According to The American Lawyer, Latham & Watkins reported a 21 percent drop in profits per equity partner in 2008, down to $1.8 million. This is a decline of $470,000 from 2007, when the firm reported profits of $2.27 million per partner.
The American Lawyer reports the firm was exposed in the financial markets, with clients such as Lehman Brothers and Bear Stearns, and in the leveraged buyout sector. The firm also announced in December that it was freezing associate salaries for 2009.
A year ago, Latham & Watkins and Skadden, Arps, Slate, Meagher & Flom became the first two firms to break the $2 billion threshold in gross revenue. This year, Latham dipped below the $2 billion mark, reporting $1.9 billion in revenue – or a 4 percent drop.