Fees up 7.5% but profits flat at O'Melveny

O'Melveny & Myers has announced relatively flat partner profits for the second year in succession, although turnover at the Los Angeles firm increased by 7.5%.

Profits per equity partner (PEP) at O'Melveny grew by less than half a percent, from $1.63m (£827,000) last year to $1.64m (£830,000). The move represents an increase of just 0.3% - the same rate achieved by the firm the previous year.

There was a more significant improvement in revenue, with fee income rising by 7.5% to $934m (£479.9m), up from $869m (£446.5m) in 2006.

Commenting on the results, chairman Arthur Culvahouse said: "Our solid revenue performance allowed us to record our seventh straight year of increased profitability, while funding very substantial investments for the future in London, Asia and the US."

He said the firm had made 12 lateral partner hires and promoted its largest partnership class ever, pointing to investment in London, Brussels and Tokyo.

Culvahouse added: "Even though we were not immune to the downturn in US and European deal-flow caused by the turmoil in the credit markets, our transactions practice enjoyed year-over-year revenue growth of 15% firmwide."

Meanwhile, California rival Wilson Sonsini Goodrich & Rosati posted revenue growth of almost 13%, with fee income at the Palo Alto-based firm climbing from $471m (£239m) in 2006 to a new mark of $531m (£270m).

PEP at the top 100 US law firm rose 9.9% from $1.31m (£664,000) to $1.44m (£729,000).

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