2012 ECONOMIC SURVEY
September 2012
Table of Contents
Introduction ....................................................................................................................................... 1
General member responses .......................................................................................................... 2 - 3
What is your type of employment? ................................................................................................... 4
What is the status of your practice/employment? ............................................................................. 4
Are you in private practice ................................................................................................................ 4
What is the structure of your firm? ................................................................................................... 5
What is the size of your firm? ........................................................................................................... 5
How long have you been a licensed attorney? .................................................................................. 6
How many years have you been in private practice? ........................................................................ 6
2012 / 2010 Comparative:
Annual compensation – Legal Secretary ........................................................................... 7
Experience.................................................................................................................... 7
By sole practitioner ...................................................................................................... 7
By 2-3 attorneys ........................................................................................................... 8
By 4-5 attorneys ........................................................................................................... 8
By 6-10 attorneys ......................................................................................................... 9
By 11-19 attorneys ....................................................................................................... 9
By 20+ attorneys .......................................................................................................... 9
Annual compensation – Legal Assistants ........................................................................ 10
Experience.................................................................................................................. 10
By sole practitioner .................................................................................................... 10
By 2-3 attorneys ......................................................................................................... 11
By 4-5 attorneys ......................................................................................................... 11
By 6-10 attorneys ....................................................................................................... 12
By 11-19 attorneys ..................................................................................................... 12
By 20+ attorneys ........................................................................................................ 12
Annual compensation – Associates ................................................................................. 13
Experience.................................................................................................................. 13
By 2-3 attorneys ......................................................................................................... 13
By 4-5 attorneys ......................................................................................................... 14
By 6-10 attorneys ....................................................................................................... 14
By 11-19 attorneys ..................................................................................................... 15
By 20+ attorneys ........................................................................................................ 15
What is the method of compensation for associates in your firm? ................................................. 15
Personal annual income from practicing law by firm size in 2011................................................. 16
Personal annual income comparative of 2011 / 2009 by firm size ................................................. 16
Percentage of 2011 gross fees by area of practice .......................................................................... 17
When you charge on an hourly basis, what is your standard hourly rate ....................................... 18
On average, how many billable hours do you have per year comparative 2011/2010 ................... 19
What types of advertising/marketing do you or your firm use ....................................................... 20
Table of Contents
(Continued)
Thoughts of your legal profession .................................................................................................. 21
Thoughts of professionalism among lawyers ................................................................................. 21
Do you get any personal satisfaction from the practice of law ....................................................... 22
In an average month, how many hours do you spend on civic/community work .......................... 23
Thoughts on the economic circumstances of practicing law .......................................................... 23
With regards to your own activities, the quantity of work is .......................................................... 24
How many work days in 2011 did you take for vacation time ....................................................... 24
The percentage of fees that were uncollectable comparative in 2011/2010 ................................... 25
How often do you bill clients? ........................................................................................................ 26
The factors determining fees ........................................................................................................... 27
What percentage of your gross income is spent on non-salaried overhead .................................... 28
What percentage of your gross income is spent on professional salaries ....................................... 28
Metro Area Comparatives: (Hinds, Madison & Rankin)
2012 Associate annual compensation by experience ....................................................... 29
2012 Legal Secretary annual compensation by experience ............................................. 29
2012 Legal Assistant annual compensation by experience.............................................. 30
2011 Personal annual income by size of firm .................................................................. 30
2011 Percentage of gross fees by area of practice ........................................................... 31
Average of billable hours by size of firm ........................................................................ 32
2
INTRODUCTION
The 2012 Mississippi Bar Economic Survey was administered electronically in July, 2012. The
survey was made available to all Bar members through a link emailed to them.
The questions for the survey were suggested by the Mississippi Bar. All technology questions
included in previous surveys were eliminated. The accounting firm of Grantham Poole was
responsible for the administration and tabulation of the survey and its results.
