The firms that appear in the 2015 Global 100 are the largest 100 law firms in the world ranked by revenue.
FINANCIAL YEAR-END
Financial data shown is for the last financial year – either calendar year 2014 or 2014/15. Financial years differ – most end in December in the US, and in April in the UK.
Legal Business takes the compilation of the Global 100 very seriously. We make every effort to ensure that the figures we publish are accurate and precise. The overwhelming majority of firms co-operate fully with us in this regard by providing us with the required information. Some firms choose not to co-operate officially with our data collection process and in these circumstances we rely on figures given to us by trusted but anonymous sources.
Firms with a † symbol next to their name chose not to provide any financial information.
DEFINITIONS
Turnover/revenue
Revenue figures do not include VAT, disbursements, interest or anything other than the worldwide fees generated by lawyers for their work during the last financial year.
Headcount
Total lawyer numbers include partners, trainees, assistants, associates, of counsel and all other fully qualified lawyers but do not include legal executives, paralegals or other support staff. Reflecting standard reporting practice in the US, firms have been asked for full-time equivalent lawyers over the financial year.
Equity partners
We define full equity partners as partners that are full participants in the firm’s profits.
Non-equity partners
Non-equity partners, be they fixed-share, salaried, or laterals on probationary periods, are those that are not full participants in the firm’s profits, though they may have voting rights.
Net income
We define net income as the total profits that are available to be shared among all the equity partners. We treat profit sharing with non-equity partners as an expense, and it is therefore not included in the net income figure.
Profit per equity partner (PEP)
We calculate PEP by dividing net income by the average number of full equity partners over the year.
Revenue per lawyer (RPL) and profit per lawyer (PPL)
RPL is calculated by dividing turnover by the total number of lawyers. PPL is calculated by dividing net income by the total number of lawyers.
Profit margin
Profit margin is net income as a percentage of turnover.
Turnover change 2010-15
This figure is straight percentage increase in revenue between the 2009/10 financial year and the 2014/15 financial year.
EXCHANGE RATES
We have used annual average exchange rates for 2014 given by the US Federal Reserve for any currency conversions.
- £1 equals $1.6484.
- €1 equals $1.3297.
- AUS$1 equals $0.9034.
All year-on-year and five-year revenue and profitability percentage changes are based on figures reported in dollars for the relevant years, which may not be an accurate reflection of how a firm has performed in its home currency during the same period.
FOOTNOTES
- Baker & McKenzie has a different year end to most Global 100 firms. Figures included here apply to the year ending 30 June 2014.
- The UK headquartered firms – at the time of going to press, these firms had not finalised and audited their LLP accounts and these figures are subject to fluctuation. See the Legal Business 100 in September for the precise figures and year-on-year percentage changes.
- Morgan, Lewis & Bockius acquired the bulk of the US business of Bingham McCutchen at the end of 2014. The headcount data and financial information do not include the additions from Bingham.
- Dentons – turnover figures provided for the firm are global, based on the international LLPs combined. Profit calculations are based on data for the US LLP only.
- Squire Sanders and Patton Boggs merged in June 2014, as such there is no year-on-year comparison for key financial metrics.
- FIDAL – this firm does not operate a conventional equity partnership but comprises 617 shareholders, each of whom are paid a salary. These we classify as partners for the purposes of this survey. Of these, 84 individuals (including managing partners, regional directors, department directors and technical directors, earn an average of €340,000 – we classify these as equity partners for the purposes of this report.
- Allens – Australian law firms have a year-end of 30 June. As such, figures in this report refer to financial year end of summer 2014.