Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Accounting and Financial Planning for Law FirmsFeaturesLaw Firm FinancialsLaw Firm Management

After Another Big Year, Law Firms Should Plan for Recession

By J. Mark Santiago
June 01, 2022

Looking at the 2021 AmLaw 200 results, overall, the AmLaw 200 did very well last year. Among other benchmarks, the AmLaw 200:

  • Posted the biggest YOY increases in revenue, RPL, and PEP in more than 10 years.
  • Gross revenue increases more than 9%.
  • RPL increased more than 7%.
  • PEP increased by approximately 12%.

While the AmLaw 200 results were quite impressive, 2021 continued the cycle of the AmLaw 100 firms continuing to widen the gap between themselves and the "other" 100.

  • Gross revenue in the AmLaw 100 increased by approximately 15%.
  • RPL in the AmLaw 100 increased by 12.5%.
  • PEP increased by 20%.

Perhaps the most startling measure of the gap was that two AmLaw 100 firms increased their YOY gross revenue by more than the combined increase of all the AmLaw 200 firms.

2022 and Beyond

What might 2022 and 2023 hold? Preliminary Q1 results from the Thompson Reuters LFFI survey reports a strong 2.7% growth in demand. However, the positive growth numbers were offset by significant growth in compensation (13%) and overhead (10%). Indicators point to continued growth in both of those categories over this year and calendar 2023.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.