A total of 676 members responded and completed the survey. Of the responses received, the largest
percentages were from Hinds county (24.9%), Madison county (10.4%) and Harrison county (7.4%)
and out-of-state (15%). Over a third of the responders had practiced 26 years or more, the survey
does represent all levels of experience with answers being spread fairly equally amount the age
groups. Other general characteristics noted in the results included the following:
•
•
•
•
73.3% of the respondents were male; 26.7% were female
91.1% of the respondents were Caucasian
94.1% of the respondents work full-time in the practice of law
54.7% graduated from the University of Mississippi School of Law; 26.3% graduated from the
Mississippi College School of Law; 19.1% received their law degrees from other institutions
The charts that follow illustrate the answers to questions relating to firm structure and size, income
and salaries, hourly rates and billable hours, marketing and personal satisfaction with the profession.
Thank you for your participation.
1
Are You Currently An Active Practicing Member Of The Bar?
93.5%
Yes
No
3.9%
Retired
1.4%
Unemployed (end
of survey)
1.2%
Respondents Gender
Female
26.7%
73.3%
Male
Where did you receive your legal education/training?
University of
Mississippi
Mississippi
College
Other
54.7%
26.3%
19.1%
2
Bar Member Respondents Age Group
28.1%
35 and Under
23.9%
36 to 44
18.0%
45 to 55
30.0%
Over 56
Racial / Ethnic Background of Respondents
African American
Asian American
6.0%
0.6%
91.1%
Caucasian
Latin/Hispanic
0.9%
Other
1.4%
3
What Is Your Type Of Employment?
27.6%
Sole Practitioner
22.7%
Partner/Shareholder
3.5%
Non-Equity Partner
15.9%
Associate
Judge
1.2%
6.2%
In-House Counsel
Professor of Law
0.2%
16.7%
Government
6.2%
Other
What Is The Status Of Your Practice /Employment?
94.1%
Full Time
Part Time
5.9%
Are You In Private Practice?
Yes
No
26.7%
73.3%
4
What Is The Structure Of Your Firm?
23.0%
Sole Practitioner
Partnership
11.5%
Professional Limited
Liability Company
41.2%
Professional
Corporation
24.3%
What Is The Size Of Your Firm?
37.3%
1 Attorney
17.1%
2-3 Attorneys
4-5 Attorneys
9.5%
6-10 Attorneys
7.1%
11-19 Attorneys
7.3%
20+ Attorneys
21.7%
5
How Long Have You Been A Licensed Attorney?
0-5 Years
16.5%
6-10 Years
16.1%
13.9%
11-15 Years
16-20 Years
21-25 Years
9.9%
9.0%
34.6%
26+ Years
How Many Years Have You Been In Private Practice?
19.8%
0-5 Years
16.7%
6-10 Years
11-15 Years
13.0%
16-20 Years
9.0%
21-25 Years
8.8%
26+ Years
32.6%
6
COMPENSATION FOR LEGAL SECRETARIES IN 2012
BY YEARS OF EXPERIENCE
2012 / 2010 Secretary Annual Compensation by
Experience Comparative
$45,000
38,464
$40,000
35,862
$35,000
31,013
$30,000
25,488
$25,000
30,784
32,004
26,988
20,369
$20,000
$15,000
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
2012 / 2010 Secretary Compensation by Size of
Firm - Sole Practitioner Comparative
$35,000
31,846
$30,000
$25,000
22,063
23,867
19,159
$20,000
$15,000
27,497
25,692
16,675
14,522
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
7
COMPENSATION FOR LEGAL SECRETARIES IN 2012
BY YEARS OF EXPERIENCE - (Continued)
