The ups and downs of the legal profession in 2023 were apparent as some Biglaw firms conducted layoffs, while others expanded their nonequity partnership ranks – a divergence that prompts the consideration: how is your Biglaw firm holding up financially? More specifically, is it among the Am Law 100’s Super Rich?
The Super Rich are legal firms boasting at least $1.1 million in revenue per lawyer (RPL) and $550,000 in profits per lawyer (PPL). These well-funded firms have emerged from the past year with plausibly significant margins over their counterparts. The American Lawyer reveals the Super Rich list in 2023 to be the second-largest in a decade, swelling four places to a tally of 38.
RPL and PPL are critical metrics to gauge law firms’ ability to accrue revenue while resolving client issues – this accords to leveraging billable hours and technology effectively, as per views by Marcie Borgal Shunk, founder and president of the Tilt Institute.
The expansion of the Super Rich list is particularly striking in light of many firms grappling with overcapacity subsequent to the transaction surge in 2021. This has engendered issues for firms in aligning the volume of client matters with headcount. Some firms have taken steps to mitigate threats to profitability by slashing costs or attempting to augment top-line revenue, with Shunk arguing for a preference for the latter.
In the 2024 Super Rich list, we notice three firms making a return – Akin Gump; Alston & Bird; and McDermott Will & Emery – along with two debutantes – Susman Godfrey and Jones Day. Dechert was the only firm to have dropped off the list this year.
The following Biglaw firms led the 2024 Super Rich list:
- Wachtell
- Susman Godfrey
- Sullivan & Cromwell
- Cravath
- Kirkland & Ellis
- Ropes & Gray
- Paul Weiss
- Skadden
- Davis Polk
- Quinn Emanuel
You can find the full roster of 38 firms here.
Congratulations are due to all Biglaw firms that have made it to the Super Rich club in 2023. If your firm’s performance is up to par, 2024 might just be your year to shine. For more details, refer to the American Lawyer’s article.