2008 Revenue Numbers
It’s March. For those new to the game, March is when we traditionally get all kinds of data on last year’s profits at major law firms. The American Lawyer has been putting out profit numbers from individual firms for a couple of weeks. Today, The Lawyer gives us an overview of the top 30 firms in terms of global revenue:
Of the top 30 firms, eight posted flat or reduced incomes, while 19 saw a reduction in average profit per equity partner (PEP).
Skadden secured the top spot with $2.2 billion in global revenue in 2008. That’s just a little bit more than the firm earned last year.
Baker & McKenzie was a surprising number two. But there’s one huge caveat to Baker’s revenue numbers:
Despite the apparent vindication of Bakers’ longstanding global strategy, the firm’s delight at securing the number two spot could be short-lived. Bakers has a 30 June year-end, meaning its most recent fiscal year avoided the harshest months of the recession and the corresponding impact on deal flow.
This is excellent news for John McCain.
More revenue numbers after the jump.
Third in terms of global 2008 revenue is Latham & Watkins:
Latham & Watkins secured third place, slipping one place after posting a 4 per cent revenue drop. Latham also posted one of the sharpest PEP falls, down 21 per cent from $2.27m to $1.8m.
2008 is so last year:
Other significant movers in the revenue table include Reed Smith, which rose eight places, and K&L Gates, which jumped 10 following a 27 per cent rise in income. K&L Gates’ increase, by far the largest among US firms last year, was primarily due to the firm’s ongoing strategy of aggressive expansion and acquisitions….In the current financial year the firm also acquired Chicago-based Bell Boyd & Lloyd, which has around 250 lawyers across its offices in Chicago, San Diego and Washington DC.
“Now is not the time to be timid,” argued K&L Gates chairman Peter Kalis. “If you’re in a position to invest, you should do it. There are so many opportunities for a firm like ours.”
Some might argue that those in a position shouldn’t also be in a position to fire people.
Check out the full top 30 revenue list here. I can’t imagine what this will look like for 2009.
Bakers snaps at the heels of Skadden in US top 30 rankings [The Lawyer]
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I heard Latham laid off 32 of 61 NYC first years. Is that true?
may want to change that "m" to a "b". Yutz.
try billion -- with a "b"
Any firm that posted increased profits but laid off attorneys and staff should be set on fire.
Times are bad! Only $2.2 million?
Oh, you so totally stuck it to John McCain!!!!!!!
Remember when he was the Republican nominee for president last year?
Coming up next on ATL: Nixon jokes, Adlai Stevenson barbs, and humorous remarks about Alf Landon's hat.
I knew the recession was bad, but $2.2 MILLION in global revenue for Skadden....we are all doomed
skadden must be hurting.
or Elie can't count beyond the millions.
ppp were still really high compared to five and ten years ago. There was no justification for most firms to conduct large scale-layoffs. What Latham did was incredibly short-sighted. Six month paid severance paid in a lump sum to fired associates regardless of whether they get other jobs. Thus, Latham is betting that the economy is so bad that it is worth paying associates six months in return for zero revenues rather than keep associates around for a few more months and see if things turn around before paying a three month severance if things do not.
A rampant breakout of MRSA is running amok in the Skadden Chicago office.
Bah. If it isn't about Orrick and whether my friends are still employed, it just doesn't matter...
PS: Dow = scary.
10 - I thought it was SkaddenLA?
4 said "Any firm that posted increased profits but laid off attorneys and staff should be set on fire."
In part, profits are probably up due to lowering of expenses. Most expenses are fixed, e.g. real estate, malpractice insurance. Other expenses = associates and staff, which can be reduced to increase profits.
Don't shoot the messenger - just saying...
4--Layoffs are not about last year's revenue, its about future projects and market conditions.
SkaddenLA too? Jesus, people, wash your damn hands. MRSA is gross.
13, I think the profit numbers pre-dated most layoffs. Profits are from last year, layoffs happening (predominantly) this year. Just saying.
Where are the Orrick layoffs?
WHERE ARE THEY!!!!!!!!!!!!!!!!!!
What's with the attacks on 4? I believe we all agree with the sentiment, if not the actual substance.
Breaking News: Freshfields closes its Bratislava offices. You heard it here first.
STB?
shearman seems to be doing poorly, where is the news on them? still conducting stealth layoffs?
I think the MRSA is actually eating Skadden's profits and the faces of its staff.
14 - OK. But future projections often require extrapolation of past trends into the future. Therefore, layoffs are about last years revenue.
I am extrapolating myself right now just to keep warm.
Scrotum Saggins
16 -- fair enough. I'm guessing there were firings last year, too, but not nearly as many.
PPP is calculated differently at each firm. There is not a universal way of calculating PPP, so the number can be easily manipulated. Most firms do not count income partners, but many don't even count all equity partners. It's an extremely unreliable number.
No, I'm not a partner, but I hope one day to play one on TV. I hate what the economy has done to so many of us.
Where are all the law students worrying about how this will affect them in 2-3 years? I want to hear how worried/nervous they are.
*sadly trudges back to class after spring break*
-nervous T-10 1L
soon to be nervous 1L sa
B&M to 190K!
Thanks 27! My day isn't complete without you.
-26
Is there a way to stop #27 from ever commenting again. Hey nervous SA - be happy you have a job and stop posting that you go are a T-10 1L. Your random status updates are getting old, go twitter or something. You are so *^&*ing annoying. God damn I hope you are a SA at Latham.
26: this won't hurt us. Firms will be nice and lean due to layoffs by the time we graduate.
