Am Law 100 Rankings Explained: What Partners Need to Know

Dear William X.,

The Revenue-Based Rankings That Define Elite Practice

The Am Law 100 is The American Lawyer magazine's annual ranking of the 100 highest-grossing law firms in the United States, based purely on gross revenue. To crack the list, firms typically need substantial annual revenue in the hundreds of millions, with the top tier firms generating billions in annual revenue.

Unlike subjective "prestige" rankings, the Am Law 100 is strictly financial. Revenue includes everything from BigLaw associates billing 2,400 hours on M&A deals to high-volume litigation practices. This means the list includes both white-shoe Wall Street firms and large regional players with substantial revenue streams.

Compensation and Market Position

Many Am Law 100 firms follow the Cravath scale for associate compensation, with first-year salaries following market rates (verify current Cravath scale for exact figures) plus substantial bonuses. However, there's significant variation within the 100 - a firm ranked #95 might pay scale but offer different bonus structures or partnership tracks compared to a top-10 revenue generator.

Many lateral candidates find that Am Law 100 designation serves as shorthand for:

• Scale and Resources: Global offices, sophisticated practice management, and substantial technology investments
• Client Quality: Fortune 500 companies, major financial institutions, and complex cross-border matters
• Deal Flow: Consistent high-stakes transactions and litigation that drive professional development

Revenue vs. Profitability

Here's where it gets interesting for partners evaluating moves. The Am Law 100 ranks by gross revenue, not profits per partner (PPP). A firm might rank #50 in revenue but have mediocre PPP due to high overhead or lower-margin work. Conversely, some boutique firms with exceptional PPP don't make the Am Law 100 due to smaller headcount.

The market shows that partners with portable books often care more about PPP trends and practice group strength than overall revenue ranking. A #75 Am Law firm with a dominant practice in your area might offer better economics than a #25 firm where you'd be a small fish.

Regional Variations and Growth Markets

Am Law 100 firms are expanding aggressively in growth markets. In Charlotte, firms like K&L Gates and Moore & Van Allen leverage the Bank of America and Wells Fargo headquarters to build substantial financial services practices. with significant lateral hiring activity in the market.

California presents unique dynamics - established Am Law players like Wilson Sonsini and Cooley dominate tech-adjacent work, while employment boutiques handle the massive PAGA and wage-hour class action market. The 2024 PAGA reforms (AB 2288/SB 92) introduced cure opportunities and manageability requirements that reshaped the landscape, but California-specific expertise remains valuable for employment practitioners (verify current requirements as implementation continues to evolve).

Practice Area Considerations

Not all Am Law 100 firms are created equal across practice areas. Some built their revenue on high-volume, lower-margin work (think insurance defense or document review), while others focus on bet-the-company litigation and complex transactions. Firms typically evaluate lateral candidates based on practice group needs, not just overall firm ranking.

Current hot areas across Am Law 100 firms include AI/tech transactions, privacy and data security (where specialists often command salary premiums), and ESG practices. These growth areas often drive lateral hiring regardless of a firm's specific ranking within the 100.

Strategic Considerations for Lateral Moves

For partners with portable books, the Am Law 100 designation matters less than specific factors: practice group strength, client conflicts, geographical reach, and partnership economics. Many lateral candidates find that a firm's trajectory and market position in their specific practice area trumps overall revenue ranking.

Consider using tools like the partner portable book calculator to evaluate how your business development would translate across different firm structures. Some Am Law 100 firms offer better platforms for client development, while others provide more immediate economic returns.

The ranking also affects bar admission requirements if you're considering moves across state lines. Many Am Law 100 firms have multi-jurisdictional practices, but it's worth checking bar reciprocity requirements for your target markets.

Ultimately, the Am Law 100 serves as a useful starting point for identifying firms with scale and resources, but smart lateral candidates dig deeper into practice-specific metrics, cultural fit, and long-term growth prospects within their chosen specialty.