The Colorado Bar Association

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1 The Colorado Bar Association 2010 Economic Survey Survey report compiled by Seigneur Gustafson LLP. We invite your comments and inquiries to Survey Supervised by Reba J. ance Director of Law Practice Management & Risk Management and Heather Clark Director of Communications and Marketing.

2 Table of Contents Descriptions of Survey Respondents and Summary of Findings... 4 Exhibit 1 Comparison of Survey Respondents to Universe of Colorado Attorneys... 4 Exhibit 2 Distribution of Survey Participants by Practice Classification... 6 Exhibit 3 Percent Distribution of Survey Respondents by Practice Classification... 7 Exhibit 4 Distribution of Survey Respondents by Practice Classification and Gender... 8 Exhibit 5 Distribution of Survey Respondents by Gender and Work Status... 8 Exhibit 6 Proportion of Respondents by Gender and Work Status Within Practice Classification... 9 Exhibit 7 Distribution of Survey Respondents by Practice Classification and Office Location Exhibit 8 Average Distribution of Firm Expenditures as a Percentage of Revenues Exhibit 9a Selected Benchmarks on the Economics of Practicing Law in Colorado, to Exhibit 9b Selected Benchmarks on the Economics of Practicing Law in Colorado, to Annual Income From Law Practice Exhibit Attorney Personal Income by Practice Classification (All Attorneys) Exhibit Attorney Personal Income by Practice Classification (Full-Time Attorneys Only) Exhibit 12 Percent Distribution of 2010 Attorney Personal Income by Practice Classification (Private Practitioners Only) Exhibit 13 Percent Distribution of 2010 Attorney Personal Income by Practice Classification (on-private Practitioners Only) Exhibit Median Attorney Personal Income by Years in Practice and Practice Classification Exhibit Attorney Personal Income by Legal Specialization (All Attorneys) Exhibit Attorney Personal Income by Legal Specialization (Private Practitioners Only) Exhibit Attorney Personal Income by Legal Specialization (Full-Time Private Practitioners Only) Exhibit Attorney Personal Income by Years in Practice Exhibit Attorney Personal Income by Size of Firm or Organization Exhibit Attorney Personal Income by Office Location Exhibit Attorney Median Personal Income by Practice Classification and Gender Exhibit Median Attorney Personal Income by Gender and Years in Practice Exhibit Median Attorney Personal Income by Gender, Work Status, and Years in Practice Exhibit Median Attorney Personal Income by Gender, Work Status, and Years in Practice (Private Practitioners Only).. 26 Exhibit 25 Distribution of Firms Operating Profit Before Distributions to Partners as a Percentage of Revenues Law Firm Billing Rates and Billing Practices Exhibit Hourly Billing Rates for Associates and Paralegals by Years of Experience Exhibit Associate Billing Rates by Firm Size Exhibit Associate Billing Rates by Office Location Colorado Bar Association. All rights reserved. i

3 Exhibit Paralegal Billing Rates by Firm Size Exhibit Paralegal Billing Rates by Office Location Exhibit 31 Distribution of Unit Charges Used for Billing Clients by Firm Size Exhibit 32 Distribution of Client Billing Methods Used for Paralegal Services by Firm Size Exhibit 33 Use of Credit Cards by Firm Size Other Aspects of Law Office Economics of Colorado Attorneys Exhibit 34 Median Values for Offices by Geographic Location Exhibit 35 Median Values for Size of Firm Exhibit 36 Ratio of Paralegals to Attorneys by Firm Size Exhibit 37 Ratio of Secretaries to Attorneys by Firm Size Exhibit 38 Revenues/Attorney by Firm Size & Presence of Administrators Exhibit Annual Compensation of Associates, Paralegals, and Secretaries by Years of Experience Exhibit Associate Compensation by Firm Size Exhibit Paralegal Compensation by Firm Size Exhibit Secretary Compensation by Firm Size Exhibit Paralegal Compensation by Office Location Exhibit Secretary Compensation by Office Location Exhibit Associate Compensation by Office Location Colorado Bar Association. All rights reserved. ii

