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Law Practice Management

Reed Smith Partners Hit $1M Profit Mark Despite Revenue Dip

Posted Jan 28, 2010 11:39 PM CDT
By Martha Neil

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Another BigLaw firm has reported increased partner profits last year even though its income decreased.

Reed Smith says profit per equity partner in 2009 hit the $1 million mark, reports the Am Law Daily. But the firm fell a bit short of the $1 billion mark in its overall revenue, which dropped 3.8 percent to $942 million.

"It was a really tough year,” managing partner Gregory Jordan tells the Am Law Daily. “Demand was way down, and we had to make a lot of tough decisions."

As partner profits rose, compensation for at least some nonequity attorneys at the firm fell. Reed Smith also trimmed its nonequity partner ranks, cutting attorneys by 6 percent and staff by 4 percent while increasing the partner ranks 4 percent.

Partner profits at Reed Smith also hit the $1 million mark in 2007, reports the Legal Intelligencer in a January 2008 article. The firm had $892 million in revenue in 2007.

Related coverage:

ABAJournal.com: "Reed Smith Will Ask Nonequity Partners to Pony Up Possibly 15% of Pay"

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