Salary Information Spotlight

Pending Malpractice Suit Against Firm Doesn't Excuse Paying Fees, N.J. Court Rules

New Jersey Law Journal

A family court order requiring a divorce litigant to pay a law firm $50,000 in fees, even though he had a malpractice case pending against the firm, has been upheld on appeal. A New Jersey court ruled there was no error in ordering and enforcing the fee award, because the client neither asked the family court for a stay nor sought to consolidate the malpractice and matrimonial cases. The court also noted the lower court "expressly carved out the malpractice issue from its decision, and made no findings on those allegations."

White & Case's Revenue Plunges 11 Percent

The American Lawyer

White & Case's 2009 revenue fell 11 percent, one of the largest drops so far reported by an Am Law 100 firm. Total gross revenue for the firm was $1.3 billion compared with $1.46 billion in 2008. Profits per equity partner were largely flat at about $1.6 million. In 2009, the firm opened an office in Doha, Qatar, and played a key role on the Chrysler bankruptcy. However, White & Case let go 200 attorneys and 200 staff last year due to the global economy, and recently saw 12 partners defect to Latham & Watkins.

Paul Weiss Reports 'Most Profitable Year in Firm's History'

The American Lawyer

Many Am Law 100 firms are reeling from the recession, but not Paul Weiss. Although the firm's gross revenue slipped by 3.8 percent in 2009, profits per equity partner hit $2.69 million, up from $2.65 million in 2008, even though the firm increased its head count slightly. Chairman Brad Karp said Paul Weiss' restructuring and litigation practices were particularly busy in 2009, which he described as "the most profitable year in our firm's history."

Hughes Hubbard's Revenue, Profits Spike

The American Lawyer

During a year of extraordinary economic turbulence, 280-lawyer firm Hughes Hubbard made double-digit gains in gross revenue and profits per partner. The firm posted a 10 percent increase in gross revenue in 2009, with profits per equity partner rising 9.7 percent. Another sign that things are good for Hughes Hubbard: Word leaked out last month that the firm was unfreezing its salaries and reinstating Cravath-scale bonuses.

Reed Smith Sees Profits Rise as Revenue Dips

The American Lawyer

Reed Smith reached the $1 million profits per equity partner mark in 2009 with a 7 percent increase. Although revenues could have reached the $1 billion milestone with a mild rise, they instead dipped by 3.8 percent, to $942 million. Reed Smith managed the feat of raising profits on falling revenue by squeezing the traditional pyramid structure: While the equity partnership grew by 4 percent, the firm shrank the ranks of non-equity lawyers by nearly 6 percent, and staff by about 4 percent.

How Badly Did Am Law Firms Really Fare Last Year?

The American Lawyer

Many in the legal industry are eager to close the book on 2009. That isn't surprising given that low demand for legal services and missed budget projections forced many firms to reassess partner pay packages, cut associate salaries and lay off attorneys and staffers. But there remains one final chapter to write before that book can officially be closed -- and The Am Law Daily is in the process of writing that chapter with its posts on the financial performance of individual Am Law 100 and 200 firms in 2009.

WilmerHale Posts 7 Percent Increase in Profits Per Partner

The National Law Journal

WilmerHale's profits per partner climbed by about 7 percent last year and gross revenue dipped slightly, the firm said Monday. The firm's PPP rose from $1.08 million to $1.16 million in 2009, an increase that William Perlstein, co-managing partner of the firm, attributed to "at least a dozen" partners leaving the firm to join the Obama administration. The firm's revenue dropped 1.5 percent, going from $955 million in 2008 to $941 million. The revenue per lawyer also fell by 1.8 percent to $1.01 million.

Sonnenschein Profits Drop 3 Percent

The American Lawyer

Profits per equity partner dropped 3 percent at Sonnenschein Nath & Rosenthal in 2009 and gross revenue was flat, according to figures reported by the firm Thursday, marking the second straight year of lower profits. One reason for the drop in revenue per lawyer: Sonnenschein's boost in head count. On Jan. 1, 2009, the firm added 100 lawyers from New York's Thacher Proffitt & Wood, including 40 partners, marking the largest lateral group Sonnenschein has taken on.

Study: General Counsel Pay Expected to Improve in 2010

Corporate Counsel

Some general counsel and other executives will likely see their salaries go up this year, according to a new report by the executive compensation research firm Equilar. The report looked at 40 examples of salary reductions during the second half of 2008. Of those, a quarter have been reinstated, while 35 percent stayed the same.

Locke Lord Managing Partner Confirms Rise in Profits Per Partner

Texas Lawyer

Profits per partner at Dallas firm Locke Lord Bissell & Liddell increased to $979,000 in 2009, up 2.4 percent from 2008, managing partner Jerry Clements confirmed Friday. Clements says she's "very excited" about the firm's PPP improvement. She says that the 619-lawyer firm did well in 2009 because some practice areas were very busy -- including white-collar crime, bankruptcy, litigation, energy, insurance regulation and intellectual property -- and because the firm brought on some key lateral hires.