Weil Reports More Than $2 Million PEP; Milbank Doubles Growth Rate

Sofia Lind

Legal Week

Weil, Gotshal & Manges reports it has broken the $2 million barrier for partner profits in 2007, while Manhattan rival Milbank Tweed Hadley & McCloy becomes the latest U.S. firm to post double-digit increases in both turnover and profitability.

Profits per equity partner (PEP) at Weil Gotshal improved by 11 percent to reach $2.11 million, up from last year's figure of $1.9 million.

Total revenue at the New York law firm increased by 12 percent to $1.175 billion, up from $1.05 billion in 2006.

The news comes after Weil Gotshal last week reported a near doubling in PEP at its London arm, from £700,000 ($1.38 million) in 2006 to £1.35 million ($2.66 million) last year. London revenue rose by 6.5 percent to £57 million ($112.33 million), with local chief Mike Francies citing private equity and capital markets as top-performing areas in the U.K.

Milbank, meanwhile, reports it more than doubled its growth rate of 2006 to record an 18.8 percent surge in global fee income, from $540.8 million to $642.5 million.

PEP rose by a similar amount, up 16.4 percent to $2.53 million (£1.28m), compared to $2.17 million in 2006.

The duo join a growing list of major U.S. firms to post significant increases in fees and profitability, including Latham & Watkins, Mayer Brown and Texas leader Baker Botts.

Firms to have posted disappointing financials include intellectual property specialist Howrey, which saw PEP drop by 17.5 percent, and Cadwalader Wickersham & Taft, where profits dipped by 6 percent against a modest turnover rise of 5 percent.