Law Firms

As 'super firm' profits soar, others boost revenue by shrinking partner ranks


Some California law firms are seeing profits soar simply by being at the top of their game.

But others, trying to compete with “super firms” such as Latham & Watkins and Quinn Emanuel Urquhart & Sullivan and Silicon Valley powerhouses such as Cooley, are boosting reported profits by reducing the number of partners who get a share of the firm’s income, the Recorder reports. A number also ratcheted up end-of-year collection efforts to pull in as much revenue as possible in 2012.

Thus, a relatively modest revenue rise for the firm overall can look bigger when its translated into profits per partner.

“You don’t get a 10 percent jump in profits per partner with a 2 percent jump in revenue unless you shrink or restructure somehow,” consultant Peter Zeughauser told the legal publication.

Previous:
25-year-old tape's revelation prompts prosecutors to offer mid-trial plea deal

Next:
3 lawyers facing theft and RICO cases over private investigation work for Glock get reprieve


We welcome your comments, but please adhere to our comment policy. Flag comment for moderator.

Leave a comment
Your screen name.
Your email address.