Locke Lord Bissell & Liddell, Partner Issues, Partner Profits

Will Law Firm Profits Be Up in 2009? At Locke Lord, Yes

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We have previously predicted that, when the American Lawyer releases its data on profits per partner in 2009, we’ll see some declines over 2008. Last year was not a pretty one for the profession (although most of you think this year will be better).
But could our prediction be wrong? Is it possible that, owing to various cost-cutting measures — including, but not limited to, lawyer and staff layoffs — some firms will report significant increases in profit per partner in 2009?
Quite possibly. Take the case of Locke Lord. The Executive Committee recently informed the LLBL partnership as follows:

The Firm ended 2009 with Net Income of $171.9 million. This total represents a $23.4 million (or 16%) favorable variance to the Revised Budget. This number is also $6.4 million over last year’s Net Income of $165.5 million. The Firm outperformed last year’s AmLaw results with Profits Per Partner of $979,000 as compared to last year’s $956,000. In addition, the average compensation per partner increased from $597,527 in 2008 to $643,820 this year.

As a result of the Firm’s outstanding performance, the Executive Committee has approved a year-end distribution of $60.0 million. This represents an increase of approximately $14.0 million over 2008’s year-end distribution.

The $60 million distribution was funded today. Happy Thursday, Locke Lord partners! (According to the 2009 Am Law 100 rankings, the firm has 136 equity partners and 165 nonequity partners.)
The full LLBL memo appears after the jump.


Here’s the memo. If you have similar information about your firm and its financial performance in 2009, please send it our way. Thanks.
LOCKE LORD BISSELL & LIDDELL — MEMORANDUM — 2009 FINANCIAL RESULTS
Dear LLBL Partners:
Our year-end accounting has been completed and I am pleased to report that 2009 was a very successful year for LLBL.
The Firm ended 2009 with Net Income of $171.9 million. This total represents a $23.4 million (or 16%) favorable variance to the Revised Budget. This number is also $6.4 million over last year’s Net Income of $165.5 million. The Firm outperformed last year’s AmLaw results with Profits Per Partner of $979,000 as compared to last year’s $956,000. In addition, the average compensation per partner increased from $597,527 in 2008 to $643,820 this year.
As a result of the Firm’s outstanding performance, the Executive Committee has approved a year-end distribution of $60.0 million. This represents an increase of approximately $14.0 million over 2008’s year-end distribution.
Within the next couple of days, you will be receiving your Statement of Operating Account Balances which will reflect substantial information, including the amount of your year-end distribution after all deductions. You will also be receiving a year-end Tax Memo regarding the Firm’s performance.
On Thursday, January 14, the year-end distributions will be funded. Those with direct deposit will have the funds deposited into your accounts. All others will receive checks.
On behalf of the Executive Committee, thank you for your hard work and extraordinary service to the Firm in 2009.
Now on to 2010.

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