The American Lawyer‘s "A-List" is out,
and I’ll have something to say about it in the next day or
two. (The A-List, I probably needn’t remind you, ranks
firms not by revenue, size, or profitability, but by a combination
of (a) revenue per lawyer; (b) commitment to pro bono work;
(c) associate satisfaction; and (d) diversity.)
Last
year I gave it a hard time, primarily for what I perceived
to be its opaque methodology, but I promise to be kinder this
time around.
Meanwhile the big news across the pond is today’s release
of Legal Week‘s "Top 50"—the top
50 UK firms by fee income. Here’s the chart, but here’s
the real news:
- The firms are finally coming out of their post-2001
swoon, with revenue up 8.2% and profits doing even better
at +11.4%. - Combined, the firms employ 70,000 people and have £8.3-billion
(US$14.94-billion) in revenue. - Total equity partner profits reached £2.23-billion
(US$4.01-billion). - To maintain or raise profits per partner, the firms are
becoming increasingly selective about partnership promotions
and have increased their leverage—with, now, about
six fee earners for every partner. Nice, but as my
New Jersey born-and-raised physics professor used to remind
us, "You can’t play dat game fuh-evuh."
All in all, the Magic Circle did well, as did mid-tier and
national UK firms; the only laggards were what Legal
Week characterized as "chasing pack" firms—not
in the Magic Circle but not mid-tier either. And being
in that awkward spot may be increasingly difficult to escape
from, at least if you believe the always-thoughtful Tony
Williams of the Jomati consultancy:
“The changing stratification of the legal market is not yet fixed but, in two to three years, it will be,” he said. “At that stage, firms that find themselves stuck in the wrong place will find it very hard to move.”
A lesson for those of us on this side of the Atlantic?
