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Senior Partners Approach $3,000 an Hour, As More Billing Rate Hikes Expected

https://www.law.com/americanlawyer/2024/09/24/senior-partner...
Irradiated dilemma
  10/11/24
Love to see it!
ocher immigrant psychic
  10/11/24
A lot of this is the same thing we see everywhere in the eco...
spectacular center
  10/11/24
Not sure what shit firm you are at but at K&E the first ...
bisexual insanely creepy boistinker
  10/11/24
Yes on the discounts. Big clients want 20% discount plus MFN...
Racy Green Voyeur
  10/12/24
Many of these rates are billed out at rack in the V25. Mayb...
up-to-no-good bbw
  10/12/24
Sounds more like V10 than V25 tbh, but no hate for people ta...
Racy Green Voyeur
  10/12/24
I'd originally written V10 then changed it to V25. Not sure...
up-to-no-good bbw
  10/12/24
Hopefully makes it easier for those of us fighting for scrap...
Racy Green Voyeur
  10/12/24
The thinking is just 'We deserve to be filthy rich too just ...
razzmatazz church really tough guy
  10/11/24
push it until they refuse
dashing kitty cat partner
  10/11/24
...
razzmatazz church really tough guy
  10/11/24
...
Racy Green Voyeur
  10/12/24
any idiot can do finance. you need a law license to do BI...
orchid laughsome mother stage
  10/11/24
*responds "yes" to one email* *bills out 1/10th...
orchid laughsome mother stage
  10/11/24
think of all the years of training and experience and schola...
Razzle Misunderstood Legend
  10/11/24
...
floppy hateful black woman
  10/11/24
...
orchid laughsome mother stage
  10/11/24
...
purple fragrant sanctuary private investor
  10/11/24
...
splenetic quadroon crackhouse
  10/12/24
*works 20 hours in a day in days preceding closing* *has ...
razzmatazz church really tough guy
  10/11/24
...
Adventurous Abusive Theatre Rigpig
  10/11/24
don't you mean *works 10 hours a day preceding closing* ...
orchid laughsome mother stage
  10/11/24
I mean more like *is at the office for 20 hours handling...
razzmatazz church really tough guy
  10/11/24
Lawyers should be banned from being politicians or voting im...
Cowardly titillating piazza laser beams
  10/11/24
Im gay
magenta diverse milk
  10/11/24
Lawyers should just work 10 hours a month and make $30,000 f...
razzmatazz church really tough guy
  10/11/24
Meanwhile this 44 year old former Susman turned PI king is a...
iridescent faggot firefighter temple
  10/12/24
Is your friend a Mormon?
startling station
  10/12/24
No but I know him too
iridescent faggot firefighter temple
  10/12/24


Poast new message in this thread



Reply Favorite

Date: October 11th, 2024 3:32 PM
Author: Irradiated dilemma

https://www.law.com/americanlawyer/2024/09/24/senior-partners-approach-3000-an-hour-as-more-billing-rate-hikes-expected-in-2025/?slreturn=20241011152802

Some Am Law 50 firms will increase billing rates substantially in 2025, with expectations that some senior partners will approach $3,000 an hour and more associates will bill over $1,000 an hour.

More demand in M&A and transactional practices, as well as law firm mergers and increasing demand to pay top-performing talent, are pushing billing rates higher, some observers say.

According to data from Valeo Partners, which analyzes public disclosure documents to discern upcoming rate changes, senior partners at "a few firms" will have standard rates approaching $3,000, and a few might exceed that marker.

Valeo Partners declined to name the firms. However, some recent bankruptcy fee packages reveal some firms are close to the $3,000 mark already. Wilson Sonsini Goodrich Rosati billed $2,720 an hour this year for top partners in the Rite-Aid bankruptcy. McDermott Will & Emery was charging top partners out at $2,590 hourly at the end of 2023 in the Mountain Express Oil Co. bankruptcy.

More firms will reveal their 2025 rate increases in bankruptcy court toward the end of the year.

In the Am Law 25 to 30 as a whole, Chuck Chandler, the CEO of Valeo Partners, projected that in 2025, there will be standard rate increases of about 10% to 13%.

The expected rate hikes represent an increase from 2023, when a cohort of 10 Am Law 50 firms announced rate increases of between 8% and 10% in bankruptcy court filings. The same group of firms raised rates between 10% and 15% in early 2023.

Standard billing rates are expected to increase in the Am Law 50 to $2,100 for senior partners and $1,900 for partners, per the Valeo data.

Rate increases are projected to be highest amongst senior partners, or those who have 25 years or more since their law school graduations, according to Chandler. Nine of the Am Law 50 firms currently have senior partner standard hourly rates of around $2,400 to $2,875, while 17 will be in that range by 2025, he said.

