There is good news for the Am Law 50 and mixed news for the broader industry in the 2013 results. Though the industry’s 2013 profits per equity partner (PPEP) growth of 3.5 percent fell short of 2012’s 4.3 percent increase, it’s a solid result, given the challenging demand environment we saw last year. Am Law 1–50 firms outperformed other segments in net income and PPEP growth and improved on their 2012 results. Firms with a large international presence outperformed the more U.S.–centric firms, with global firms, in particular, seeing the highest growth in profitability. The better news is that relative to the prior year, demand momentum picked up as 2013 progressed, and given positive economic indicators, we project that 2014 will be a stronger year for the legal industry than 2013.