4 The 2010 Colorado Bar Association Economic Survey Final Report Based on results from the 2010 CBA Economic Survey ITRODUCTIO During the summer of 2011, the Colorado Bar Association (CBA) surveyed the legal community on the economics of law practice to determine the following: Current demographics of practicing attorneys Attorney personal income from law practice for 2010 by practice classification/ pattern, gender, field of law, office location, work status, years in practice, and firm size (number of attorneys) Associate, paralegal, and secretary 2010 compensation by years of experience and office location Prevailing average 2010 hourly billing rates for associates by a variety of indicators, and paralegals by years of experience, firm size, and office location Attorney time in 2010 allocated to billable and non-billable professional activities 2010 overhead expenses associated with maintaining a private practice by office location and firm size Other law office management practices. This information has been consolidated into this report to help guide attorneys and administrators as they plan and manage their professional lives. Attorneys can compare themselves and their firms against norms established by the aggregation of survey data. orms include office location, firm size, and years of practice. Moreover, attention is given to analysis of gender-specific factors regarding attorney income. Methods Used to Conduct the Survey Survey results are based on a 54-question confidential survey instrument (questionnaire) that was ed in the summer of 2011 to all CBA members and members of the Mile High Chapter of the Association of Legal Administrators (ALA) with known addresses. The survey also was available to non-cba members via a link on the home page of the CBA website. The data obtained from approximately 1,585 usable, returned questionnaires were tabulated and analyzed by Seigneur Gustafson, LLP of Lakewood, Colorado. These returns represent a response rate of 10%, based on 16,000 questionnaires ed. To help the reader interpret the information provided in the exhibits below, here is a brief discussion of measures of central tendency (median and mean) and dispersion (spread) Colorado Bar Association. All rights reserved. 1

5 Measures of Central Tendency The mean (also called the average or arithmetic average) is calculated by adding the values of all responses, then dividing by the number of responses. Example: Three responses 1, 2 and 3 are reported. The average is calculated by adding their values ( = 6), then dividing by the number of responses (3). Thus, the average is 6 3 = 2. The median is the middle value of a series (distribution) of values, which is initially rankordered (from low to high or vice versa). By definition, half the numbers are greater and half are less than the median. Median values are used throughout this survey report to denote the measure of central tendency. Use of the median as a statistic for central tendency reduces the effect of outliers (extremely high or low values), while the average does not. Example: Three responses 1, 2 and 30 are reported. The median is the middle number of the order of distribution (1, 2, and 30) or 2. The average of this same distribution is 33 divided by 3, or 11. Measures of Dispersion (Spread) The spread of data around the median generally is based on the following three values: 25th percentile (lower quartile): ¼ (25%) of the values are less and ¾ (75%) are more than this value 75th percentile (upper quartile): ¾ (75%) of the values are less and ¼ (25%) of the values are more than this value 95th percentile: 95% percent of the values are less and 5% are more than this value 2011 Colorado Bar Association. All rights reserved. 2

6 Geographic Areas Defined The survey divided Colorado into 11 geographic areas by county for aggregation and reporting key statistics generated from the data. These areas include the following: Downtown Denver (zip codes and 80203) Denver, not Downtown Adams, Arapahoe, Douglas, Elbert, and Jefferson (greater Denver metro area) Boulder and Broomfield El Paso Eagle and Pitkin Mesa Pueblo Larimer and Weld All others east of the Continental Divide* All others west of the Continental Divide** *All others east of the Continental Divide Alamosa; Baca; Bent; Chaffee; Cheyenne; Clear Creek; Conejos; Costilla; Crowley; Custer; Fremont; Gilpin; Huerfano; Jackson; Kiowa; Kit Carson; Lake; Las Animas; Lincoln; Logan; Mineral; Morgan; Otero; Park; Phillips; Prowers; Rio Grande; Saguache; Sedgwick; Teller; Washington; Yuma ** All others west of the Continental Divide Archuleta; Delta; Dolores; Garfield; Grand; Gunnison; Hinsdale; La Plata; Moffat; Montezuma; Montrose; Ouray; Rio Blanco; Routt; San Juan, San Miguel; Summit Some exhibits display these areas in a condensed format to assure adequate statistical representation of the findings. For example, Eagle, Pitkin, El Paso, Mesa, Pueblo, Larimer, and Weld Counties are grouped in a category entitled Outside Metro Areas to distinguish them from Metro Denver, as well as rural areas. Public vs. Private Areas of Practice Defined The survey divided attorneys by legal classification and then further into private and public practitioners. The following legal classifications are assumed to be private practitioners: Solo practitioner with dedicated Of Counsel office outside the home Solo practitioner with home office only Associate in firm with 1 partner/shareholder Solo practitioner sharing space Associate in firm with 2 7 partners/shareholders Solo practitioner with 1 or more associates Associate in firm with 8 29 partners/shareholders Partner in firm with 2 7 partners/shareholders Associate in firm with 30+ partners/shareholders Partner in firm with 8 29 partners/shareholders Judge/Magistrate/Administrative Law Judge (ALJ) (not full-time) also in private practice Partner in firm with 30 + partners/shareholders Contract attorney The following legal classifications are assumed to be public practitioners: Judge/Magistrate/ALJ (full-time) In-House Counsel (for profit organization) Arbitrator/Mediator In-House Counsel (not for-profit organization) City/County Government Counsel with legal aid/legal services agency State Government Law Clerk Federal Government Other 2011 Colorado Bar Association. All rights reserved. 3