2012 / 2010 Secretary Compensation by Size of
Firm - 2-3 Attorneys Comparative
32,625
$35,000
28,493
$30,000
25,100
28,389
25,000
23,222
$25,000
$20,000
16,214
15,863
$15,000
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
2012 / 2010 Secretary Compensation by Size of
Firm - 4-5 Attorneys Comparative
$40,000
35,333
33,000
$35,000
29,273
$30,000
$25,000
20,818
36,000
33,600
28,818
23,000
$20,000
$15,000
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
8
COMPENSATION FOR LEGAL SECRETARIES IN 2012
BY YEARS OF EXPERIENCE - (Continued)
2012 / 2010 Secretary Compensation by Size of Firm 6-10 Attorneys
$45,000
34,200
33,429
$40,000
$35,000
40,000
37,800
35,600
32,400
29,333
$30,000
23,750
$25,000
$20,000
$15,000
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
2012 / 2010 Secretary Compensation by Size of Firm 11-19 Attorneys Comparative
$50,000
43,500
$45,000
39,500
33,429
$35,000
$30,000
37,500
37,273
$40,000
38,429
26,800
27,500
$25,000
$20,000
$15,000
$10,000
$5,000
0-2
2012
3-8
9-12 Years
13+ Years
2010
Secretary Compensation by Size of Firm
20+ Attorneys
NONE REPORTED
9
COMPENSATION FOR LEGAL ASSISTANTS IN 2012
BY YEARS OF EXPERIENCE
2012 /2010 Paralegal Annual Compensation by
Experience Comparative
$50,000
45,373
$45,000
39,549
$40,000
34,048
$35,000
29,578
$30,000
$25,000
37,602
33,402
29,927
23,269
$20,000
$15,000
$10,000
$5,000
0-2 Years
2010
2012
3-6 Years
7-12 Years
13+ Years
2012 /2010 Paralegal Compensation by Size of
Firm - Sole Practicioner Comparative
$45,000
38,500
$40,000
33,875
$35,000
31,000
30,654
$30,000
$25,000
24,167
$20,000
$15,000
22,303
17,938
13,237
$10,000
$5,000
0-2 Years
2012
3-6 Years
7-12 Years
13+ Years
2010
10
COMPENSATION FOR LEGAL ASSISTANTS IN 2012
BY YEARS OF EXPERIENCE - (Continued)
2012 / 2010 Paralegal Compensation by Size of
Firm - 2-3 Attorneys Comparative
$45,000
40,400
$40,000
35,417
$35,000
30,556
$30,000
$25,000
26,800
29,737
29,545
26,286
19,455
$20,000
$15,000
$10,000
$5,000
0-2 Years
2012
3-6 Years
7-12 Years
13+ Years
2010
2012 / 2010 Paralegal Compensation by Size of
Firm - 4-5 Attorneys Comparative
$55,000
46,429
38,125
$45,000
32,571
$35,000
26,300
26,700
41,400
36,727
30,833
$25,000
$15,000
$5,000
0-2 Years
2012
3-6 Years
7-12 Years
13+ Years
2010
11
COMPENSATION FOR LEGAL ASSISTANTS IN 2012
BY YEARS OF EXPERIENCE - (Continued)
2012 / 2010 Paralegal Compensation by Size of
Firm - 6-10 Attorneys Comparative
$55,000
$35,000
45,833
41,000
$45,000
40,750
35,667
32,750
40,000
35,000
28,333
$25,000
$15,000
$5,000
0-2 Years
2012
3-6 Years
7-12 Years
13+ Years
2010
2012 / 2010 Paralegal Compensation by Size of
Firm - 11-19 Attorneys Comparative
52,000
$55,000
$45,000
38,273
36,786
39,200
41,833
38,778
30,250
$35,000
28,050
$25,000
$15,000
$5,000
0-2 Years
2012
3-6 Years
7-12 Years
13+ Years
2010
Paralegal Compensation by Size of Firm
20+ Attorneys
NONE REPORTED
COMPENSATION FOR ASSOCIATES IN 2012
12
BY YEARS OF EXPERIENCE
2012 / 2010 Associate Annual Compensation by
Experience - Comparative
$125,000
104,609
$105,000
94,409
82,534
$85,000
64,716
$65,000
66,288
77,471
67,925
54,880
$45,000
$25,000
$5,000
0-3 Years
2012
4-6 Years
7-10 Years
