Highlights from the 2010 Law Firm Survey
 |
By David Roberts |
| Publication Date: Winter 2010 | |
 Download PDF |
|
The 2010 RBZ Law Firm Compensation, Billing Rate and Benefits Survey (published annually) collected data from over 174 Southern California Law Firms this year, including data on over 8,100 attorneys and more than 8,200 non-attorney staff, and includes information on over 100 positions (attorney and non-attorney). The Survey summarizes the data collected and presents it by firm size and location and in many cases, by practice area. Most data is current as of July 1, 2010, and all individual firm responses are, of course, kept strictly confidential. Following are some of the highlights from the 2010 Survey.
General
With respect to compensation, there is a fairly consistent pattern across many categories, though certainly not all. In general, total compensation increased between 2008 and 2009, and is now returning to levels at or slightly above the 2008 figures. In addition, despite the current status of the economy, it appears most firms are continuing to pay bonuses to staff, associates and managers.
Partners
The average equity partner billing rate increased 5.3% to $501 in 2010 from $476 in 2009. Analysis of rates by area of practice show the highest average rates are Environmental Law ($580) and Family and Entertainment Law (both $575), while the lowest rates are in Workers Compensation ($170) and Municipal Law ($208).
The average billable hours for all partners, regardless of size of firm or practice area, declined approximately 3.4% from 2009 from 1,720 to 1,661.
Associates
The average base salary for an associate, regardless of firm size or practice area, is $160,103 for 2010, just slightly less than the 2009 average of $160,438. However, the average associate bonus dropped almost 16% from $17,720 to $14,889 in 2010.
Associate billing rates (average for all class years and all firm sizes) increased a very modest 0.9% to $321 from the 2009 rate of $318. For the first time since 2006, Bankruptcy Law does not lead the group with the highest billing rate. In 2010, Environmental Law is at the lead with an average billing rate of $405. The lowest average rates are in Insurance Defense at $170.
Data on 1,328 associates reflects that average billable hours for associates have changed little since 2008, with hours being 1,862 in 2008, 1,873 in 2009 and 1,868 in 2010.
Staff
At the Manager level, some positions have fared well, particularly Director of Administration and CFO, which have made total compensation gains of 5.8% and 18.5% respectively. Overall, however, while 2009 showed significant salary and bonus increases over 2008, in 2010 the numbers have dropped, settling at or near 2008 figures. For example, Executive Directors (average for all firms, regardless of size or location) saw an increase in total compensation of 19% from 2008 to 2009, followed by a 16% decrease in 2010. Likewise, Marketing Directors experienced an increase of approximately 15% from 2008 to 2009, but a 12.5% decrease between 2009 and 2010 figures.
Legal Assistants, both exempt and non-exempt, have fared well over the past few years. Total compensation has increased – if not significantly, at least steadily – although the ratio of compensation and bonuses has shifted a bit. The bottom line is a continuing increase in compensation.
Overall, salaries and bonuses for non-managerial administrative staff (i.e., clerks, receptionists and secretaries) have remained stable since 2008, with modest annual increases from year to year. Bonuses for most administrative positions have hovered in the range of 4% of the base salary for 2010. This is a slight drop from 2009 figures of 1% or so, remaining close to 2008 levels.
The Survey results are consistent with our observations of the Southern California legal profession. Most firms are taking the conservative approach of maintaining base salaries at 2008 levels, and are rewarding associates and staff with bonuses instead. There is an overall feeling of cautious optimism.
