To Leading Law Firms the Am Law 100/200 the Global 100 the A-List Corporate Scorecard
Total Page:16
File Type:pdf, Size:1020Kb
UIDE TO LEADING LAW FIRMS THE AM LAW 100/200 THE GLOBAL 100 THE A-LIST CORPORATE SCORECARD UIDE ZEUGHAUSER GROUP’S 2011 POCKET GUIDE UIDE TO THE AMERICANUIDE LAWYER RANKINGS UIDE Zeughauser Group Dear Clients and Other Friends: We are delighted to provide you with our ZGuide to the 2011 Am Law 200 and 2010 Global 100—our ninth edition of the ZGuide. In 2010 the legal industry rebounded nicely from the economic downturn that began in the second half of 2007 and continued through 2009. As the year closed, we saw hiring and growth resume and profitability improve across the industry. But the relentless pressure of unforgiving global economic trends demanded still better talent and client management by all firms. We were delighted that many of the world’s leading firms looked to us for advice on innovations and best practices for successfully addressing the increasing challenges of market leadership. We continue to believe that the traditional law firm model— the promise of a rewarding career, including training, challenging work, and partnership for those lawyers who demonstrate the traits of ownership and find career satisfaction in helping clients achieve their goals—provides the clearest path to success. But, as we note in the article contained in this edition of the ZGuide, we believe the ever- increasing sophistication of clients and unyielding pressure on firms to maintain high levels of profitability suggest they adopt changing metrics for measuring lawyer performance. Firms that possess the ability and discipline to change will lead; those that don’t will lag. • ZGuide • We want to take this opportunity to thank our clients and the over fifty Am Law 200 firms that participate in our Chair, COO, and CMO Roundtables for their interest in our work. We look forward to working with them and new clients to identify and capture opportunities for growth in the increasingly global marketplace for legal services. We wish all of our friends in the industry renewed drive, clear vision, and great vitality throughout 2011. Sincerely, Ron Beard Mozhgan Mizban Norm Rubenstein Jack Walker Mary K Young Peter Zeughauser Kent Zimmermann Lonnie Zwerin © ALM Media Properties, LLC and Zeughauser Group, LLC Chart information reprinted with permission from the April, May, June 2011 and October 2010 issues of The American Lawyer (The Am Law 100, The Am Law 200, Corporate Scorecard, The A-List, and The Global 100). © 2010 and 2011 ALM Media Properties, LLC • ZGuide • Table of Contents Methodology The Am Law 200, A-List ..................................2 The Am Law 200 Ranked by Profits Per Equity Partner ....................4 The Am Law 200 Ranked by Value Per Lawyer ..........................24 The Times They Are A-Changin’ So Must the Metrics ....................................34 Methodology The Global 100 ..........................................40 The Global 100 Ranked by Profits Per Equity Partner................... 42 Methodology The Corporate Scorecard ..............................52 The Corporate Scorecard Mergers and Acquisitions ..............................54 Private Equity ...........................................55 IPOs ......................................................56 Equities by U.S. Corporations .........................57 Investment-Grade Debt ................................58 High-Yield Debt .........................................58 Asset-Backed Securities ................................59 Mortgage-Backed Securities ...........................60 Municipal Bonds ........................................60 Project Finance ..........................................62 REIT Equities ............................................63 REIT Debt ................................................63 Bankruptcies ............................................64 Emergences .............................................65 Law Firm Index .............................................68 ZGuide • 1 The Am Law 200 Methodology The Am Law 200 is reported by staff members at ALM's publications throughout the United States, including The American Lawyer, The Connecticut Law Tribune, Daily Business Review (Miami), Fulton County Daily Report (Atlanta), The Legal Intelligencer (Philadelphia), The National Law Journal/LegalTimes, New Jersey Law Journal, New York Law Journal, The Recorder (San Francisco), and Texas Lawyer. Most law firms provide their financials voluntarily for this report, but all data, whether it comes officially from the firm or not, is investigated by reporters. Definitions Gross Revenue is fee income from legal work only. It does not include disbursements or income from nonlegal ancillary businesses. The revenue and profit figures listed are for the firm’s most recently completed fiscal year, except where otherwise noted. Most Am Law firms are on a calendar fiscal year. Equity Partners are those who receive no more than half their compensation on a fixed-income basis. Nonequity Partners are those who receive more than half their compensation on a fixed- income basis. Retired partners and of counsel are not counted as partners, nor are payments made to them counted in net operating income. Lawyer numbers are for full-time-equivalent figures for the 2010 calendar year taken from The National Law Journal ’s most recent NLJ 250 survey. 