In The News: U.S. Large Law Firms, As A Whole, Saw Net Income Go Up In 2020 During The Pandemic After Discretionary Cuts, With Many Partners Taking Cuts Averaging 15% Of Their Draws

For 2021, Net Income For Firms Still Predicted To Go Up.

            Although the COVID-19 pandemic certainly has affected the U.S. law industry, some recent reports suggest that its impact was not as bad as feared, according to some articles on the February 3, 2021 on-line edition of the ABA Journal.

            U.S. law firms cut overhead such that larger law firms had a net income average growth spurt of 9.9% (an 11.2% growth in profits per equity partner).  However, a Law360 release, looking at data between September 1-October 16, 2020 for firms with at least 25 attorneys, found that 43% of the partners took pay cuts, with the pay cut being a median 15% in amount.

            In 2021, U.S. law firms are expecting an average 3.5% growth in revenues.