Study Finds Declining Lawyer Revenues, Gender Pay Gap at Small and Midsize Firms
Revenue per lawyer at small and midsize firms has dropped two years in a row, according to a new survey.
In 2008, revenue per lawyer dropped by an average of almost 5 percent, and in 2009 it dropped by less than 1 percent, according to the survey by ALM Legal Intelligence and the National Law Journal. The two-year decline is unprecedented in the survey, which is dominated by firms of less than 150 lawyers, the NLJ reports.
Average revenue per lawyer ranged from $350,000 at firms of two to eight lawyers, to $447,000 at firms of more than 150 lawyers, according to a survey summary (PDF). The survey also found “fairly stark gaps between pay rates for men and women.” Women earn 76 percent of men’s salaries as equity partners, 85 percent as nonequity partners, and 93 percent as associates.
Many firms cut costs in response to declining lawyer revenues, with expenses per lawyer dropping 5 percent in 2009 and 2 percent in 2008. Taking a hit were promotional, equipment and occupancy costs, as well as spending on support staff. The focus on costs helped the firms achieve a boost in net income of 2.7 percent.