2 • ZGuide Calculations • Gross Revenue is rounded to the nearest $500,000. • Profits Per Equity Partner, Revenue Per Lawyer, and Average Compensation—All Partners are rounded to the nearest $5,000. Methodology • Revenue Per Lawyer (RPL) is calculated by dividing gross revenue by the number of lawyers. • Profits Per Equity Partner (PPEP) is calculated by dividing net operating income by the number of Equity Partners. • Compensation Average—All Partners is the net oper- ating income plus compensation to Nonequity Partners, divided by the number of Equity and Nonequity Partners. • Value Per Lawyer (VPL) is calculated by dividing the Compen- sation Average—All Partners by the total number of lawyers. That figure is then divided by $10 million to determine how many lawyers it takes to generate that amount. Location of Firms Firms are identified as "international" or "national" according to the distribution of their lawyers. Vereins are broken out separately because their structure, particularly regarding profit sharing, differs significantly from that of other Am Law 200 firms. These breakouts are obtained from the most recent National Law Journal NLJ 250 survey. If 40 percent or more of the firm's lawyers were located outside the U.S., we identify the firm as international. If no more than 45 percent of the firm's attorneys were located in any one region of the country, we identify the firm as national. The A-List The A-List, comprised of just 20 firms, is determined by rankings in The Minority Law Journal’s Diversity Scorecard, and in three surveys conducted by The American Lawyer (the Revenue Per Lawyer, Pro Bono, and Midlevel Associate surveys). Rankings in each survey are converted into points, using an inversion calculation in which a firm ranked Number One receives 200 points. To determine each firm’s score, points are doubled for both Revenue Per Lawyer and Pro Bono rankings and then added to the scores for the Midlevel Associate Survey and Diversity Scorecard rankings. Additional information, including the full methodology of how the A-List is calculated, is available on americanlawyer.com and in the July 2011 issue of The American Lawyer. u ZGuide • 3 The Am Law 200 The Largest Firms in the U.S., Ranked By Profits Per Equity Partner Compensation Firm Profits Per Revenue Per Average, Lawyers, Partners, Location PPEP Rank 2011 PPEP Rank 2010 Equity Partner Gross Revenue Am Law 200 Rank Lawyer RPL Rank All Partners Wachtell, Lipton, Rosen & Katz 1 1 $4,345,000 $580,000,000 46 $2,290,000 1 $4,345,000 253 Lawyers, 84 Equity Partners, 0 Nonequity Partners, New York Quinn Emanuel Urquhart & Sullivan 2 2 $3,620,000 $550,500,000 51 $1,205,000 5 $2,845,000 457 Lawyers, 94 Equity Partners, 37 Nonequity Partners, Los Angeles Sullivan & Cromwell 3 3 $3,250,000 $1,079,000,000 14 $1,440,000 2 $3,250,000 749 Lawyers, 166 Equity Partners, 0 Nonequity Partners, New York Cahill Gordon & Reindel 4 7 $3,230,000 $323,500,000 82 $1,185,000 7 $3,040,000 273 Lawyers, 61 Equity Partners, 6 Nonequity Partners, New York Cravath, Swaine & Moore 5 5 $3,170,000 $591,000,000 44 $1,195,000 6 $3,170,000 495 Lawyers, 87 Equity Partners, 0 Nonequity Partners, New York Kirkland & Ellis 6 8 $3,075,000 $1,625,000,000 6 $1,180,000 9 $1,645,000 1,379 Lawyers, 280 Equity Partners, 337 Nonequity Partners, National Paul, Weiss, Rifkind, Wharton & Garrison I 7 6 $3,050,000 $751,000,000 30 $1,060,000 16 $3,050,000 709 Lawyers, 121 Equity Partners, 0 Nonequity Partners, New York Irell & Manella 8 9 $2,935,000 $256,000,000 113 $1,390,000 3 $2,935,000 184 Lawyers, 59 Equity Partners, 0 Nonequity Partners, Los Angeles Simpson Thacher & Bartlett I 9 10 $2,640,000 $923,500,000 21 $1,140,000 11 $2,640,000 810 Lawyers, 177 Equity Partners, 0 Nonequity Partners, New York Cleary Gottlieb Steen & Hamilton I 10 12 $2,605,000 $1,050,000,000 17 $930,000 32 $2,605,000 1,127 Lawyers, 191 Equity Partners, 0 Nonequity Partners, International Boies, Schiller & Flexner 11 4 $2,560,000 $305,000,000 89 $1,265,000 4 $1,565,000 241 Lawyers, 41 Equity Partners, 55 Nonequity Partners, National Milbank, Tweed, Hadley & McCloy I 12 14 $2,490,000 $622,000,000 41 $1,085,000 13 $2,300,000 574 Lawyers, 119 Equity Partners, 28 Nonequity Partners, New York Cadwalader,