America’s largest law firms post record revenues in 2016

It was a banner year for America’s largest law firms in 2016 as they collectively posted a record for total revenue.

According to The American Lawyer’s latest “Am Law 100” rankings, total revenue for the 100 largest law firms in the country for 2016 increased 4.3% to a record US$86.7bn, stronger than the 2.7% growth experienced in 2015.

Headcount increased to 95,515, up 2.7%, compared to less than 1% last year. Average profits per partner were US$1.66m, an increase of 3% compared to the 4% increased experienced in the previous year. Average revenue per lawyer (RPL) was US$907,765, up 1.5%, which is lower than the 2.6% growth experienced in 2015 and is the second-slowest increase since 2011.

There was little movement in the top-line rankings, as Latham & Watkins held on to its crown, while Kirkland & Ellis moved up three places to the second spot. It is followed by Baker McKenzie; Skadden Arps Slate Meagher & Flom; and DLA Piper, which dropped from the second spot.

The top 10 firms by revenue are:

1. Latham & Watkins (2015 rank: 1) – US$2.823bn (change from 2015: 6.50%)
2. Kirkland & Ellis (5) – US$2.651bn (15.00%)
3. Baker McKenzie [verein] (3) – US$2.620bn (7.80%)
4. Skadden Arps Slate Meagher & Flom (4) – US$2.495bn (3.50%)
5. DLA Piper [verein] (2) – US$2.470bn (-2.90%)
6. Jones Day (6) – US$1.977bn (1.90%)
7. Sidley Austin (7) – US$1.928bn (3.30%)
8. Hogan Lovells [verein] (9) – US$1.926bn (5.70%)
9. Morgan Lewis & Bockius (8) – US$1.860bn (1.10%)
10. Norton Rose Fulbright [verein] (10) – US$1.686bn (-3.00%)

In terms of RPL, there was also little movement. The top 10 firms by RPL are:

1. Wachtell Lipton Rosen & Katz (1) – US$3.130m (-70%)
2. Sullivan & Cromwell (2) – US$1.7m (40%)
3. Quinn Emanuel Urquhart & Sullivan (3) – US$1.675m (8.40%)
4. Kirkland & Ellis (5) – US$1.505m (5.60%)
5. Cravath Swaine & Moore (6) – US$1.485m (30%)
6. Skadden Arps Slate Meagher & Flom (4) – US$1.445m (0.70%)
7. Simpson Thacher & Bartlett (7) – US$1.340m (0.80%)
8. Boies Schiller & Flexner (9 tie) – US$1.325m (4.70%)
9. Davis Polk & Wardwell (13) – US$1.295m (5.30%)
10. Gibson Dunn & Crutcher (9 tie) – US$1.295m (2.40%)

The top 10 firms with the largest profits per equity partner are:

1. Wachtell Lipton Rosen & Katz (1) – US$5.800m (-12.10%)
2. Quinn Emanuel Urquhart & Sullivan (2) – US$5.015m (13.50%)
3. Paul Weiss Rifkind Wharton & Garrison (3) – US$4.380m (7.20%)
4. Cravath Swaine & Moore (6) – US$4.195m (18.00%)
5. Kirkland & Ellis (5) – US$4.100m (13.70%)
6. Sullivan & Cromwell (4) – US$4.050m (4.70%)
7. Davis Polk & Wardwell (9) – US$3.775m (14.20%)
8. Cahill Gordon & Reindel (8) – US$3.635m (20%)
9. Simpson Thacher & Bartlett (7) – US$3.505m (1.00%)
10. Cleary Gottlieb Steen & Hamilton (13) – US$3.320m (7.80%)

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