7 Descriptions of Survey Respondents and Summary of Findings Male vs. female statistics are offered throughout this Report to enable direct comparisons among genders. Exhibit 1 compares the survey sample with the universe of attorneys. The universe of attorneys represents all active attorneys in Colorado as provided by the Colorado Supreme Court Office of Attorney Registration. Exhibit 1 Comparison of Survey Respondents to Universe of Colorado Attorneys Office Location (Cities & Counties) Universe of Attorneys Percent of Total 2010 Survey Respondents Percent of Total Denver 8, % % Adams, Arapahoe, Douglas, Elbert, and Jefferson 5, % % Boulder and Broomfield 1, % % Eagle and Pitkin % % El Paso 1, % % Mesa % % Pueblo % % Larimer and Weld % % All others east of the Divide All others west of the Divide % % % % Total 19,802 * 100.0% 1, % Gender Male 13, % % Female 7, % % Total 20, % 1,555 ** 100.0% *Does not equal 20,233 because 431 attorneys did not indicate their office location **Does not equal 1,585 because 30 attorneys did not indicate their gender 2011 Colorado Bar Association. All rights reserved. 4

8 Attorney personal income, gross revenue, billing rates, and practice/firm overhead expenses represent 2010 values. Personal income does not include any bonuses that may have been paid. To denote gaps such as the gender gap of reporting incomes, the term proportion is used on selected exhibits. Proportion denotes the median value of one group divided by another. Hypothetically, a reported income of $75,000 for female attorneys divided by $100,000 for male attorneys yields the proportion.75. This would mean that females earn 75 cents on the dollar compared with their male counterparts. Despite the use of the median to reduce the effect of extremely high or low values (outliers), as noted above, readers should use particular caution in interpreting data when only a small number of responses are available. In such cases, readers are advised to group up to a larger geographic area or job classification, where appropriate, to prevent distorting reality. o value is represented if fewer than three responses were reported. Totals do not always reflect the sum of subgroups, because respondents often omit responding to a subgroup (for example, Occupancy Expenses is a subgroup of Total Expenses). Personnel planning and decision making include many factors not covered in surveys of this scope or nature. However, this report provides ranges of values that can help in developing sound and equitable hiring and compensation policies. Unless stated otherwise, all exhibits include both full-time and part-time attorneys Colorado Bar Association. All rights reserved. 5

9 SUMMARY PROFILE OF THE TYPICAL COLORADO ATTOREY AD FIRM This section summarizes key statistics derived from the survey. Emphasis here is on the concerns of the average attorney and the average firm with respect to personal income, hourly billing rates and office expenses and revenues. The following topics are covered: Respondent demographics 2010 hourly billing rates and work volume 2010 office expenses and revenues Trends in key metrics (measures) since the 2000 and 2008 CBA Economic Surveys Respondent Demographics The typical respondent is 46 years of age and has been in practice for 15 years. The average male attorney is 49 years of age and has been in practice 16 years. The average female attorney is 42 years of age and has been in practice for 12 years. Females represent 41% of respondents, down from 43% in 2008 and up from 31% in Approximately 71.5% of respondents are private practitioners. 1 Of the remainder, 12% work in government agencies 2, 8.8% are in-house counsel and the remaining 7.7% are professors, work in legal services organizations, are law clerks, are unemployed, work in non-legal settings, or are retired (all others) (Exhibit 2) Exhibit 2 Distribution of Survey Participants by Practice Classification 1 See Public vs. Private Areas of Practice Defined on page 3. 2 Including Judge/Magistrate/ALJ (full-time), City/County Government, State Government, Federal Government 2011 Colorado Bar Association. All rights reserved. 6

