Norma Harris, LawFuel contributor
It’s been a top year for Paul Weiss Rifkind Wharton & Garrison who have now edged out aggressive corporate rivals to be anointed as the Big Law Lord of the Junge, clinching the coveted title of Law Firm of the Year for 2024.
This accolade, bestowed by the American Lawyer, is no small feat in the cutthroat realm of BigLaw, where only the fittest survive and thrive.
The firm has featured heavily in LawFuel this year too with its various exploits including the recruitment recently of two heavyweight lawyers from Weil Gotshal, its recruitment raids on Kirkland & Ellis in London, another earlier lateral move from Skadden to the firm in New York and so on.
The Secret Sauce of Success
Brad Karp, chair of Paul Weiss, offers a glimpse into the firm’s winning formula. With the sagacity of a battle-hardened general, Karp acknowledges the ever-shifting landscape of legal warfare – something his firm is well equipped to comment upon.
“The attributes that distinguish Paul Weiss in the marketplace today are very different from those that distinguished our firm in 2008 or even 2018. And make no mistake, we must continue to tweak and fine-tune these attributes, fully embracing the uncomfortable reality that our firm will look quite different in 2028 and 2035 from today.”
The adaptive mindset has propelled Paul Weiss well up the legal food chain, outmaneuvering rivals in a year marked by economic uncertainty and industry-wide challenges.
A Year of Triumphs
Paul Weiss didn’t just survive in 2024; it thrived in very fine form. The firm’s trophy case now boasts:
- Record-breaking profits: A testament to its financial acumen and client trust along with an aggressive approach towards both lateral hires, attracting talent like moths to a flame, and the deals they do.
- Revolutionary compensation model: Redefining the compensation rules of the game with an aggressive approach towards creating highly remunerative profit-centered partner pay. The firm implemented a “black box” compensation system for partners, moving away from more transparent models and also introduced a non-equity partnership tier, elevating the prospects for associates towards a faster track for partnership and helping to retain key legal talent.
- Passionate pro bono work: Proving that profit and purpose can coexist by providing a strong pro bono program. The firm has been at the forefront of high-profile pro bono cases, from civil rights battles to environmental crusades, proving that even in the world of BigLaw, there’s room for a conscience.
The Karp Doctrine
Brad Karp’s leadership philosophy reads like a battle plan for legal domination and the firm’s ongoing efforts prove the point.
“I’m acutely aware that law firms are dynamic, organic bodies that must continually adapt to thrive in an increasingly hostile and competitive environment. It’s absolutely critical that we evaluate, and continually reevaluate, what attributes distinguish Paul, Weiss in today’s marketplace so that we can adapt prudently, make wise investments and always operate from a position ahead of the curve.”
This approach has positioned Paul Weiss not just as a law firm, but as a legal innovation powerhouse, constantly reinventing itself to retain a lead position within the big law houses. Paul Weiss nearly tripled its partner promotions in 2024 as it grew with its restructured base to continue its onslaught in the legal field.
Overall revenues have soared to $2 billion in 2023, an all-time record while partner profits per equity partner has also been a very healthy $6.5 million – notwithstanding the outstanding deals for key talent that could see earnings for star partners reaching $20 million.
The proof of the firm’s success is measured by awards like that given by American Lawyer – but it is also seen in the PEP figures for the partners.
