling 1-(888) 770-5647.
ALM Legal Intelligence offers detailed business information for and about the legal industry, focused on the top U.S. and international law firms. The division’s online research Web service, www.almlegalintelligence.com, provides subscribers with direct, on-demand access to ALM LI’s extensive database of surveys, rankings and lists related to law firms and the legal industry. ALM Legal Intelligence is a division of ALM.
ALM, an integrated media company, is a leading provider of specialized business news and information, focused primarily on the legal and commercial real estate sectors. ALM’s market-leading brands include The American Lawyer, Corporate Counsel, GlobeSt.com, Insight Conferences, Law.com, Law Journal Press, LegalTech, The National Law Journal and Real Estate Forum. Headquartered in New York City, ALM was formed in 1997. For more information, visit www.alm.com.
ALM, The American Lawyer, Corporate Counsel, GlobeSt.com, Insight Conferences, Law.com, Law Journal Press, LegalTech, The National Law Journal and Real Estate Forum are trademarks or registered trademarks of ALM Media Properties, LLC or affiliated entities.
Contact:
Lee Feldman, Peters & Feldman for ALM
Phone: (203) 341-8922
E-mail: lfeldman@alm.com