11+ Years
2010
2012 / 2010 Associate Compensation by Size of
Firm - 2-3 Attorneys Comparative
$75,000
63,875
$65,000
$55,000
$45,000
70,778
53,857
45,575
49,929
42,143
38,944
30,000
$35,000
$25,000
$15,000
$5,000
0-3 Years
2012
4-6 Years
7-10 Years
11+ Years
2010
COMPENSATION FOR ASSOCIATES IN 2012
BY YEARS OF EXPERIENCE - (Continued)
13
2012 / 2010 Associate Compensation by Size of Firm 4-5 Attorneys Comparative
$95,000
$85,000
57,125
$65,000
88,333
74,000
65,556
$75,000
$55,000
85,125
77,364
60,786
49,933
$45,000
$35,000
$25,000
$15,000
$5,000
0-3 Years
2012
4-6 Years
7-10 Years
11+ Years
2010
2012 / 2010 Associate Compensation by Size of Firm 6-10 Attorneys Comparative
$165,000
145,000
$145,000
$125,000
$105,000
85,000
$85,000
$65,000
64,363
68,950
56,167
85,000
88,333
62,500
$45,000
$25,000
$5,000
0-3 Years
2012
4-6 Years
7-10 Years
11+ Years
2010
14
COMPENSATION FOR ASSOCIATES IN 2012
BY YEARS OF EXPERIENCE - (Continued)
2012 / 2010 Associate Compensation by Size of Firm
- 11-19 Attorneys Comparative
$165,000
143,800
$145,000
$125,000
110,000
$105,000
$85,000
98,875
80,385
78,857
62,821
79,286
61,667
$65,000
$45,000
$25,000
$5,000
0-3 Years
2012
4-6 Years
7-10 Years
11+ Years
2010
Associate Compensation by Size of Firm
20+ Attorneys
NONE REPORTED
WHAT IS THE METHOD OF COMPENSATION
FOR ASSOCIATES IN YOUR FIRM?
Salary only
9.1%
Salary plus possible year end bonus
Salary plus % fee personally
generated
Salary pllus % of firm's gross
Time
Not applicable
32.6%
8.1%
0.7%
2.3%
47.3%
15
PERSONAL ANNUAL INCOME FROM PRACTICING LAW IN 2011
2011 Annual Income From Practice - Firm Size
20+ Attorneys
143,120
11-19 Attorneys
145,333
6-10 Attorneys
198,208
4-5 Attorneys
173,952
2-3 Attorneys
173,095
Sole Practictioner
123,960
Average of All Responses
159,612
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Annua l Income From Practice /Firm size Comparative
2009
2011
$190,416.00
20+ Attorneys
$143,120.00
$166,909.00
11-19 Attorneys
$145,333.00
$148,473.00
6-10 Attorneys
$198,208.00
$128,400.00
4-5 Attorneys
$173,952.00
$147,223.00
2-3 Attorneys
$173,095.00
$98,513.00
Sole Practictioner
$123,960.00
Average of All
Responses
$1,000.00
$133,025.00
$51,000.00
$101,000.00
$151,000.00
$159,612.00
$201,000.00
$251,000.00
16
WHAT IS THE PERCENTAGE OF YOUR 2011 GROSS
FEES BY AREA OF PRACTICE?
Bankruptcy
16.6%
Business/ Commercial
Litigation
31.3%
Civil Rights/Discrimination
9.6%
Criminal Defense
21.8%
Family/Domestic
Gaming
Government
Healthcare
29.1%
0.6%
17.4%
15.5%
Insurance
Labor/Employment
30.7%
18.2%
Personal Injury
36.0%
Real Estate
Trusts and Estates
Other
25.2%
15.2%
25.2%
17
WHEN YOU CHARGE ON AN HOURLY BASIS, WHAT IS
YOUR STANDARD HOURLY RATE?
Less than $100
$100
3.9%
1.8%
$125
6.0%
$150
23.5%
$175
13.0%
$200
21.8%
$225
7.4%
$250
$275
9.8%
2.8%
$300
5.6%
$325
1.1%
$350
1.4%
$400
400+
0.7%
1.4%
18
HOW MANY BILLABLE HOURS DO YOU HAVE PER YEAR?
(On Average)
2011
30.9%
Less than 1000
18.1%
1500
13.6%
1750
15.8%
1900
11.7%
2100
6.0%
2200
3.8%
2500+
2010
29.5%
Less than 1000
19.4%
1500
13.4%
1750
16.6%
1900
11.5%
2100
2200
4.6%
2500+
5.1%
19
WHAT TYPES OF ADVERTISING /MARKETING
DO YOU OR YOUR FIRM USE?
