Law firm financial information
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Turnover gives you an idea of the size of the firm; generally, the bigger the turnover, the bigger the firm. If you compared the number of lawyers with the turnover of firms, you should expect to see a correlation between them. If a firm is bucking this trend, you may want to investigate further as to why. For example, maybe they do disproportionately well or badly, or maybe they are doing higher or lower value work. Turnover may also be a good way to look at which firms are direct competitors. Make sure you check whether the figure listed is for the UK or international operation of the firm. Don’t compare apples with pears!
Generally speaking, the bigger, more profitable firms pay more, but that’s not the end of it. For instance, US firms in London often have an established ‘going rate’ that comes from the United States, which means that they may pay more than UK headquartered firms. Remember also that firms don’t pay these figures for fun. They want hard work back from you – maybe more than you are comfortable with – so it doesn’t hurt to explore billing/hourly targets as well.
Profits per equity partner (PEP)
This figure is simply the total profits divided by the number of (usually equity) partners. It’s not what they take home – some monies will inevitably be reinvested in the business and there are lots of ways for organisations to spend (or influence perceptions of) profits. Massive profits may also mean that everyone else is paid a pittance. In other words, PEP is a good indicator of firm success and affluence, but is not wholly reliable. Look deeper!
Disclaimer: While we make every effort to ensure that information on LawCareers.Net is correct, we cannot take responsibility for any inaccuracies. The site relies on information supplied by individual organisations which are sent written confirmation of the information that we hold on them and will be publishing. Organisations have the opportunity to update their information at any time. If a firm does not appear on a specific Insights graph it is because we do not hold the relevant data for that firm.