At the same time, discounts are not expected to increase, but, instead, will stay steady at around 12% to 13%, according to Valeo.

For associates, rate increases will be more notable among third-years. Currently, 16 of the Am Law 50 firms have third-year associates with rates over $1,000, but Valeo projects around half of the Am Law 50 to have rates of over $1,000 amongst this group by 2025.

Billing rates for first-year associates are approaching $1,000 at a handful of firms, with Paul, Weiss, Rifkind, Wharton & Garrison charging a minimum of $895 for associates in 2024, bankruptcy records show. Sullivan & Cromwell charges nearly as much—$850 hourly—for first-years.

Sullivan & Cromwell and Paul Weiss also have among the top rates for senior associates, with associates maxing out at $1,575 at Sullivan & Cromwell and $1,560 at Paul Weiss.

Some of the rate increases won't even wait until 2024 — they are happening next month. Two large law firms in the Am Law 30, along with four other firms in the Am Law 200, will change their firm-wide hourly rates effective October 1, 2024, Chandler said, again declining to name which ones.

Overall, rate hikes will be most dependent "on what happens with M&A, because that's going to be a huge driver" of rate increases, said Chandler in an interview.

A spate of law firm mergers could also contribute to rate increases into next year, he said. As it stands, more law firm mergers, both domestically and across borders, are expected into 2025, as firms compete harder than ever to scale.

Along similar lines, the cost of talent is also driving the billing rates calculus, as Big Law firms have zeroed in on high-profile, money-making lateral partners in 2024. Jennifer McIver, director of legal operations/industry insights for ELM Solutions and author of a report this month about law firm rate increases, noted the projected rates for partners and associates are not a surprise because of the cost now to retain and attract talent.

"In order to keep that profit margin you're going to have to have that retention [of talent], and the more people are willing to pay for it, the law firms are going to push for that," she said.

She said whether that trend breaks depends, at least in part, on whether corporate legal departments begin moving even more work to lower-cost firms or ask their firms to cap things like the rates they can charge for their associates' time. "So, it comes down to that push and pull," she said.

2024 Rate Growth

Firms are building off their rate hikes in the last year. According to Wells Fargo Legal Specialty Group's survey data, average standard rates rose by 8.8% year-over-year in the first half of 2024.

Rate growth continues to be the primary contributor to revenue growth, the bank said in August.

The report this month from Wolters Kluwer ELM Solutions also noted the median billing rate increase across the industry last year jumped from 1.9% to 4.0%, and that halfway through 2024, high-priced practices like finance and securities, real estate and corporate had notched mean rate increases of over 8%. The bankruptcy and collections practice area is trending with the highest increase, with a 2024 year-to-date mean rate increase of 10.4%, according to the report.

While there are "early signs" the pace of billing rate hikes writ-large may slow due to more active client pushback and transactional uncertainty, according to another report last week, firms may also become even more reliant on those rates to maintain profitability in the event of an economic slowdown.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187799)



Reply Favorite

Date: October 11th, 2024 3:35 PM
Author: ocher immigrant psychic

Love to see it!

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187813)



Reply Favorite

Date: October 11th, 2024 3:42 PM
Author: spectacular center

A lot of this is the same thing we see everywhere in the economy, from buying a toothbrush at the grocery store to an appliance on Amazon to a car: The seller (in this case, the law firm), jacks up the prices, then offers a big discount. I suspect the average biglaw client pays something like 80% of rack rates or less.

Additionally, this is looking at the highest rate at those firms. Often that someone unusual, like a former SEC chair or the firm's number one bankruptcy guy. The median 20th year partner is often at 50% of those rates.

Nonetheless, the bottom line here is LJL.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187834)



Reply Favorite

Date: October 11th, 2024 4:53 PM
Author: bisexual insanely creepy boistinker

Not sure what shit firm you are at but at K&E the first years are around $900/hr.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188054)



Reply Favorite

Date: October 12th, 2024 11:00 AM
Author: Racy Green Voyeur

Yes on the discounts. Big clients want 20% discount plus MFN. Then a lot have volume discounts, too, that end up applying a further blanket 10-20% discount once they hit an annual threshold. Small clients can’t pay rack or their matters don’t justify it so they get discounts and a lot of time gets written off. It’s retard law students and junior lawyers who bitch that the firm makes “8x” their salary plus bonus off their work.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189853)



Reply Favorite

Date: October 12th, 2024 11:01 AM
Author: up-to-no-good bbw

Many of these rates are billed out at rack in the V25. Maybe a very small volume discount (tiered, less than 10%, often less than 5%, even in the highest tier).

