BigLaw associates ‘have never had it better;’ they are working fewer hours, survey says, and making more money
Associates
BigLaw associates ‘have never had it better;’ they are working fewer hours, survey says, and making more money
February 1, 2024, 12:56 pm CST
Lawyer head count is growing, while productivity is declining, according to a year-end survey of more than 130 larger law firms released this week by Wells Fargo’s Legal Specialty Group. (Image from Shutterstock)
Lawyer head count is growing, while productivity is declining, according to a year-end survey of more than 130 larger law firms released this week by Wells Fargo’s Legal Specialty Group.
The survey showed that the number of lawyers is up 2.8% for 2023, while productivity is down 2.1% for 2023, which amounts to 1,542 billable hours per lawyer for the year, according to a survey summary provided by Wells Fargo.
A Big Law Business column from Bloomberg Law emphasized the findings.
“Associates have never had it better than they do right now,” wrote Big Law Business columnist Roy Strom. “BigLaw associates have never logged fewer hours and never brought home bigger paychecks. Who doesn’t like working less and getting paid more?”
Many BigLaw firms increased associate pay in late 2023. Paychecks typically range from $225,000 for the class of 2023 to $435,000 for the most senior associates—and that doesn’t include bonuses.
The Wells Fargo survey gathered information from more than 130 firms, including 70 Am Law 100 firms (representing the nation’s top 100 grossing firms) and 35 Second Hundred firms (ranked 101 to 200 by revenue). The remainder were regional firms.
Strom looked at information provided by firms in the Am Law 100.
“Lawyers at those top firms billed an average of 1,551 hours last year,” Strom wrote. “That’s down from an all-time peak in 2021 of 1,683 hours, Wells Fargo data show. It might not sound like much. It works out to about 2.5 hours of extra time per week. Hit the Peloton, go see a movie, give yourself a little treat.”
Owen Burman, managing director of Wells Fargo’s Legal Specialty Group, told Strom that the decline in productivity didn’t lead to a large number of layoffs because of increased billing rates.
Burman told Law360 that the outlook for firms in 2024 is “pretty positive” at this point. He cited increases in billing rates and demand and noted that firms have a lot of work in progress.
Other publications covering the survey include Law.com, Reuters and another Bloomberg Law story.
Wells Fargo also found, regarding all the firms surveyed, that:
• Standard billing rates increased 8.3% in 2023.
• Revenues increased 6% in 2023, double the 2022 growth rate of 3%.
• Net income increased 5.9% in 2023, compared to a 3.1% decrease in 2022.
• Profits per equity partner increased by 4.9% in 2023.
• Expense growth eased to 6% in 2023, down from double digit growth posted in the first nine months of 2022.
