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

20 Exhibit 13 Percent Distribution of 2010 Attorney Personal Income by Practice Classification (on-private Practitioners Only) et Income ($) Total Judge/ Magistrate/ ALJ (fulltime) Arbitrator/ Mediator City/County Gov. State Gov. Federal Gov. < $40K % 0.0% 11.1% 1.2% 2.7% 0.0% $ K % 0.0% 22.2% 6.0% 13.5% 0.0% $ K % 2.9% 0.0% 22.9% 16.2% 30.0% $ K % 0.0% 22.2% 20.5% 21.6% 10.0% $ K % 8.6% 11.1% 10.8% 21.6% 10.0% $ K % 14.3% 0.0% 18.1% 16.2% 25.0% $ K % 57.1% 0.0% 6.0% 2.7% 5.0% $ K % 5.7% 0.0% 6.0% 2.7% 5.0% $ K % 8.6% 11.1% 7.2% 0.0% 5.0% $ K % 2.9% 22.2% 1.2% 2.7% 5.0% $ K % 0.0% 0.0% 0.0% 0.0% 0.0% $ K 5 1.3% 0.0% 0.0% 0.0% 0.0% 5.0% $ K 2 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% $ K 1 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% $ K 2 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% $250K or more % 0.0% 0.0% 0.0% 0.0% 0.0% Total % 100% 100% 100% 100% 100% In-House In-House Counsel (not Counsel (for for-profit profit org.) org.) Column Percents Column Percents Counsel with legal aid/legal services agency on-legal Profession et Income ($) Law Clerk < $40K % 3.8% 22.2% 41.7% 18.2% $ K % 3.8% 22.2% 37.5% 9.1% $ K % 23.1% 22.2% 4.2% 13.6% $ K % 7.7% 22.2% 0.0% 13.6% $ K % 11.5% 11.1% 8.3% 9.1% $ K % 7.7% 0.0% 4.2% 18.2% $ K % 19.2% 0.0% 4.2% 0.0% $ K % 7.7% 0.0% 0.0% 4.5% $ K % 0.0% 0.0% 0.0% 4.5% $ K % 11.5% 0.0% 0.0% 0.0% $ K % 0.0% 0.0% 0.0% 0.0% $ K 5 2.9% 0.0% 0.0% 0.0% 0.0% $ K 2 1.9% 0.0% 0.0% 0.0% 0.0% $ K 1 1.0% 0.0% 0.0% 0.0% 0.0% $ K 2 1.0% 3.8% 0.0% 0.0% 0.0% $250K or more % 0.0% 0.0% 0.0% 9.1% Total % 100% 100% 100% 100% 2011 Colorado Bar Association. All rights reserved. 17

21 Exhibit 14 displays median 2010 attorney personal income for 23 practice classifications by years in practice of the respondent. Exhibit Median Attorney Personal Income by Years in Practice and Practice Classification Years in Practice All Attorneys Solo, office outside of home Solo, home office Solo with 1 or more associates Space sharer Associate in firm with 1 partner Associate in firm with 2-7 partners Associate in firm with 8-29 partners 5 or < $ 69,000 $ 60,000 $ 25,072 $ 102,500 $ 45,000 $ 50,000 $ 70,000 $ 77,500 6 to 10 98,500 89,000 62, ,000 56,000 80, , to ,000 85,000 49, ,000 74,000 80,000 85,000 94, to , ,000 57, , ,000 71, , ,000 >25 130, ,148 80, ,000 90,000 59, ,000 57,500 Total $ 107,500 $ 90,430 $ 54,764 $ 116,100 $ 87,800 $ 63,200 $ 92,000 $ 86,200 Years in Practice Associate in firm with 30 + partners Partner in firm with 2-7 partners Partner in firm with 8-29 partners Partner in firm with 30 + partners Of Counsel In-House Counsel (for profit org.) In-House Counsel (not for-profit org.) City/County Government 5 or < $ 121,500 $ 59,500 $ - $ - $ - $ 75,000 $ 60,250 $ 58,250 6 to , , , , , , ,500 82, to , , , , , , ,000 84, to , , , , , ,000 95,000 >25 180, , , , , , , ,000 Total $ 116,300 $ 117,500 $ 148,900 $ 214,600 $ 102,400 $ 149,500 $ 112,550 $ 86,700 Years in Practice State Government Federal Government Judge/Magistr ate/alj (fulltime) Arbitrator/ Mediator Counsel with legal aid/legal services agency Contract Attorney Law Clerk 5 or < $ 54,000 $ 67,500 $ 91,500 $ - $ 43,500 $ 64,500 $ 42,250 6 to 10 71, , ,350-87, to 15 90,000 60, ,000 30,000 69,250 30,000 1,117,000 * 16 to , , ,000-33,000 25, ,000 >25 98, , ,000 80,000-97,500 38,000 Total $ 83,250 $ 100,800 $ 91,500 $ 22,000 $ 42,820 $ 43,400 $ 278,613 *The median income for a law clerk with 11 to 15 years of experience most likely represents an input error by one of the survey respondents Colorado Bar Association. All rights reserved. 18

