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The American Lawyer Reports Law Firm Revenues Top $46 Billion in 2005 Am Law 100 Rankings

Business Wire, June 28, 2005

NEW YORK -- The American Lawyer(R) magazine reported today that combined gross revenues for the Am Law 100(R), the nation's 100 largest law firms, increased by 10% last year to $46 billion, with five law firms generating more than one billion dollars in revenues. Partner profits climbed by 9%, to an average of $960K per partner, and revenue per lawyer increased by 8%, although total combined headcount for the list grew by only 2%. The 2005 Am Law 100 rankings, based on 2004 financial performance data, are featured in the July issue of the magazine, available beginning today. Selected Am Law 100 survey results will also be available on the Web at www.americanlawyer.com and www.law.com.

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"The nation's largest law firms continued to demonstrate their amazing ability to convert revenue into compensation for partners. On average, 42 cents of every dollar that firms took in last year went to the firms' partners, a level of efficiency that most of their clients would envy," said Aric Press, editor in chief of The American Lawyer. "For the second consecutive year, revenue per lawyer, the key metric of law firm economic health, grew faster than head count. That hasn't happened in a decade and resulted from an unending flow of big-ticket litigation, the return of deals and finance, and slower growth in head count."

Among the other highlights of this year's survey:

--According to Value Per Lawyer (VPL) rankings, a new metric introduced this year and designed to rank efficiency in production of partner profit, New York's Wachtell, Lipton, Rosen & Katz leads the industry in VPL by a wide margin, adding yet another category laurel to its collection. The troubled firm of Coudert Brothers ranked last in this measure.

--The number of non-equity partners in the Am Law 100 increased by 11%, while the number of equity partners grew by only 3%.

--Am Law 100 revenue per lawyer grew by 8%, while headcount grew by only 2%. For many notable NYC firms, revenue per lawyer increased, while headcount actually shrank, reflecting a tightening market for associates.

--Wachtell again led in profits per partner with $3.5 million, but evidence suggests a widening range of partner salaries, with the highest-paid firm partners making up to 35 times as much as the lowest paid firm partner. Eight firms --all based in New York City-- posted average profits per partner of $2 million or more, a new Am Law 100 record.

--Wachtell, the list's smallest firm by headcount, also led in revenue per lawyer and average partner compensation, while #2-ranked firm Sullivan and Cromwell posted an eye-popping 32% increase in revenue per lawyer.

--Almost all (14 out of 15) top-ranked firms in average partner compensation are based in New York. More than 10% of Am Law 100 firms have opened or significantly expanded their Chicago offices since 2001.

--Four new firms (including three from Philadelphia) joined this year's Am Law 100, while Seattle's Preston Gates and two D.C. firms (Shaw Pittman and Dickstein Shapiro) fell off the list.

This August, The American Lawyer will publish its rankings of the second hundred largest firms. To subscribe or request back copies of The American Lawyer, including copies of the Am Law 100 issue, please call (800) 755-2773 or (212) 545-5990 outside the U.S. An electronic edition of the magazine can also be purchased online at www.qmags.com/amlaw. The American Lawyer magazine is published monthly by ALM.

Headquartered in New York City, ALM is a leading integrated media company, focused on the legal and business communities. ALM currently owns and publishes 39 national and regional magazines and newspapers, including The American Lawyer, Corporate Counsel(R), The National Law Journal(R) and Real Estate Forum(R). ALM's Law.com(R) is the Web's leading legal news and information network, while ALM's GlobeSt.com(R) is the Web's leading information source for commercial real estate professionals. Other ALM businesses include book and newsletter publishing, court verdict and settlement reporting, production of professional trade shows, conferences and educational seminars, market research and content distribution. ALM was formed by U.S. Equity Partners, L.P., a private equity fund sponsored by Wasserstein & Co., LP. More information on ALM's businesses and services is available on the Web at www.alm.com.

Business Services Industry

The American Lawyer Reports Law Firm Revenues Top $46 Billion in 2005 Am Law 100 Rankings

Business Wire, June 28, 2005

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