2016 Real Rate Report Summary Of Rate Trends - Typepad

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2016 Real RateReport in BriefA Summaryof LawyerRate Trends

TABLE OF CONTENTSRebounding Growth 3Lawyer Rate Changes in Major US Cities 4Going Deeper on Specific Markets 5About Us 6The Real Rate Report is an analysis of law firm rates, matter staffing, and law firm billing behaviors over time.The 2016 Real Rate Report is a joint publication from ELM Solutions and CEB based on ELM’s LegalVIEW database of millions of contributedlegal invoices.The data analyzed contains: 19.6 billion in paid fees,More than 5,900 US law firms,More than 85,900 law firm associates,More than 60,700 law firm partners,57.7 million invoice entries, andMore than 300 North American cities. 2016 CEB. All rights reserved. GCR167143PR ADetail about CEB Inc. and its subsidiaries can be found at .com

REBOUNDING GROWTHHaving recovered from a brief slowdown, average year-over-year(YOY) lawyer rate increases reached their highest levels since theGreat Recession. The average growth in lawyer rates was 5.4% in2015; this is slightly higher than the previous peak in 2011, but itdoes not yet approach the Pre-Recession YOY rate changes ofmore than 8%.The average YOY rate increase for associates in 2015 was 7.3%,just more than double the 3.6% rate increase for partners.This gap in partner and associate rate increases has remainedfairly consistent since 2010.Average YOY Lawyer Rate Changes, 2010 to 2015All 15(n 27,062.)(n 30,565.)(n 31,350.)(n 30,387.)(n 27,608.)Source: Wolters Kluwer ELM Solutions, Inc.; CEB analysis. 2016 CEB. All rights reserved. GCR167143PR ADetail about CEB Inc. and its subsidiaries can be found at .com

LAWYER RATE CHANGES IN MAJOR US CITIESNew York City had the largest YOY change to lawyer rates in2015, increasing by 7.9% on average. This high increase was drivenby thousands of high-priced Big Law associates working oncorporate and commercial litigation matters. The second largestrate increase across the 25 US cities with the highest volume oflegal work was in Dallas, at 6.8%.At the other side of the spectrum, several major US marketssaw annual rate increases slow to less than 3% in 2015, includingKansas City, Cleveland, Miami, and New Orleans.Average YOY Lawyer Rate Changes by US City, 2014 to 20158.0%7.9%6.8%6.4%6.4% 6.2%6.5%5.0%5.8%5.5% 5.3%5.2% 5.0%4.0%3.9%4.5% 4.4%4.2% 3.9%3.5% 3.3% 3.2%3.1%2.9% 2.7%2.6%1.4%New Orleans, LAMiami, FLCleveland, OHKansas City, MOSan Diego, CASt. Louis, MOPortland, ORAustin, TXPhoenix, AZSeattle, WAMinneapolis, MNBaltimore, MDPhiladelphia, PAPittsburgh, PAHouston, TXSan Jose, CADenver, COSan Francisco, CAWashington, DCAtlanta, GAChicago, ILBoston, MALos Angeles, CADallas, TXNew York, NY0.0%n 174 to 5,158 lawyers (per market).Source: Wolters Kluwer ELM Solutions, Inc.; CEB analysis. 2016 CEB. All rights reserved. GCR167143PR ADetail about CEB Inc. and its subsidiaries can be found at .com

