""The rate of growth in the Second Hundred is lower on most of the key metrics and those firms are starting off on a lower base, thereby creating a widening gap between the Second Hundred and the Top 100 on both size and profitability.""
""That leads, Zimmermann said, to less flexibility on compensation for most firms in the Second Hundred, which creates a talent advantage for the larger and most profitable firms.""
""As the gap grows, it is harder for the smaller and less profitable firms to retain and attract lawyers, and the headwinds are palpable.""
In 2025, the Am Law Second Hundred law firms reported significant financial growth, including a 6% increase in gross revenue and a 9.5% rise in average profits per equity partner. However, the gap between these firms and the Am Law 100 is increasing, with lower rates and demand growth posing challenges. Strategic adviser Kent Zimmermann noted that this widening gap affects compensation flexibility and talent retention, making it difficult for smaller firms to compete with larger, more profitable firms.
Read at Above the Law
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