Saturday, October 13, 2012
Bruce MacEwen of the legal consulting firm Adam Smith, Esq. talks to Bloomberg Law in this video interview in which he discusses many of the structural problems facing large law firms today including excess capacity (i.e. too many lawyers chasing too few clients), the high carrying cost of associates (more lay-offs may be ahead), the risk of "department store" pricing (where some firms slash prices just to get business) and the increasing threat posed by legal process outsourcing companies (which have grown at an exponential rate the past few years).
One of the most telling observations offered by Mr. MacEwen is that 25 years ago, the typical AmLaw 100 partner earned eleven times the salary of the average American worker. Today. that differential has increased by a factor of twenty five. As Mr. MacEwen says, such growth is simply unsustainable and thus an industry wide price restructuring is inevitable.
Hat tip to ATL.