This annual report is among a handful that we strongly recommend that you review, digest and circulate to your partners and colleagues. It reflects data collected primarily from BigLaw, but its relevance is important for leaders of smaller and midsize law firms, as well. It runs 28 pages, including plenty of charts and graphs. Among its highlights:
- There has been an overall decline in demand for legal services (especially transactional work) at AmLaw 200 firms.
- Midsize firms financially outperformed their BigLaw counterparts in the second half of 2022.
- Realization rates at midsize firms averaged just over 91% in 2022.
- Associate compensation grew at staggering rates – nearly 10% per year – in 2021 and 2022.
- Most law firm leaders, although guarded as to their predictions for 2023, are optimistic about a full recovery within three years.
- Associate turnover for midsize law firms has hovered at about 20% per year.
- A recent ABA study finds that 44% of young lawyers would leave their current firms for the ability to work more remotely.