22 Attorneys were asked to select from a list of various fields of law that provided their highest sources of income. Exhibit 15 distributes 2010 personal incomes of all respondents by their reported primary source of income. Exhibits 16 and 17 consider private practitioners only and full-time private practitioners only. Exhibit Attorney Personal Income by Legal Specialization (All Attorneys) Primary Field of Law (Avg.) 25th Median 75th 95th Administrative 21 $ 173,376 $ 80,000 $ 90,500 $ 120,000 $ 250,000 Arbitration/Mediation/ADR 11 87,455 43,500 80, , ,500 Appellate Practice 13 68,236 40,000 50, , ,000 Banking ,700 80,500 95, , ,500 Bankruptcy/Receivership ,032 60,000 95, , ,000 Business/Corporate ,555 75, , , ,500 Civil Rights 10 84,748 53,125 55, , ,150 Construction ,350 78, , , ,200 Collections 21 81,344 60,000 65,000 85, ,000 Communications/Technology 5 241, , , , ,000 Criminal Defense/Private 33 98,039 55,000 75, , ,000 Criminal Defense/Public 11 65,455 45,000 54,000 87, ,000 Domestic Relations/Family/Juvenile ,679 57,841 81, , ,600 Elder 12 82,917 49,500 71, , ,500 Employment/Labor (Defense) ,397 80, , , ,000 Employment/Labor (Plaintiff) ,923 50,000 85, , ,400 Entertainment/Sports/Gaming 3 218, , , , ,000 Environmental ,298 96, , , ,200 Estate Planning/Estate Administration 67 91,499 56,000 80, , ,600 General Practice 24 99,042 53,750 85, , ,050 Government/Public Employee 83 83,821 60,000 79, , ,000 Health and Hospital ,208 96, , , ,000 Immigration and aturalization 15 82,267 60,000 72,000 93, ,000 Indian 7 103,857 68,500 83,000 85, ,500 Insurance (not torts) ,262 74, , , ,000 Intellectual Property , , , , ,000 Judge/Magistrate/ALJ ,979 96, , , ,700 Litigation (civil & commercial) ,970 75, , , ,000 Municipal (public entitiy) ,912 81, , , ,500 atural Resources (oil & gas/mining) ,313 88, , , ,500 Pensions/Profit Sharing/ERISA 8 278, , , , ,500 Personal Injury/Malpractice (Defense) ,114 72, , , ,000 Personal Injury/Malpractice (Plaintiff) ,814 65, , , ,000 Public Benefits (Social Security/Medicare/Medicaid) 5 74,869 25,000 65, , ,000 Public Utilities/Regulated Industries , , , , ,350 Real Property ,347 78, , , ,000 Securities , , , , ,500 Taxation (Corporate) 6 165, , , , ,500 Taxation (Individual/Small Business) 8 102,881 63,750 79, , ,000 Workers' Compensation ,232 91, , , ,200 Other ,202 59, , , ,000 Total 1,419 $ 134,651 $ 78,329 $ 108,423 $ 161,412 $ 283, Colorado Bar Association. All rights reserved. 19

