After Months Of Doom & Gloom, Maybe Biglaw Firms Still Made Massive Profits In 2022
Financially suffering law firms may be the exception rather than the rule.
After some high-profile layoffs and some sneaky stealth layoff shenanigans, the legal industry overall seems calm and steady. Predictions of a coming layoff storm abound, but like the surprise over the last jobs report, maybe economic turmoil is mostly a fiction outside of the tech sector and firms with a diversified practice aren’t going to end up suffering much.
We’re already hearing little leaks from firms about the final 2022 numbers and while there are going to be some elite firms taking a hit, there’s been a little more good news than bad so far.
For example, Paul Hastings boasted $4.7 million in profits per equity partner in 2021 and just told Bloomberg that its profits were UP in 2022. They weren’t alone:
Vinson & Elkins’ chair Keith Fullenweider and vice-chair Jim Fox told Bloomberg Law in November that the firm’s financial performance was “trending positive” for the year. Baker Botts recently said it beat its 2021 gross revenue figures by 4%, according to the American Lawyer.
We’re still several weeks away from the release of the Am Law 100, the best (if not universally trusted) peek at the financial health of top law firms, but this year’s report seems likely to be the most fascinating in years with a genuine split between the 2022 haves and have-not-quite-as-muches.
Maybe 2022 turns out to be a crazy blip where everyone’s revenue numbers get tossed in the air. But it also might be an inflection point where some firms distinguish themselves for adapting to the post-pandemic business climate better than the rest.
Paul Hastings Sees Profits Rise, Despite Tightening Market [Bloomberg Law]
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.
