More Good News for Bay Area Law Firms
Oh wait, I meant that other adjective, "bad."
Headline: "Bay Area Firms See Profits Drop Up to 21%, Revenues Flat"
The lede: "A tanking economy and frozen credit markets struck a double blow to Bay Area-based Am Law 100 firms in 2008, causing slower revenue growth and a drop in profits, according to The Recorder, a sibling publication of The Am Law Daily."
Unfortunately, the original article requires a subscription to The Reporter. But there are interesting tidbits to glean out here. The main takeaway is that gross revenue generally increased in 2008, but not at the double-digit pace anticipated by most firms (at the beginning of the year, anyway). Increased spending to accommodate the non-materializing growth has led to a significant drop in profits per equity partner (PPP). As we know from Heller and Thelen, a collapse in partner profits can lead to a downward spiral, as rainmakers lateral to more profitable firms.
For 3Ls and 2008 grads, this probably means that there is work at bay-area firms--but not necessarily enough for the giant class of 2007 summer associate hires.
Headline: "Bay Area Firms See Profits Drop Up to 21%, Revenues Flat"
The lede: "A tanking economy and frozen credit markets struck a double blow to Bay Area-based Am Law 100 firms in 2008, causing slower revenue growth and a drop in profits, according to The Recorder, a sibling publication of The Am Law Daily."
Unfortunately, the original article requires a subscription to The Reporter. But there are interesting tidbits to glean out here. The main takeaway is that gross revenue generally increased in 2008, but not at the double-digit pace anticipated by most firms (at the beginning of the year, anyway). Increased spending to accommodate the non-materializing growth has led to a significant drop in profits per equity partner (PPP). As we know from Heller and Thelen, a collapse in partner profits can lead to a downward spiral, as rainmakers lateral to more profitable firms.
For 3Ls and 2008 grads, this probably means that there is work at bay-area firms--but not necessarily enough for the giant class of 2007 summer associate hires.
Labels: OCIP/Employment
posted by Carbolic at 8:26 AM
4 Comments:
But see Littler Mendelson.
But Littler had a LONG way to go to try to close the PPP gap (with numbers less than half of most of the other firms on that list).
What are people's thoughts on the economic turndown and bar trips? Is anyone else a bit nervous to blithely skip town and expect your job to wait for you?
Thompson & Knight, Dallas, TX+
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