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189855)



Reply Favorite

Date: October 12th, 2024 11:07 AM
Author: Racy Green Voyeur

Sounds more like V10 than V25 tbh, but no hate for people taking what they can. This does not work in the V50 with more regional clients or scraps from bigger clients - we’re discounting like crazy for them.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189868)



Reply Favorite

Date: October 12th, 2024 11:08 AM
Author: up-to-no-good bbw

I'd originally written V10 then changed it to V25. Not sure exactly how far it goes down but it goes some ways. You'd be surprised at how ballsy partnerships at the top are getting right now, they're basically telling F100 companies and equivalent privatecos "We don't discount, take it or leave it." While charging astronomical rates.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189873)



Reply Favorite

Date: October 12th, 2024 11:46 AM
Author: Racy Green Voyeur

Hopefully makes it easier for those of us fighting for scraps like their smaller M&A and rando corporate work. They demand discounts from us, though. The RFP process is humiliating.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189974)



Reply Favorite

Date: October 11th, 2024 3:44 PM
Author: razzmatazz church really tough guy

The thinking is just 'We deserve to be filthy rich too just like guys in finance. We work just as hard and attract top graduates and talent and that's the new deal.'

I can't say I disagree with that approach.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187841)



Reply Favorite

Date: October 11th, 2024 3:50 PM
Author: dashing kitty cat partner

push it until they refuse

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187851)



Reply Favorite

Date: October 11th, 2024 4:05 PM
Author: razzmatazz church really tough guy



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187903)



Reply Favorite

Date: October 12th, 2024 11:46 AM
Author: Racy Green Voyeur



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189977)



Reply Favorite

Date: October 11th, 2024 4:08 PM
Author: orchid laughsome mother stage

any idiot can do finance.

you need a law license to do BIGLAW.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187911)



Reply Favorite

Date: October 11th, 2024 4:09 PM
Author: orchid laughsome mother stage

*responds "yes" to one email*

*bills out 1/10th of an hour*

*client bill = $300 with 10% discount*

oh, the scholarship!

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187916)



Reply Favorite

Date: October 11th, 2024 4:26 PM
Author: Razzle Misunderstood Legend

think of all the years of training and experience and scholarly analysis and perfectly-tuned legal judgment that went into that "yes" though. really you're getting a bargain if anything

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187953)



Reply Favorite

Date: October 11th, 2024 4:33 PM
Author: floppy hateful black woman



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187979)



Reply Favorite

Date: October 11th, 2024 4:49 PM
Author: orchid laughsome mother stage



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188035)



Reply Favorite

Date: October 11th, 2024 6:12 PM
Author: purple fragrant sanctuary private investor



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188396)



Reply Favorite

Date: October 12th, 2024 10:13 AM
Author: splenetic quadroon crackhouse



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189754)



Reply Favorite

Date: October 11th, 2024 4:32 PM
Author: razzmatazz church really tough guy

*works 20 hours in a day in days preceding closing*

*has client bitch about charging for an email*

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48187975)



Reply Favorite

Date: October 11th, 2024 4:49 PM
Author: Adventurous Abusive Theatre Rigpig



(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188031)



Reply Favorite

Date: October 11th, 2024 4:50 PM
Author: orchid laughsome mother stage

don't you mean

*works 10 hours a day preceding closing*

*bills 20 hours a day for said work*

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188038)



Reply Favorite

Date: October 11th, 2024 4:52 PM
Author: razzmatazz church really tough guy

I mean more like

*is at the office for 20 hours handling 40 different things before closing and there are a couple hours of down time here and there in 5-10 minute increments*

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188044)



Reply Favorite

Date: October 11th, 2024 4:57 PM
Author: Cowardly titillating piazza laser beams

Lawyers should be banned from being politicians or voting imho

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188072)



Reply Favorite

Date: October 11th, 2024 6:05 PM
Author: magenta diverse milk

Im gay

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188372)



Reply Favorite

Date: October 11th, 2024 6:20 PM
Author: razzmatazz church really tough guy

Lawyers should just work 10 hours a month and make $30,000 for the month. Squeeze it into one day and take the rest of the month off.

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48188407)



Reply Favorite

Date: October 12th, 2024 11:24 AM
Author: iridescent faggot firefighter temple

Meanwhile this 44 year old former Susman turned PI king is approaching his first billion according to my buddy who works with him.

https://www.arnolditkin.com/meet-our-attorneys/kurt-arnold/#~748ec406-6052-49e1-8ccd-91f59169ecf1

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189916)



Reply Favorite

Date: October 12th, 2024 11:51 AM
Author: startling station

Is your friend a Mormon?

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48189988)



Reply Favorite

Date: October 12th, 2024 1:04 PM
Author: iridescent faggot firefighter temple

No but I know him too

(http://www.autoadmit.com/thread.php?thread_id=5610145&forum_id=2#48190193)