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The Legal and Compliance Practice has partnered with CT TyMetrix to produce the legal industry’s first analysis of $4 billion in U.S. law firm billings to corporate clients. The Real Rate Report™ is a unique and unprecedented look at the real rates that corporations are paying for work done by their law firms.

About the Real Rate Report™

The Real Rate Report™ is a unique and unprecedented look at the real rates that corporations are paying for work done by their law firms. The rate data in the report will help you benchmark your rates against industry averages and ranges and negotiate more effective fee arrangements. For more information on the report, or to learn how The Corporate Executive Board can help you cut outside counsel costs further, please contact us.

 

A Few Findings from the Real Rate Report™

Intriguing Rate Trends from 2007–2009

Several intriguing trends emerged from our analysis of law firm billings to corporate clients:

  • Despite the economic downturn, roughly 75% of law firm lawyers increased the hourly rates they charged their corporate clients.
  • Nearly one in five increased their rate by $100 an hour or more.

Average Hourly Rates by Law Firm Size (2007-2009)

Drivers of Law Firm Lawyer Rates

Surprisingly, experience level and practice area are not the two most important variables in determining law firm lawyer rates. Our findings show that, statistically, the two dimensions that predominately determine a lawyer’s rate is the size of the law firm and where the lawyer happens to practice.

Billing Behavior to Watch Out For

We analyzed over 17.6 million invoice line items from nearly 100,000 law firm partners, associates, and paralegals, and we have documented a list of 10 specific billing practices to watch for. A few include:

  1. Timekeepers who bill exactly eight hours to a matter per day;
  2. Timekeepers who bill very small increments of time over the course of a matter (less than 10 hours);
  3. Partners who regularly bill in whole hour increments; and
  4. Unit billing by using the same description of work repeatedly; for example, we saw one associate in the data who billed “Post Entries to Master Docket” more than 250 times to one client.

Learn how the Legal and Compliance Practice can help you:

  • Reduce your outside counsel costs.
  • Negotiate lower fees.

Download an overview of the outside counsel cost-reduction resources we offer.

Contact us today for supporting research, to request a copy of the Real Rate Report™ or to consult with an executive advisor on this topic.

The Real Rate Report™ is free of charge to
GCR and CLEX members.

Inquire about membership.  |  Already a member?

Overview of Legal Fees Data Analyzed
by CEB and CT TyMetrix

Fees Paid $4.1 Billion (2007–2009)
Law Firms 3,500+
Law Firm Associate 35,500+
Law Firm Partners 26,800+
Total Individual Billers 90,000+

For media inquiries, please contact Joni Renick.