Newspaper
Billboard
13.7%
3.7%
Radio
4.8%
Television
4.8%
Yellow Pages
22.1%
Newsletter/Brochure
15.8%
Internet
Direct mail soliciation
Other
None
36.9%
5.4%
9.5%
51.6%
20
DO YOU THINK THE LEGAL PROFESSION IN YOUR AREA SUFFERS FROM A
NEGATIVE IMAGE IN THE EYES OF THE PUBLIC?
77.4%
Yes
No
22.6%
IN THE PAST FIVE YEARS, DO YOU THINK THAT THE PROFESSIONALISM AMONG
LAWYERS HAS………
Increased
5.5%
52.4%
Decreased
34.0%
Stayed the same
No opinion
8.0%
21
DO YOU GET ANY PERSONAL SATISFACTION FROM THE PRACTICE OF LAW?
34.1%
A great deal
24.4%
Too little
39.2%
Enough
None
2.3%
22
IN AN AVERAGE MONTH, HOW MANY HOURS DO YOU SPEND ON CIVIC AND
COMMUNITY WORK?
Less than 5
33.7%
5 to 9
22.0%
10 to 15
16 to 20
24.1%
6.2%
More than 20
None
9.3%
4.8%
COMPARED TO LAST YEAR, ON THE WHOLE, ARE THE ECONOMIC
CIRCUMSTANCES OF PRACTICING LAW?
Better
Worse
About the same
28.2%
33.0%
38.8%
23
WITH REGARDS TO YOUR OWN ACTIVITIES, THE QUANTITY OF WORK IS:
60.1%
All you can handle
More than you
prefer to handle
16.2%
Insufficient to keep
you busy
23.7%
HOW MANY WORK DAYS IN 2011 DID YOU TAKE FOR VACATION TIME?
Less than 5
16.6%
5 to 9 days
33.9%
10 to 15 days
27.1%
16 to 20 days
More than 20
days
None
11.5%
7.1%
3.7%
24
THE PERCENTAGE OF FEES THAT WERE UNCOLLECTABLE WAS -
2011
0%
11.9%
Less than 3%
33.5%
3-9%
24.9%
10 - 14%
15.2%
15% or more
15.2%
2009
0%
13.4%
Less than 3%
28.1%
3-9%
10 - 14%
15% or more
25.8%
16.1%
16.6%
25
HOW OFTEN DO YOU USUALLY BILL CLIENTS?
Upon completion of
project
12.7%
Monthly
Quarterly
Irregularly
59.5%
9.9%
18.0%
26
IN DETERMINING FEES, RATE THE FOLLOWING FACTORS:
Novelty & difficulty of the work
involved
Results obtained
37.8%
16.4%
Your reputation, experience and ability
as a lawyer
59.3%
Amount of time involved
Other clients not accepted due to
conflict
Fees customarily charged in your area
for similar work
Time limitations imposed by client or
circumstances
48.4%
21.8%
33.5%
21.1%
27
WHAT PERCENTAGE OF YOUR GROSS INCOME IS
SPENT ON NON-SALARIED OVERHEAD?
Under 25%
41.7%
25% to 35%
31.9%
36% to 45%
10.6%
46% to 55%
56% to 65%
66% to 75%
Over 75%
7.2%
4.3%
2.6%
1.7%
WHAT PERCENTAGE OF YOUR GROSS INCOME
IS SPENT ON PROFESSIONAL SALARIES?
