Financial indicators of the world leaders, apart from the fat that they simply ARE indicatorsJ, very vividly illustrate the fact that – generally – everybody chooses one out of two options:
- ego expressed in size (the volume of business);
- ego expressed in the amount of money in the partners’ pockets.
Numbers from The American Lawyer are very eloquent:
by revenue 2014
by PEP (profit per partner) 2014
|Baker & McKenzie: $2,540,000,000||Wachtell Lipton: $4,755,000|
|DLA Piper: $2,481,000,000||Quinn Emanuel: $4,485,000|
|Latham & Watkins: $2,285,000,000||Cahill Gordon: $3,780,000|
|Skadden Arps: $2,235,000,000||Sullivan & Cromwell: $3,675,000|
|Clifford Chance: $2,125,500,000||Paul Weiss: $3,620,000|
|Kirkland & Ellis: $2,016,000,000||Cravath: $3,290,000|
|Linklaters: $1,936,000,000||Kirkland & Ellis: $3,280,000|
|Allen & Overy: $1,930,500,000||Simpson Thacher&Bartlett: $3,165,000|
|Freshfields: $1,927,000,000||Gibson Dunn: $2,945,000|
|Norton Rose Fulbright: $1,904,000,000||Slaughter and May: $2,945,000|
Obviously, one can’t spot corresponding match between the right and left columns.
There is very few correlation between income of the leaders and the number of lawyers involved, which provides the base for conclusions about effective/non-effective utilization of personnel (at least within the range of firms in similar price segment price range of firms).
by revenue 2014
by headcount 2014
|Baker & McKenzie: $2,540,000,000||Baker & McKenzie 4,245|
|DLA Piper: $2,481,000,000||DLA Piper 3,962|
|Latham & Watkins: $2,285,000,000||Dacheng 3,681|
|Skadden Arps: $2,235,000,000||Norton Rose Fulbright 3,547|
|Clifford Chance: $2,125,500,000||Yingke 2,689|
|Kirkland & Ellis: $2,016,000,000||King & Wood Mallesons 2,596|
|Linklaters: $1,936,000,000||Dentons 2,503|
|Allen & Overy: $1,930,500,000||Clifford Chance 2,480|
|Freshfields: $1,927,000,000||Jones Day 2,464|
|Norton Rose Fulbright: $1,904,000,000||CMS Legal Services 2,343|
The market conditions in our part of the globe, where financial transparency of business is less likely to be compared to the reality described above, there is still a habit to comply with the number of quantity of lawyers.
Everyone chooses for oneself – either the quantitative indicators which are easy to manipulate, or own satisfaction from own business, which is more difficult to manipulate.