- Confident T14 2L
I agree with 30. The whole Nervous t-10 1L shtick is getting old. I don't sit around wondering what this Michigan 1L is up to. I don't need to know that he or she is sad about going back to class or nervous about whatever terrible news is happening today. WE ARE ALL NERVOUS! YOU ARE NOT SPECIAL! WE DO NOT CARE ABOUT YOUR EVERY MOVEMENT OR THOUGHT! STOP IT NOW!
No, no, 30, you're wrong. I love watching law students wring their hands while people with actual responsibilities lose their livelihood.
31 - on drugs
T-10 1L Welcome back to AA. At least we don't have a huge snow storm this time.
this is terrible news for UPenn State's satellite campus in Philly!
can any inside confirm if LW fired anyone from Harvard or Yale?
35, shouldn't that be "welcome back from AA." I assume Nervous 1L has a serious drinking problem.
Anyone heard anything about Baker's Konigsberg office?
i just registered the name "nervous T10 2L", assuring us all that in a few short months, some idiot in Michigan won't be able to update his moniker and the nightmare will be over.
#1, no idea about the percentage of Latham first-years who were laid off, but there is no question whatsoever that a good amount fell victim.
I personally know two who were laid off, and they have verified that much.
23--the trend in the last 2-3 years are irrelevant to today's market. They simply don't apply.
I wonder whether/how bonuses reflected onto these numbers. Most firms paid those by Jan 1st, whereas douchebags like Dewey are only paying on March 31st. Hence, tons of firings at Dewey are happening now to deny those bonuses. How f despicable to lay associates off (including 1st years!!!) right before their meager bonus is due. Ship be sinking!
You will never understand what it means to love a simian.
37--When the ax falls your Ivy League degree is just as easy to slic e through as any other.
Jones Day's PEP is only 770K? Holy ShiTTT! We have secretaries who make more than that.
All the firms with an increase in PEP (Bakers, Sidleys, Weil and Greenberg) have no moral right to fire people.
How do I know if I am prestigious?
Jones Day's PEP is only 770K? Holy ShiTTT! We have secretaries who make more than that.
48th!
Harvard or Yale grads laid off??? Preposterous!!
So, where's the schmuck who was talking smack about Kirkland being a "firm in decline for quite some time"?
48 - If angels sing when you walk down the street, and/or you went to Harvard.
47, last year's PEP has nothing to do with this year's layoffs you idiot. 2008 was by all accounts an awesome year for the first 3/4. so awesome, in fact, that even the last terrible quarter didn't undo the awesomeness of the first 3 quarters. However, 2009 will consist of four quarters that look like the last quarter in 2008. if the partners don't start chopping numbers FAST there won't be a firm left in 2010. don't forget that firms rely on things like "revolving lines of credit" to run their day-to-day operations. likewise, clients don't like firms that threaten to become insolvent. the only prudent choice is to slash the dead weight.
DOW to 5,000!!!!!!
DOW to 5,000!!!!!!!!!!!!!!!
37. Skull and Bones would never let such a thing happen. Hell, they kept Bush employed for two terms. Yalies are safe.
What's the story on stealth layoffs at Baker's Danzig office?
God Elie, you fat turd, I'm sick of your stupid crap. WTF is up with the John McCain joke? Pretty tired stuff. Lat, can you please fire butterball already? I'm sure the recession will let you hire some talent on the cheap.
God Elie, you fat turd, I'm sick of your stupid crap. WTF is up with the John McCain joke? Pretty tired stuff. Lat, can you please fire butterball already? I'm sure the recession will let you hire some talent on the cheap.
47--Time to grow up and face reality--"moral right"? In today's economy firm are going to have to fight to survive. That means cutting costs and preparing for the bleak economic future ahead.
Something is wrong with that chart. An increase from $1.2m to $2.2m PPP is not a 7.5% increase. I'm guessing the 2007 number is a typo.
Something is wrong with that chart. An increase from $1.2m to $2.2m PPP is not a 7.5% increase. I'm guessing the 2007 number is a typo.
(this is regarding Weil)
The McCain joke/meme was mildly funny when someone kept posting it last week Just liike the Jindal address joke. Its suddenly not funny when Elie does it. As I said before, Elie is the Jackie Robinson of legal bloggers. Every February, our children will marvel at his success and his ability to absorb pretextual abuse so they won't have to.
wow, 64 nailed it.
63--Yes, Weil 2007 PEP is a typo. Should be 2.1 or something.
why does a top firm like jones day have such low PEP? because it's less leveraged?
Focus, children, focus. It is the stories that matter, not the occasional typo or joke.
Elie
That link only provides the top 10, not the top 30.
The top 30 is here:
http://www.thelawyer.com/cgi-bin/item.cgi?id=136931&d=415&h=417&f=416
You're welcome.
And when all is said and done, if DLA were to consolidate their US and international operations, they would be numero uno by a wide margin...
Just sayin'
37 - confirmed that Latham laid off people from Harvard Law, at least. Not too many YLS around in the first place so hard to say about that.
70: and they STILL would have laid off close to 400 attorneys...
Under the circumstances, with the firms having varying fiscal year ends, the list becomes misleading. Which firms, other than Baker, have a June 30, 2008 fiscal year end, and thus aren't encompassing the economic downturn in these revenue numbers? WilmerHale, for one.
2008 IS last year.
70,
the revenue is indicated as worldwide revenue.
What operations of DLA that not include?
Do they operate under a different name outside of the US?