Hogan Lovells, one of the highest-grossing law firms in the U.S., saw its profits per equity partner increase by 25.9% from 2020. The global firm of 2,600 lawyers in 47 offices around the world reported a total revenue of $2.61 billion last year. The firm’s total revenue in 2021 grew by 12.9% as compared to 2020, just about on par with the average 14% growth rate of most major law firms during the same year.
The firm’s Chief Executive Officer, Miguel Zaldivar, claimed that balance was key, as the firm raked in revenue across sectors. Below is a breakdown of the firm’s billing in 2021:
• 42% of billing came from its corporate and finance practice group
• 30% of billing came from regulatory and intellectual property, media, and technology
• 28% of billing came from litigation, arbitration, and employment
Most major law firms in the U.S. profited from strong client demand in 2021, especially in the corporate and finance sector. Many law firms saw increased revenue from M&A work last year, Hogan Lovells being no exception, as it represented Oracle Corp in its $28.3 billion acquisition of health care analytics company Cerner Corp.
Hogan Lovells’ fruitful year was not solely due to its notable billing, though. The firm’s Deputy CEO, Michael Davidson, claimed that “financial discipline” played a role, as well. Hogan Lovells streamlined how employees recorded their time and submitted invoices to clients. In an interview, Zaldivar also pointed to the fact that the firm implemented pay cuts in the last 18 months despite the fact that competition for legal talent increased, as most law firms saw a surge in work. Zaldivar also discussed how the firm reduced its real estate footprint and re-negotiated the rates on its office space over the course of the same 18-month period.
While many large law firms are “confirming formal office return dates for attorneys and staff,” Hogan Lovells does not seem to be in a rush. They are currently avoiding firmwide directives and still allowing their attorneys and staff to work from home.