Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Top-10 law firm partners average $1.3m in billings a year

Monday 05 December 2016 10:45 AM

Top-10 law firm partners average $1.3m in billings a year

By Fiona Rotherham

Dec. 5 (BusinessDesk) - The 10 best-performing law partners in New Zealand earned average revenue of $1.3 million a year compared to the bottom 10 who averaged $422,800 per partner, according to an annual survey.

The survey of 41 law firms nationwide was conducted by the Australasian Legal Practice Management Association (LPMA) and Crowe Horwath. It showed the average revenue per partner was more than $803,171, a 12 percent rise on the 2015 survey.

Non-equity partners’ salaries averaged $171,000, 12 percent down on the prior year. The average firm had 4.2 full-time equivalent staff members per partner. Salaries for both fee-earning staff and non-earning workers also dipped this year to an average $74,000 and $52,000 respectively. That compares to the average hourly wage in New Zealand for the third quarter of 2016 of $29.84 an hour, or just over $62,000 a year.

The sector is more optimistic about the outlook, expecting an average of 5 percent growth in the next financial year while 74 percent of the firms surveyed expect revenue growth compared with just 53 percent the prior year.

Crowe Horwath business advisory principal Glen Gernhoefer said strong revenue growth was putting pressure on staff and capital capacity.

“Hiring expectations are very strong to help balance this with 94 percent of respondents expecting to hire new fee-earning staff in the next year,” he said.

The law firms surveyed had average operating profit margins – the amount available to partners before interest and tax - of nearly 38 percent, or $369,000, up 7 percent on the prior survey.

Gross profit margins, the amount left over after direct costs including fee-earner salaries, averaged 79 percent. On the expense side, rent was the largest cost at an average 6.9 percent of revenue.

While other professional service firms are now using more fixed-fee packages, the law firms showed a move back to hourly rates at 76 percent of those surveyed, up from 69 percent last year while only 12 percent did fixed fees, compared to 16 percent the prior year.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>


Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>