Shearman's New Leader Is Very Busy Refuting Rumors About The Firm's Alleged Financial Struggles
Ed. note: Welcome to our daily feature, Quote of the Day.
Revenue earned in 2022 was only off 10% from a record year [in 2021]. Net income was only off 15%. In the first quarter of 2023, our revenue was up 19% from 2022. Many of our core practices are thriving.
Given that our revenue is up year over year for the first quarter of 2023, I don't see a reason to be anything other than confident that we have the partners, the clients, the business and the reputation to thrive.
-- Adam Hakki, Sherman & Sterling's new senior partner, in comments given to the American Lawyer, refuting rumors that the firm is facing financial troubles. One source told Am Law that "Shearman can pay its bills, and they can pay their associates, and they can fulfill their guarantees [to partners], but if they do all of that, there's very little money left over for the rest of the partners." Hakki said that Shearman's "[p]artners are being paid consistent with our long-standing profit distribution practices," and that the firm is not in a cash crunch. On top of that, in the wake of the firm's layoffs in February and April, Hakki told Am Law that "[t]here is no current plan to initiate any additional workforce reductions at this time." He concluded his statement, noting that 2023 will be a year of "transition" for the firm.
Staci Zaretsky is a senior editor at Above the Law, where she's worked since 2011. She'd love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.