LexisNexis® CounselLink® simply launched its 2025 Traits Report, now in its twelfth 12 months. It reveals that common legislation agency companion charges continued to rise in 2024 at a charge of 5.1%. This improve is the second highest since CounselLink launched its annual Traits Report in 2013. It’s barely under the speed improve documented the 12 months earlier than, 5.4% in 2023, which was the very best on report, indicating an enormous spike resulting from the Pandemic.
The biggest legislation corporations, with greater than 750 attorneys thought-about Massive Regulation, proceed to command the very best share of pockets within the highest-value apply areas. In 2024, as in 2023, the median companion within the largest legislation corporations billed at a charge that was 61% larger than the median companion within the subsequent tier of corporations, confirming a large charge hole between the most important 100 corporations and the subsequent tier of corporations.
Massive Regulation continues domination in its share of pockets, significantly in two perceived high-value apply areas that marked exponential will increase in median blended common matter charges:
- Mergers & Acquisitions (12.4%)
- Regulatory & Compliance (8.3%).
These two matter classes noticed the median blended common matter charge improve greater than 5% relative to 2023.
The CounselLink traits report attracts on the intensive CounselLink Perception Benchmarking Database of greater than $67 billion in authorized spending throughout greater than 510,000 timekeepers and greater than 1.8 million issues. It offers detailed insights on eight key metrics, together with legislation agency companion charges by agency measurement, hourly charges by apply space, agency measurement and site, and a snapshot of hourly charges in 18 international locations. Considerably, traits report information comes from precise invoices paid to exterior counsel by company authorized.
Different key findings within the report embrace:
- Billing charges for top-tier timekeepers in high-value practices are exceptionally excessive, with some companions charging over $2,300 per hour and high-end associates nearing $2,000 per hour in 2024. Whereas this report emphasizes companion charges as a main benchmark, it’s notable that affiliate charges in 2024 elevated at an excellent larger charge than companion charges. The typical companion charge improve in 2024 within the largest corporations was 7.5%. Within the largest corporations, the common affiliate charge improve was 10.8%. Affiliate and of counsel charges have been growing, on common at the next charge than companion charges for the final a number of years.
- Price will increase are extremely correlated with apply space charges. Legal professionals in practices charging the very best charges in 2024 are typically the identical ones who raised their charges essentially the most on a proportion foundation 12 months over 12 months.
- Massive Regulation elevated market share from 49.0% in 2023 to 49.3% in 2024. Moreover, Massive Regulation elevated its share of latest matter work in 2024 which can be a number one indicator of a future achieve in market share.
- Traits point out that the adoption of different charge preparations (AFA) inside Employment & Labor is rising. In 2024, 28.5% of Employment & Labor issues have been billed below an AFA in comparison with 26.9% in 2023 and 24.7% in 2022. The share of Mental Property issues billed below an AFA is secure in 2024 in comparison with 2023.
- The 61% differential for the most important corporations vs the subsequent tier of corporations is identical as was reported in 2023 however stays the most important hole CounselLink has recorded within the 12 years of monitoring the metric. The differential was 46% for 2022 charges relative to 2021.
- That is the primary 12 months, 2024, the place the median companion charge within the largest tier of corporations exceeds $1,000. For corporations with 750+ attorneys, the median companion charge in 2024 was 6% larger than the median companion charge in 2023.
Many Methods to Analyze Traits Report Information
There are a number of related information factors to contemplate. As readers overview the info and start to match it to their authorized departments, these factors turn out to be extra salient.
For Massive Regulation corporations with the very best market share within the highest-value apply areas, the companion charge on the ninetieth percentile in 2024 was 8% larger than the companion charge on the ninetieth percentile in 2023. This level is critical as a result of it says that these companions who already invoice on the highest charges (very senior companions in practices similar to Mergers & Acquisitions, Regulatory & Compliance, and so on.) can elevate their charges to an excellent larger diploma than different companions. The market is bearing these charge will increase.
On common, companions in corporations with 750+ attorneys elevated their charges by 7.5%, similar to the speed change of the median companion. This was the very best common improve of all of the agency measurement classes. Notably, in 2024, some companions billed hourly charges of greater than $2,300 per hour. Observe that the common is barely lower than what was reported in 2023 (7.9%), which was the very best common improve on report.
Ideas to Contemplate
Many organizations are publishing traits reviews about excessive companion charges. We’ve seen an explosion of reviews during the last a number of years. The numerous issue for the LexisNexis CounselLink Traits Report after 12 years is how the info is compiled. Utilizing the CounselLink Insights Benchmarking Database, Kris Satkunas, who has authored every annual report, takes precise invoices paid by corporate authorized to legislation corporations. The numbers are extremely correct and supply an actual snapshot of the standing of companion charges in high-value apply areas.
The information begs the questions: What can authorized departments do in regards to the rising companion charges, AND do they wish to deal with the problem or proceed to pay?
There are a number of apply areas, detailed within the Traits Report, exploring the advantages of different charge preparations. (You may study extra about them by downloading your copy of the 2025 Traits Report.) Why aren’t extra apply space leaders in company demanding a charge association? It appears that evidently company demand for high-rate companions as exterior counsel just isn’t waning. The truth is, the most important legislation corporations of 750+ attorneys proceed to capitalize on that demand to keep up command of share of pockets.
Benchmarking exterior counsel charges inside apply areas is a primary step in higher understanding of the place your authorized division is positioned with exterior counsel hiring and illustration. Contemplate talking with Kris Satkunas, Director of Strategic Consulting, with LexisNexis CounselLink. Her experience is in using information evaluation to tell strategic decision-making. Learn more during a conversation.
The LexisNexis CounselLink 2025 Traits Report: Benchmark Metrics to Empower Authorized Price Administration, now in its twelfth consecutive 12 months, is available here.
