Biglaw, Money, Partner Issues, Partner Profits, Quote of the Day

How Much Is An Associate Worth?

On this conservative analysis, an associate is bringing $640,000 in revenue to the firm while costing only $340,000, meaning that each associate has a surplus value to the firm of around $300,000/year.

On this model, a partner in a leveraged firm (i.e., four associates per partner), could make $1.2 million in a year without billing an hour.

Samuel Blatchford, breaking down the economics of associate compensation in Ramblings on Appeal. (That’s assuming an associate billing a mere 2000 hours/year, which many associates should have hit by August.)

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