How Much Money Do Law Firms Make? 2010 Large Law Firm Revenue Statistics

Thanks to the BRW for the following statistics:

partnership bling

1. Minter Ellison – $503m (+2%)
2. Mallesons Stephen Jaques – $494.4m (-10.5%)
3. Freehills - $477m (-3%)
4. Allens Arthur Robinson – $444m (+2% approx)
5. Clayton Utz – $442.5m (-9.7%)
6. Blake Dawson - $358m (-3.5%)
7. Corrs Chambers Wesgarth - $234.2m (-0.4%)
8. Norton Rose – $220m (0%)
9. DLA Phillips Fox – $217m (-2.7%)
10. Gadens – ?$160.3m (+9.2%)
11. Baker & McKenzie – $154.1m (-0.6%)

Leaving out Mallesons Stephen Jaques, Clayton Utz and Gadens, the average large law firm performance for the 2010 financial year was -0.6%. That is, revenue was virtually unchanged. If we include those other firms, this figure changes only slightly to an average revenue reduction across the 11 largest firms by revenue of 1.5%. If you’re like us, you’re probably wondering what all the fuss was about; nothing much changed! Yet, nearly all firms implemented a pay freeze over the same period and most reduced non fee-earner headcount considerably (and to a lesser extent fee-earner headcount). Some firms even renegotiated tenancy space. For example, we’re informed by an anonymous Mallesons spy:

Just to prove how tight Mallesons is, we now have the ridiculous situtation in the Melbourne office where we occupy level 42 and 44-50. Level 43 was given back to the landlord after the partnership effectively “chopped spare lawyers” – as Ian Paterson would say. Lander & Rogers now occupies level 43. It is a bit of a metaphor for the way the legal market is moving, I guess. Smaller firms that respect their employees like Landers are literally and figuratively moving up in the world while tired firms like Mallesons that treat each new graduate like a number are gradually withering away…

Yes, as R&B megastars P.M Dawn once said, it certainly does sound like Lander & Rogers are Movin’ on up. Is it time for the top-tier to recognise that their behaviour toward junior and non fee-earner staff is contributing both to wider perceptions of the firm and to financial performance?

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