What Does Profits Per Partner Mean?

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puppylaw
Posts: 75
Joined: Mon May 04, 2009 1:53 pm

What Does Profits Per Partner Mean?

Postby puppylaw » Mon Oct 01, 2012 11:29 pm

What exactly does profits per partner mean? The chart below lists, for example, Wachtell's PPP at $4.5 million. Does this mean that the average partner at Wachtell made $4.5 million last year, in take home pay? Most Big Law firms have PPP's around $500 thousand-$1 million. Does that mean the average partner at most big law firms makes that much?

http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202571229443&slreturn=20120901233011

LawIdiot86
Posts: 1159
Joined: Tue Nov 15, 2011 5:21 pm

Re: What Does Profits Per Partner Mean?

Postby LawIdiot86 » Mon Oct 01, 2012 11:38 pm

puppylaw wrote:What exactly does profits per partner mean? The chart below lists, for example, Wachtell's PPP at $4.5 million. Does this mean that the average partner at Wachtell made $4.5 million last year, in take home pay? Most Big Law firms have PPP's around $500 thousand-$1 million. Does that mean the average partner at most big law firms makes that much?

http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202571229443&slreturn=20120901233011


No, it's the total profits over the total number of partners. Very few partners make exactly the PPP because older equity partners make a lot more than junior non-equity partners. It's even less useful than a GPA curve's mean.




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