10 Exhibit 3 displays the proportion of survey respondents into seven categories. Exhibit 3 Percent Distribution of Survey Respondents by Practice Classification 2011 Colorado Bar Association. All rights reserved. 7

11 Exhibit 4 distributes the number of survey respondents by both practice classification and gender. Within these groupings, females represent more than 50% of associates, government attorneys, and others, while males represent more than 50% of solo practitioners, partners, in-house counsel, and judges. Exhibit 4 Distribution of Survey Respondents by Practice Classification and Gender Exhibit 5 distributes survey respondents by gender and work status. Exhibit 5 Distribution of Survey Respondents by Gender and Work Status 2011 Colorado Bar Association. All rights reserved. 8

12 Approximately 11% of all attorneys and 21% of private practitioners report that they practice law on a part-time basis. Of the private practitioners that work part-time, 45% are males and 55% are females. Most attorneys who report that they practice part-time are classified as others (about 35% of total part-time attorneys), followed by solo practitioners (about 21%). Full-time is defined as 30 or more hours a week. Parttime is defined as less than 30 hours a week. Exhibit 6 distributes respondents by their work status within various practice classes. For example, on the bottom row, 56% of all solo practitioners are males working fulltime, 23% are females working full-time, and 21% are part-timers. Exhibit 6 Proportion of Respondents by Gender and Work Status Within Practice Classification 2011 Colorado Bar Association. All rights reserved. 9

13 Exhibit 7 distributes survey respondents by their office location for various practice classifications. For example, 51% of all associates work in Downtown Denver, 15% in the remainder of Denver, 14% in the greater Metro area (Adams, Arapahoe, Douglas, Elbert, and Jefferson Counties), 6% in Boulder and Broomfield Counties, and 14% elsewhere in Colorado. Exhibit 7 Distribution of Survey Respondents by Practice Classification and Office Location 2010 Hourly Billing Rates and Work Volume Approximately 82% of private practitioners reported that they have a standard or usual hourly rate that they apply as a guide, starting point, or basis for fee computation. Median values for compensable work time are 30 hours per week (which is 1,500 hours per year based on a 50 week work year) and 45 hours for total hours worked per week, which includes administration, marketing, pro bono and unpaid legal work Colorado Bar Association. All rights reserved. 10

14 2010 Office Expenditures and Revenues The average contribution of each overhead component as a percentage of gross revenues (median values) is summarized as Exhibit 8. Gross 2010 revenue per attorney is $160,000 (median value) and $190,000 (average value). Exhibit 8 Average Distribution of Firm Expenditures as a Percentage of Revenues Exhibits 9a and 9b summarize changes in selected measures reported during the three survey periods covering , , and 2010 values. Different conventions were used for the surveys with respect to years of experience for associates, paralegals, and secretaries. Resultant head-to-head comparisons are not possible. All measures are nominal (unadjusted for inflation). For example, the median billing rate for associates with six to nine years of experience increased 3.8% per year between 2008 and If these changes were adjusted for inflation (about 3% per year), real billing rates for attorneys with six to nine years of experience have remained essentially steady throughout this time period. Most of the results, including average and median attorney personal income, reported annual declines. If these declines were adjusted for inflation, they would be even greater. This phenomenon conforms to the decline in real income growth for many professional services workers throughout the country during this period Colorado Bar Association. All rights reserved. 11

