Half of US top earners in profits limbo

Figures compiled by The American Lawyer show that only five of the 10 leading firms by profits per partner saw partners earning more in 2000 than in 1999.
Profits at New York firms Wachtell Lipton Rosen & Katz, Sullivan & Cromwell and Cahill Gordon & Reindel all fell, down 2.9 per cent, 4.1 per cent and 5.9 per cent respectively.
Skadden Arps Slate Meagher & Flom, the firm with the highest revenue in the country, saw profits stay the same as the previous year's. Minneapolis firm Robins Kaplan Miller & Ciresi, the second most profitable firm in the country, by virtue of its premium billing product liability practice, saw profits per partner dip by 8.7 per cent.
Most firms saw gross revenues increase by more than 10 per cent though, so the collapses in profits are being blamed on last year's dramatic increases in associate compensation.
Jerry Kowalski, head of New York recruitment consultants Kowalski & Associates, said: "The biggest inroad into profitability is labour costs. The average mid-level associate at Wachtell is making more money than most partners in firms below The American Lawyer's top 25."
Firms outside the top 10 were also hit, including New York's Debevoise & Plimpton, where profits per partner fell by 0.1 per cent to $1.225m (£870,000), and Los Angeles firm Latham & Watkins, where profits per partner dropped 1.5 per cent to $990,000 (£707,000). Willkie Farr & Gallagher was the only other top 30 firm to suffer, seeing profits per partner drop 7.8 per cent to $1.015m (£750,000).
Firms that had particularly good years included New York's Shearman & Sterling, which saw profits per partner rise 18.9 per cent to $1.35m (£964,000) and revenues 20.3 per cent to $590m (£420m), and San Francisco's Brobeck Phleger & Harrison, which increased revenues by 51.7 per cent to $476m (£340m).

Ranking by profits per partner
Rank	Firms	Rank by no of lawyers	Profits per partner from 1999	Change in profits	No of lawyers	No of equity partners
1	Wachtell, Lipton Rosen & Katz	100	$3,285,000	-2.9%	146	72
2	Robins, Kaplan, Miller & Ciresi	98	$2,790,000	-8.7%	220	63
3	Cravath, Swaine & Moore	87	$2,245,000	6.4%	344	80
4	Davis Polk & Wardwell	39	$1,740,000	8%	535	138
5	Simpson Thatcher & Bartlett	40	$1,740,000	5%	533	127
6	Sullivan & Cromwell	46	$1,715,000	-4.1%	495	127
7	Cahill Gordon & Reindel	99	$1,610,000	-5.9%	203	53
8	Skadden Arps Slate Meagher & Flom	2	$1,600,000	0%	1441	302
9	Milbank, Tweed, Hadley & McCloy	64	$1,450,000	13.8%	419	91
10	Kirkland & Ellis	27	$1,400,000	4.4%	662	128

Ranking by gross revenue
Rank 2000	Rank 1999	Firm	Gross revenue	Change from 1999	No of lawyers	No of equity partners
1	1	Skadden, Slate Meagher & Flom	$1,154,000	12.6%	1,441	302
2	2	Baker & McKenzie	$940,000,000	14.9%	2,721	566
3	3	Jones Day Reavis & Pogue	$675,000,000	13.4%	1,298	291
4	4	Latham & Watkins	$642,500,000	10.5%	951	288
5	5	Shearman & Sterling	$590,000,000	20.3%	805	163
6	7	Mayer, Brown & Platt	$533,500,000	15%	853	324
7	8	Davis Polk & Wardwell	$525,000,000	14.1%	535	138
8	6	Sullivan & Cromwell	$516,5000,000	9%	495	127
9	13	Morgan Lewis & Bockius	$515,500,000	20%	999	230
10	11	Weil Gotshal & Manges	$505,500,000	15%	750	170