August 22, 2006
Leverage Rules When It Comes to Partner Earnings
A picture says a thousand words. The above chart based on a soon to be released Juris, Inc. survey of 2005 law firm financial performance confirms, once again, the important role that leverage plays in determining law firm partner earnings. The first quartile represents the top 25 percent of midsized law firms as measured by per-partner income. The first quartile earned more than twice the per-partner income of the next highest group. That top segment of law firms earned more than eight times that of the lowest quartile.
By now, the impact of leverage in determining per-partner earnings is well known and understood. So, it is surprising that 75 percent of midsized law firms are not successively implementing the strategy.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
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Filed under Compensation, Law Firm Bus Model, Leverage by Tom Collins