GOING DEEPER ON SPECIFIC MARKETSMinneapolisReal Rate‘13‘14‘1546% 5952%3%4%Associates41% 4006%7%7%Paralegals12% 1720%3%6%50 or Fewer23% 3281%1%2%51 to 20017% 4381%4%3%201 to 5008% 3853%4%3%501 to 1,00034% 5534%5%9%More Than 1,00019% 6505%6%6%More Than 1,000Patents, Litigation15% 6435%4%8%Patents, LitigationReg. and Compliance,Non-Litigation5% 5663%4%12%Corporate, LitigationCommercial, LitigationCorporate, Litigation4% 5371%3%4%Corporate, NonLitigation3% 6634%5%4%Commercial, Litigation2% 5443%4%7%Firm Size(# of Lawyers)Role% of HrsPartners2015% Rate Change% of HrsReal Rate‘13‘14‘15Partners38% 4202%2%3%Associates52% 28211%2%5%Paralegals10% 1612%2%4%50 or Fewer57% 29310%-1%4%51 to 20012% 3233%3%3%201 to 5004% 4504%1%3%501 to 1,00026% 3986%6%5%0%n/an/an/a32% 4278%5%19% 3155%9% 3782%New York2015% Rate Change% of Hrs Real Rate‘13‘14‘152%4%5% 5178%10%11% 2194%6%7%3%2%4% 3963%6%5% 5764%5%5% 6997%11%10% 7196%7%9% 7204%7%6%4%3%4%5%4%3% 7508%11%13% 6894%7%5%Partners31%Associates57%Paralegals12%50 or Fewer11% 35251 to 2008%201 to 50013%501 to 1,00038%n/aMore Than 1,00029%6%Commercial, Non-Litigation9%3%4%Corporate, Litigation8% 5546%3%Commercial, Litigation3% 562Invests and Instruments,Non-Litigation7%Reg. and Compliance,Non-Litigation2%Product Liability,Litigation6% 3252%4%2%Commercial, NonLitigation2% 3851%0%5%Role% Rate ChangeFirm Size(# of Lawyers)2015Most BilledPractice AreasMost BilledPractice AreasFirm Size(# of Lawyers)RoleSan Franciscowent to associates and 67% of hours billed went to large law firms(employing 500 or more lawyers). Annual lawyer rate increases atthose large law firms reached over 10% in 2015.Most BilledPractice AreasA closer look at specific markets shines some light on theindividual drivers of a city’s annual rate increases. For example, inNew York City, more than 57% of total hours billed for legal work 779Source: Wolters Kluwer ELM Solutions, Inc.; CEB analysis. 2016 CEB. All rights reserved. GCR167143PR ADetail about CEB Inc. and its subsidiaries can be found at .com

About CEBAbout Wolters Kluwer Governance, Risk & ComplianceCEB is a best practice insight and technology company. Inpartnership with leading organizations around the globe, wedevelop innovative solutions to drive corporate performance.CEB equips leaders at more than 10,000 companies withthe intelligence to effectively manage talent, customers, andoperations. CEB is a trusted partner to nearly 90% of theFortune 500 and FTSE 100, and more than 70% of the DowJones Asian Titans.Wolters Kluwer Governance, Risk & Compliance (GRC) is adivision of Wolters Kluwer which provides legal, finance, riskand compliance professionals and small business owners witha broad spectrum of solutions, services and expertise neededto help manage myriad governance, risk and complianceneeds in dynamic markets and regulatory environments. Thedivision’s prominent brands include: AuthenticWeb , BankersSystems , BizFilings , Capital Changes, CASH Suite , CTCorporation, CT Lien Solutions, ComplianceOne , Corsearch,Expere , GainsKeeper , LegalVIEW , OneSumX , Passport ,TyMetrix 360, Uniform Forms , VMP Mortgage Solutionsand Wiz . Wolters Kluwer N.V. (AEX: WKL) is a global leaderin information services and solutions for professionals in thehealth, tax and accounting, risk and compliance, finance andlegal sectors. Wolters Kluwer reported 2015 annual revenuesof 4.2 billion. The company, headquartered in Alphen aanden Rijn, the Netherlands, serves customers in over 180countries, maintains operations in over 40 countries andemploys 19,000 people worldwide.Contact Us 1-866-913-8103 lmsolutions.com 2016 CEB. All rights reserved. GCR167143PR ADetail about CEB Inc. and its subsidiaries can be found at .com

and Wiz . Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2015 annual revenues of 4.2 billion. The company, headquartered in Alphen aan