Hourly Rate Gap Between Top, Mid-tier Firms Widens

The top law firms have increased equity partners’ hourly rates by 3.9 percent to an average rate of $1,085, according to a study by Wells Fargo Private bank. That’s more than the average 3.4 percent increase at law firms in the AmLaw 100, whose average rate reached $875. The average increase for equity partners in mid-tier firms was 2.3 percent, for an average hourly rate of $650. The $400 gap between top- and mid-tier firms is “huge,” said Jeff Grossman, senior vice president at Wells Fargo Private Bank’s legal specialty group. “At many of those firms, there aren’t a lot of distinguishing factors,” he said. “They’re not known as the best IP or private equity firm, for example. They tend to be full service, with diversified practices, and that’s where we’re seeing the most compression.”