15 Exhibit 9a Selected Benchmarks on the Economics of Practicing Law in Colorado, to 2010 Average Median Responses Average Average % % Ann. Median Median % % Ann / /8 Chng. Chng /8 Chng. Chng. Demographics Age 1,552 2, % 1.4% % 0.0% Years in Practice 1,554 2, % -4.1% % -3.6% Attorney et Income 1,502 2, , , % -2.9% 98, , % -1.0% Hours Worked Billable Hours/week 1,163 2, % -7.9% % -12.5% Total Hours/week 1,543 2, % -4.7% % 0.0% Pro Bono Hours/year % 28.4% % 16.7% Fixed Expenses & Gross Receipts/Attorney Gross Revenues , , % -2.4% 160, , % -1.2% Private Firm Employee Salaries Associates, no exp ,385 70, % -9.8% 55,000 60, % -4.2% Associates, 1-3 yrs ,106 72, % -5.7% 60,000 65, % -3.8% Associates, 4-5 yrs ,653 87, % -3.3% 78,150 80, % -1.2% Associates, 6-9 yrs , , % -1.9% 92,500 95, % -1.3% Associates, 10+ yrs , , % -3.3% 100, , % -5.4% Paralegals, no exp ,572 31, % 2.5% 31,500 32, % -0.8% Paralegals, 1-3 yrs ,220 36, % 1.4% 35,500 36, % -0.7% Paralegals, 4-5 yrs ,836 45, % -2.5% 42,000 45, % -3.3% Paralegals, 6-9 yrs ,229 48, % -0.7% 50,000 49, % 0.4% Paralegals, 10+ yrs ,330 55, % -1.5% 55,000 52, % 2.9% Secretaries, no exp ,731 26, % 7.0% 30,000 25, % 10.0% Secretaries, 1-3 yrs ,635 30, % 5.0% 35,000 30, % 8.3% Secretaries, 4-5 yrs ,015 37, % 1.8% 40,000 37, % 4.1% Secretaries, 6-9 yrs ,754 42, % 3.1% 47,000 42, % 6.0% Secretaries, 10+ yrs ,050 45, % 6.9% 50,000 48, % 2.1% Associate & Paralegal Billing Rates Associates, no exp % 0.6% % 0.0% Associates, 1-3 yrs % 0.5% % 0.0% Associates, 4-5 yrs % -0.1% % 2.6% Associates, 6-9 yrs % -0.7% % 3.8% Associates, 10+ yrs % -2.0% % 2.2% Paralegals, no exp % 2.7% % 3.3% Paralegals, 1-3 yrs % -0.5% % 3.1% Paralegals, 4-5 yrs % 0.9% % 0.0% Paralegals, 6-9 yrs % 0.1% % 0.5% Paralegals, 10+ yrs % 0.2% % 0.0% 2011 Colorado Bar Association. All rights reserved. 12

16 Exhibit 9b Selected Benchmarks on the Economics of Practicing Law in Colorado, to 2010 Average Median Responses Average Average % % Ann. Median Median % % Ann / /2000 Chng. Chng /2000 Chng. Chng. Demographics Age 1,552 1, % 1.4% % -1.1% Years in Practice 1,554 1, % -6.8% % -11.8% Attorney et Income 1,502 1, , , % 9.0% 98,000 76, % 14.5% Hours Worked Billable Hours/week 1, % -6.8% % -12.5% Total Hours/week 1,543 1, % -1.8% % -1.1% Pro Bono Hours/year % 20.0% % 16.7% Fixed Expenses & Gross Receipts/Attorney Gross Revenues , , % -8.5% 160, , % -11.9% Private Firm Employee Salaries Associates, no exp ,385 46, % 11.1% 55,000 40, % 18.8% Associates, 1-3 yrs ,106 57, % 5.7% 60,000 52, % 7.7% Associates, 4-5 yrs ,653 66, % 11.7% 78,150 65, % 10.1% Associates, 6-9 yrs 70 A 98,394 92,500 Associates, 10+ yrs , , % 5.8% 100,000 80, % 12.5% Paralegals, no exp ,572 28, % 9.3% 31,500 28, % 6.3% Paralegals, 1-3 yrs ,220 31, % 9.3% 35,500 30, % 8.2% Paralegals, 4-5 yrs ,836 33, % 13.7% 42,000 35, % 10.0% Paralegals, 6-9 yrs 80 A 48,229 50,000 Paralegals, 10+ yrs ,330 40, % 16.0% 55,000 40, % 18.8% Secretaries, no exp ,731 24, % 13.1% 30,000 25, % 10.0% Secretaries, 1-3 yrs ,635 27, % 12.0% 35,000 28, % 12.5% Secretaries, 4-5 yrs ,015 30, % 13.4% 40,000 33, % 10.2% Secretaries, 6-9 yrs 67 A 44,754 47,000 Secretaries, 10+ yrs ,050 32, % 29.1% 50,000 36, % 19.4% Associate & Paralegal Billing Rates Associates, no exp % 21.2% % 12.5% Associates, 1-3 yrs % 17.7% % 20.0% Associates, 4-5 yrs % 11.2% % 16.7% Associates, 6-9 yrs 71 A Associates, 10+ yrs % 18.3% % 23.4% Paralegals, no exp % 17.0% % 19.0% Paralegals, 1-3 yrs % 20.9% % 20.8% Paralegals, 4-5 yrs % 22.5% % 15.2% Paralegals, 6-9 yrs 86 A Paralegals, 10+ yrs % 27.4% % 21.4% 2011 Colorado Bar Association. All rights reserved. 13