Under 25%
45.5%
25% to 35%
19.1%
36% to 45%
12.7%
46% to 55%
56% to 65%
66% to 75%
Over 75%
10.0%
6.4%
4.1%
2.3%
28
METRO AREA
(HINDS, MADISON & RANKIN)
2012 - Associate Annual Compensation by Experience Comparative
Hinds
Madison
Rankin
$125,000
106,250
$105,000
77,388
$85,000
90,714
92,359
79,182
79,000
65,842 67,136
62,667
64,500
$65,000
53,333
42,400
$45,000
$25,000
$5,000
0-3 Years
4-6 Years
7-10 Years
11+ Years
2012 - Legal Secretary Annual Compensation by
Experience Comparative
Hinds
Madison
Rankin
$45,000
$40,000
36,333
34,003
$35,000
$30,000
$25,000
26,796
38,667 38,000
33,597
28,400
26,400
21,360
38,400
33,750
22,571
$20,000
$15,000
$10,000
$5,000
0-2
3-8
9-12 Years
13+ Years
29
METRO AREA
(HINDS, MADISON & RANKIN) - Continued
2012 - Legal Assistant Annual Compensation by
Experience Comparative
Hinds
Madison
Rankin
$55,000
46,667
$50,000
45,333
$45,000
40,000
$40,000
39,582
35,600
32,753
$35,000
$30,000
44,472
28,336
28,250
27,400
23,075
$25,000
$20,000
17,500
$15,000
$10,000
$5,000
0-2 Years
3-6 Years
7-12 Years
13+ Years
Personal Annual Income - 2011
Hinds
Madison
Rankin
214,000
$210,000
156,004
170,833
$160,000
158,333
110,512
$110,000
200,000
192,500
95,108
124,200
121,250
125,000
106,667
80,000
85,333
$60,000
$10,000
Sole
Practictioner
2-3 Attorneys
4-5 Attorneys
6-10 Attorneys 11-19 Attorneys
30
METRO AREA
(HINDS, MADISON & RANKIN) - Continued
2011 Percentage of gross fees by area of practice
Hinds
Madison
Rankin
16.2%
Bankruptcy
24.3%
6.8%
43.2%
Business/ Commercial
Litigation
30.6%
15.8%
18.4%
Civil Rights/Discrimination
3.3%
2.5%
21.0%
17.3%
12.5%
Criminal Defense
21.7%
Family/Domestic
Gaming
32.3%
30.3%
2.5%
0.0%
0.0%
18.9%
Government
5.0%
12.8%
16.9%
18.8%
Healthcare
3.3%
30.4%
35.5%
Insurance
42.6%
26.9%
Labor/Employment
5.1%
0.0%
41.7%
Personal Injury
26.9%
34.6%
16.6%
Real Estate
28.4%
53.0%
11.9%
Trusts and Estates
21.5%
15.0%
32.8%
Other
41.7%
29.4%
31
METRO AREA
(HINDS, MADISON & RANKIN) - Continued
Sole Practitioner - Average of billable hours per year
Sole Practitioner - Billable Hours
70.0%
80.0%
50.0%
20.0%
6.3%
Hinds
Madison
Rankin
10.0%
20.0%
12.5%
6.3%
12.5%
6.3%
6.3%
2500+
2200
2100
1900
1750
1500
6.3%
0.0%
0.0%
12.5%
10.0%
0.0%
6.3%
0.0%
0.0%
6.3%
0.0%
0.0%
6.3%
20.0%
0.0%
12.5%
0.0%
20.0%
Less than
1000
50.0%
70.0%
80.0%
2-3 Attorneys - Average of billable hours per year
2-3 Attorneys - Billable Hours
66.7%
33.3%
16.7%
Hinds
Madison
Rankin
33.3%
33.3%
33.3%
33.3%
33.3%
16.7%
2500+
2200
2100
1900
1750
1500
16.7%
0.0%
0.0%
0.0%
0.0%
0.0%
16.7%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
33.3%
33.3%
33.3%
33.3%
Less than
1000
33.3%
66.7%
33.3%
32
METRO AREA
(HINDS, MADISON & RANKIN) - Continued
4-5 Attorneys - Average of billable hours per year
4-5 Attorneys - Billable Hours
100.0%
66.7%
50.0%
33.3%
25.0%
Hinds
Madison
Rankin
25.0%
2500+
2200
2100
1900
1750
1500
0.0%
25.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
33.3%
25.0%
0.0%
0.0%
0.0%
0.0%
0.0%
50.0%
0.0%
Less than
1000
66.7%
0.0%
100.0%
6-10 Attorneys - Average of billable hours per year
6-10 Attorneys - Billable Hours
50.0%
Hinds
Madison
Rankin
50.0%
50.0%
50.0%
2500+
2200
2100
1900
1750
1500
0.0%
0.0%
0.0%
0.0%
50.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
50.0%
50.0%
0.0%
0.0%
0.0%
0.0%
Less than
1000
50.0%
0.0%
0.0%
33