Jenner & Block's Revenue Slips for Third Straight Year as PEP, RPL Rebound
The firm's financial fortunes have taken a number of turns over the past five years.
March 05, 2019 at 01:36 PM
4 minute read
Revenue at Chicago-based Am Law 100 firm Jenner & Block slipped in 2018 for the third straight year, but the firm's decreasing head count helped bolster financial metrics including revenue per lawyer and profits per equity partner.
Jenner's revenue last year of $441.3 million was down 1.7 percent from the year prior, according to preliminary data from ALM. The firm also saw its head count drop 8.1 percent last year to 467 lawyers. That dynamic helped revenue per lawyer rise 6.9 percent to $945,000.
The firm increased its profits per equity partner by 6.3 percent to $1.5 million. That rise was helped by a significant drop in the firm's number of nonequity partners and the total amount of compensation they received in 2018.
The firm's nonequity partner count fell by 17 lawyers to 100 partners, a nearly 15 percent decline. The firm's equity partner ranks shrank by 1.8 percent, or 2 partners, to 109 lawyers. Nonequity partners in 2018 were paid, as a group, about $16.6 million less than in 2017. Meanwhile, the firm's equity partners increased their profit pool by about $8.2 million from the prior year.
The head count declines were a reversal from recent years at Jenner, known for its litigation chops. Jenner's roster of lawyers had grown by more than a quarter from 2014 to 2017. But that head count growth had not been accompanied with corresponding revenue increases.
Terrence Truax, the firm's managing partner, said the head count declines last year were not the result of a focused pruning of any particular practice groups. Still, he said the firm's results in 2018 reflected “very strong internal management that we have exercised.”
“We have worked very diligently to manage our firm in order to make sure we have the right scale and the right lineup to deliver this very high-end set of services that we want to be delivering to our clients,” Truax said in an interview. “That's what we've done, and we're continuing to engage in that.”
Truax said the firm had maintained its long-term commitment to pro bono work over the past year, with 100 percent of the firm's lawyers spending 20 hours or more on free legal representation. The firm has topped The American Lawyer's pro bono rankings nine times, including last year.
Jenner this year named Craig Martin as the firm's new chairman. That role had been left vacant when Anton “Tony” Valukas stepped down in April 2017. Martin had already served as the head of the firm's litigation practice, which accounts for roughly two-thirds of Jenner's lawyers.
Jenner's financial fortunes have taken a number of turns over the past five years.
Following a weak 2013 that saw revenue fall nearly 8 percent, the firm saw back-to-back years of 14 percent revenue growth in 2014 and 2015. In 2015 in particular, the firm's top-line figure reached a record high of $465 million and PEP soared to $1.72 million. Those years' financials were buoyed by big-ticket investigations including those over ignition failures at General Motor Corp. and independent monitor assignments for Citigroup Inc. and Credit Suisse AG.
Since that 2015 high, Jenner's revenue has dipped 5 percent and its PEP has fallen 14 percent. But in a longer time period, since the 2013 low, the firm's revenue and PEP are both up nearly 25 percent. Truax said he was pleased with the firm's longer-term financial growth, but said the firm aspired to do better more recently.
“Our goal is to deliver this high-end product to our client base, and we think we are doing that and think we can continue to do better at it, frankly,” Truax said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFrom ‘Deep Sadness’ to Little Concern, Gaetz’s Nomination Draws Sharp Reaction From Lawyers
7 minute readDechert 'Spark Tank' Competition Encourages Firmwide Innovation Focus
Akerman Opens Charlotte Office With Focus on Renewable Energy, Data Center Practices
4 minute readTrending Stories
- 1Free Speech Causes a Neighborly Feud
- 2Read the Document: 'Google Must Divest Chrome,' DOJ Says, Proposing Remedies in Search Monopoly Case
- 3Voir Dire Voyeur: I Find Out What Kind of Juror I’d Be
- 4When It Comes to Local Law 97 Compliance, You’ve Gotta Have (Good) Faith
- 5Legal Speak at General Counsel Conference East 2024: Virginia Griffith, Director of Business Development at OutsideGC
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250