17 2010 Annual Income From Law Practice Introduction The median personal income reported by all responding attorneys for calendar 2010 is $98,000. (average) 2010 personal income is $124,064. The mean personal income for attorneys working full-time is $134,167. There are many influences on attorney income levels. Clues to explain income variation can be derived from seven factors addressed by questions in the survey and summarized below: Practice classification Field of law Years in practice Firm size Office location Gender Work status Personal Income by Practice Classification Exhibit 10 summarizes 2010 personal incomes of attorneys by 25 practice classifications reported by 1,452 respondents (denoted by ). By convention, this and subsequent exhibits providing percentile information offer four data points - the 25 th, 50 th (Median), 75 th and 95 th percentiles - on the variable (item) of interest. For example, 25% of all Of Counsel earn less than $98,125, half earn less than $121,000; half earn more than $121,000 and 25% earn more than $167,500. This range of personal income is large from $25,000 for solo home-based practitioners at the 25th percentile to $650,000 for partners in firms of 30+ partners at the 95 th percentile level. The 2010 mean personal income for Of Counsel is $140,614. Exhibit Attorney Personal Income by Practice Classification (All Attorneys) Practice Classification (Avg.) 25th Median 75th 95th Solo, office outside of home 164 $ 123,018 $ 55,000 $ 100,000 $ 150,000 $ 300,000 Solo, home office 95 67,464 25,000 50,000 88, ,100 Solo with 1 or more associates ,082 58,000 90, , ,200 Space sharer ,229 80, , , ,000 Partner in firm with 2-7 partners ,729 90, , , ,000 Partner in firm with 8-29 partners , , , , ,000 Partner in firm with 30 + partners , , , , ,000 Of Counsel ,614 98, , , ,000 Associate in firm with 1 partner 39 55,872 40,000 55,000 74,000 91,500 Associate in firm with 2-7 partners ,260 62,250 75,000 95, ,500 Associate in firm with 8-29 partners 64 87,625 69,500 82, , ,450 Associate in firm with 30+ partners , , , , ,500 Judge/Magistrate/ALJ (full-time) , , , , ,500 Judge/Magistrate/ALJ & Private Practice 5 216,200 96, , , ,000 Arbitrator/Mediator 10 86,400 45,500 80, , ,750 City/County Government 85 88,668 65,000 84, , ,400 State Government 37 82,979 65,000 80,000 98, ,400 Federal Government 20 99,425 62,000 95, , ,250 In-House Counsel (for-profit org.) ,691 95, , , ,000 In-House Counsel (not-for-profit org.) ,827 63,125 95, , ,000 Counsel with legal aid/legal services agency 9 57,522 42,000 60,500 73,200 82,800 Contract Attorney 18 43,694-27,500 67, ,000 Law Clerk 25 91,156 38,000 43,500 50, ,963 on-legal profession 28 71,393 24,000 59, , ,100 Other All Attorneys 1,452 $ 118,673 $ 70,790 $ 98,899 $ 142,074 $ 228, Colorado Bar Association. All rights reserved. 14

