Major law firms are riding high on a wave of financial success, but the shifting economic and political landscape has them watching the horizon closely.
After a strong performance in 2024, firms are leveraging their cash-rich position to navigate a volatile market shaped by geopolitical shifts and policy upheavals under President Donald Trump’s administration.
“For us, geopolitical changes represent a catalyst,” said Miguel Zaldivar, CEO of Hogan Lovells, as the firm reported a 9% revenue growth to $2.96 billion last year. Profits per equity partner hit $3.07 million, reflecting the industry’s robust financial health.
Despite concerns over tariffs, regulatory shake-ups, and fluctuating interest rates, law firms are positioning themselves to capitalize on evolving client needs. “There’s going to be a pretty robust market for legal services this year,” said Les Starck of Wells Fargo’s Legal Specialty Group.
Data supports the optimism—law firm revenues soared 12.5% on average in 2024, with equity partner profits up nearly 17%, largely driven by rising billing rates. Paul Weiss, for instance, posted a staggering 31.6% revenue jump, reaching $2.63 billion. The firm’s chairman, Brad Karp, acknowledged some market dislocation but remains confident that deal activity will gain momentum as the year unfolds.
Firms are also doubling down on regulatory expertise, with Baker Botts drawing record attendance to a recent webinar on evolving legal frameworks. “Clients put a tremendous premium on anticipating regulatory changes,” said managing partner Danny David.
Meanwhile, financial disclosures from lawyers entering federal posts are shedding light on another lucrative aspect of Big Law: retirement pay. Christopher Landau, Trump’s nominee for deputy secretary of state, revealed a $372,000 annual pension from his former firm, Kirkland & Ellis—outpacing his current law firm salary.
Retirement benefits are becoming a key battleground in legal recruitment, with firms not just competing on salaries but also long-term financial security. The burden of pension obligations has even played a role in the downfall of some firms, as seen with Stroock & Stroock & Lavan’s dissolution in 2023.
As law firms ride the highs of a cash-rich era, they remain vigilant—knowing that a shifting economy could turn the tide at any moment.
