Facts and Stats
Retirement and Succession Planning: Are You Up to Date on New Trends?
Partners age 60 or older control at least a quarter of the total revenue at 63 percent of firms.
65 percent of law firm leaders say partners resist most change efforts, while 56 percent say most partners are unaware of what they might do differently.
The State of the Legal Market
There may be a danger in relying on averages in the legal industry because the performance of law firms across industry segments is not reflective of the normal distribution of a bell curve:
Two-thirds of the nominal increases in Am Law 100 revenue reported in 2017 can be attributed to only about 20 percent of the firms
Of the 100 firms, 18 reported a decrease in their gross revenue, and 20 reported lower profits per partner
If the 20 smallest firms in the Am Law 100 were to disappear and be replaced by the 20 largest firms in the Am Law Second 100, the overall numbers for the Am Law 100 would move only very slightly — impacting less than 2 percent of total Am Law 100 revenue
Compensation Trends to Look For
The 2017 ALA Compensation and Benefits Survey has highlighted many new compensation trends, including:
Excluding Associate Attorney compensation, Principal Administrators/Executive Directors/COOs had the highest paid base salary at an average of $229,792 — a rate 32 percent higher than the second highest paid position
Several positions experienced reductions in total average compensation, including a 17.4 percent decrease for IP Directors/Administrators
Attorney turnover almost doubled in private law firms from 16.5 percent in 2016 to 31.9 percent in 2017
Check out all the other trends in the report.