18 Exhibit 11 includes only respondents who report working on a full-time basis. Exhibit Attorney Personal Income by Practice Classification (Full-Time Attorneys Only) Practice Classification (Avg.) 25th Median 75th 95th Solo, office outside of home 160 $ 122,666 $ 55,000 $ 100,000 $ 150,000 $ 300,000 Solo, home office 48 99,714 49,500 80, , ,250 Solo with 1 or more associates ,543 59,500 95, , ,100 Space sharer ,728 80, , , ,000 Partner in firm with 2-7 partners ,704 90, , , ,000 Partner in firm with 8-29 partners , , , , ,000 Partner in firm with 30 + partners , , , , ,000 Of Counsel , , , , ,750 Associate in firm with 1 partner 37 58,892 48,000 56,000 75,000 93,000 Associate in firm with 2-7 partners ,559 62,250 75,000 93, ,500 Associate in firm with 8-29 partners 62 88,435 70,000 82, , ,150 Associate in firm with 30 + partners , , , , ,750 Judge/Magistrate/ALJ (full-time) , , , , ,500 Judge/Magistrate/ALJ & Private Practice 3 306, , , , ,000 Arbitrator/Mediator 6 114,000 81, , , ,750 City/County Government 81 92,109 67,000 85, , ,000 State Government 37 81,763 65,000 80,000 98, ,400 Federal Government 19 98,868 62,000 90, , ,500 In-House Counsel (for-profit org.) ,613 96, , , ,500 In-House Counsel (not-for-profit org.) ,020 62,500 91, , ,200 Counsel with legal aid/legal services agency 7 64,029 52,750 63,500 75,600 83,600 Contract Attorney 10 75,250 55,375 66, , ,000 Law Clerk 25 91,156 38,000 43,500 50, ,963 on-legal profession 20 91,525 57,250 83, , ,500 Other All Attorneys 1,337 $ 128,065 $ 80,205 $ 108,520 $ 154,615 $ 234, Colorado Bar Association. All rights reserved. 15

19 Exhibits 12 and 13 reveal income clustering among 20 practice classifications. There is a large spread of income within most categories, reflecting many different forms and styles of practice. Exhibit 12 Percent Distribution of 2010 Attorney Personal Income by Practice Classification (Private Practitioners Only) et Income ($) Total Solo, home office Solo with 1 or more associates Space sharer Of Counsel Contract Attorney < $40K % 29.3% 12.8% 0.0% 4.5% 27.3% $ K % 13.4% 8.5% 0.0% 6.1% 9.1% $ K % 13.4% 14.9% 20.0% 1.5% 27.3% $ K % 13.4% 10.6% 16.0% 6.1% 0.0% $ K % 6.1% 6.4% 4.0% 7.6% 0.0% $ K % 7.3% 8.5% 4.0% 10.6% 18.2% $ K % 2.4% 4.3% 4.0% 18.2% 0.0% $ K % 3.7% 10.6% 0.0% 6.1% 18.2% $ K % 1.2% 6.4% 16.0% 9.1% 0.0% $ K % 1.2% 0.0% 8.0% 6.1% 0.0% $ K % 1.2% 2.1% 8.0% 4.5% 0.0% $ K % 3.7% 4.3% 4.0% 4.5% 0.0% $ K % 0.0% 0.0% 4.0% 3.0% 0.0% $ K % 1.2% 2.1% 4.0% 1.5% 0.0% $ K % 0.0% 0.0% 0.0% 1.5% 0.0% $250K or more % 2.4% 8.5% 8.0% 9.1% 0.0% Total 1, % 100% 100% 100% 100% 100% Partner in firm with 2-7 partners Column Percents Partner in Partner in firm with 8- firm with partners partners Column Percents Associate in firm with 1 partner Associate in firm with 2-7 partners Associate in firm with 8-29 partners Associate in firm with 30+ partners et Income ($) < $40K % 0.0% 1.6% 13.9% 2.7% 3.1% 0.0% $ K % 0.0% 0.0% 30.6% 14.3% 6.3% 0.0% $ K % 0.0% 1.6% 22.2% 18.4% 15.6% 3.8% $ K % 1.8% 1.6% 22.2% 30.6% 26.6% 2.5% $ K % 1.8% 0.0% 5.6% 10.2% 15.6% 3.8% $ K % 5.4% 1.6% 2.8% 11.6% 15.6% 16.5% $ K % 1.8% 0.0% 2.8% 6.1% 7.8% 27.8% $ K % 12.5% 4.7% 0.0% 1.4% 3.1% 19.0% $ K % 5.4% 3.1% 0.0% 2.0% 4.7% 5.1% $ K % 8.9% 4.7% 0.0% 0.7% 1.6% 7.6% $ K % 3.6% 3.1% 0.0% 0.7% 0.0% 2.5% $ K % 14.3% 0.0% 0.0% 0.7% 0.0% 2.5% $ K % 3.6% 1.6% 0.0% 0.0% 0.0% 1.3% $ K % 3.6% 9.4% 0.0% 0.0% 0.0% 0.0% $ K % 3.6% 7.8% 0.0% 0.7% 0.0% 2.5% $250K or more % 33.9% 59.4% 0.0% 0.0% 0.0% 5.1% Total 1, % 100% 100% 100% 100% 100% 100% 2011 Colorado Bar Association. All rights reserved. 16

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