Law firms on track for strong year, report says
Increases in law firm revenue—up 11.4% in the first six months of 2024, compared to the same period last year—are one indication of a strong year. (Image from Shutterstock)
Increases in law firm revenue—up 11.4% in the first six months of 2024, compared to the same period last year—are one indication of a strong year, according to a report by the Citi Global Wealth at Work law firm group.
Other positives: Demand for legal work was up 2.9% and lawyer productivity was up 2.1% since the first half of 2023, report Law.com and Law360.
Gretta Rusanow, managing director and head of advisory services at Citi’s law firm group, is impressed by those numbers.
“I think all signs are pointing to a strong year. I think this will be one of the strongest years we see in terms of law firm performance,” Rusanow told Law.com in an interview.
The report is based on information from 81 firms in the Am Law 100, which include the nation’s 100 top-grossing firms, 58 firms in the Am Law Second Hundred and 53 smaller firms.
Other results from the six-month report, as reported by Law.com and Law360:
• Overall expenses increased 6.9%. Operational costs were up 7.5%, while compensation costs were up 6.3%.
• Equity partner head count declined by 0.4%, while income partner head count increased by 4.9%. The increase in income partners is one reason why compensation expenses are higher.
• Demand and revenue increases were highest for firms that are among the nation’s top 50 in terms of revenue. They saw a 3.3% increase in demand and a 14.3% increase in revenue. Demand and revenue were up 2.7% and 5.5%, respectively, among Second 50 firms and up 2.1% and 7.8% among Second Hundred firms.
“I think what jumps out to me is it’s a good year for everyone, to be honest with you,” Rusanow told Law.com.