23 Exhibit Attorney Personal Income by Legal Specialization (Private Practitioners Only) Primary Field of Law (Avg.) 25th Median 75th 95th Administrative 13 $ 203,877 $ 62,500 $ 88,900 $ 120,000 $ 720,000 Arbitration/Mediation/ADR Appellate Practice 8 66,759 29,250 45, , ,750 Banking 4 132,925 77, , , ,000 Bankruptcy/Receivership ,308 52,500 93, , ,000 Business/Corporate ,735 65, , , ,000 Civil Rights 6 112,747 55,612 89, , ,750 Construction ,350 78, , , ,200 Collections 17 85,029 60,000 72,000 85, ,000 Communications/Technology Criminal Defense/Private 33 98,039 55,000 75, , ,000 Criminal Defense/Public 7 55,000 35,000 45,000 80,000 88,500 Domestic Relations/Family/Juvenile ,620 60,000 87, , ,700 Elder 11 80,909 49,000 70, , ,000 Employment/Labor (Defense) ,397 80, , , ,000 Employment/Labor (Plaintiff) ,667 48,750 90, , ,700 Entertainment/Sports/Gaming Environmental ,642 98, , , ,000 Estate Planning/Estate Administration 66 91,749 55,500 84, , ,000 General Practice 16 84,625 47,500 65,000 92, ,500 Government/Public Employee 5 74,200 51,000 75, , ,000 Health and Hospital ,750 83, , , ,000 Immigration and aturalization 14 84,929 60,000 75,000 96, ,000 Indian 6 107,000 66,750 77,500 84, ,250 Insurance (not torts) ,688 73, , , ,000 Intellectual Property , , , , ,250 Judge/Magistrate/ALJ 3 97,000 80,500 96, , ,600 Litigation (civil & commercial) ,193 80, , , ,000 Municipal (public entitiy) ,250 75, , , ,250 atural Resources (oil & gas/mining) ,325 81, , , ,000 Pensions/Profit Sharing/ERISA 8 278, , , , ,500 Personal Injury/Malpractice (Defense) ,406 68, , , ,000 Personal Injury/Malpractice (Plaintiff) ,184 63, , , ,500 Public Benefits (Social Security/Medicare/Medicaid) 5 74,869 25,000 65, , ,000 Public Utilities/Regulated Industries 6 195, , , , ,250 Real Property ,210 75, , , ,500 Securities , , , , ,500 Taxation (Corporate) 4 186, , , , ,000 Taxation (Individual/Small Business) 7 77,578 62,500 79,044 87, ,500 Workers' Compensation ,986 91, , , ,450 Other ,200 67, , , ,000 Total 1,047 $ 126,036 $ 68,164 $ 97,499 $ 152,470 $ 280, Colorado Bar Association. All rights reserved. 20

24 Exhibit Attorney Personal Income by Legal Specialization (Full-Time Private Practitioners Only) Primary Field of Law (Avg.) 25th Median 75th 95th Administrative 12 $ 205,450 $ 61,875 $ 86,950 $ 97,500 $ 785,000 Arbitration/Mediation/ADR Appellate Practice 6 79,833 42,500 78, , ,250 Banking 4 132,925 77, , , ,000 Bankruptcy/Receivership ,308 52,500 93, , ,000 Business/Corporate ,595 79, , ,000 Civil Rights 5 124,200 56, , , ,400 Construction ,696 79, , , ,600 Collections 16 89,094 61,125 73,500 86, ,750 Communications/Technology Criminal Defense/Private ,226 59,000 80, , ,000 Criminal Defense/Public 6 60,000 45,000 60,000 82,500 88,750 Domestic Relations/Family/Juvenile ,714 64,500 98, , ,700 Elder 10 86,200 53,750 71, , ,500 Employment/Labor (Defense) , , , , ,000 Employment/Labor (Plaintiff) 9 149,222 70, , , ,600 Entertainment/Sports/Gaming Environmental ,642 98, , , ,000 Estate Planning/Estate Administration 55 97,969 57,250 92, , ,500 General Practice 13 91,769 55,000 65, , ,000 Government/Public Employee Health and Hospital ,316 92, , , ,000 Immigration and aturalization 13 88,923 60,000 78, , ,000 Indian 6 107,000 66,750 77,500 84, ,250 Insurance (not torts) ,688 73, , , ,000 Intellectual Property , , , , ,000 Judge/Magistrate/ALJ Litigation (civil & commercial) ,728 82, , , ,000 Municipal (public entitiy) ,250 75, , , ,250 atural Resources (oil & gas/mining) ,325 81, , , ,000 Pensions/Profit Sharing/ERISA 7 292, , , , ,000 Personal Injury/Malpractice (Defense) ,406 68, , , ,000 Personal Injury/Malpractice (Plaintiff) ,184 63, , , ,500 Public Benefits (Social Security/Medicare/Medicaid) 5 74,869 25,000 65, , ,000 Public Utilities/Regulated Industries 6 195, , , , ,250 Real Property ,814 80, , , ,000 Securities , , , , ,500 Taxation (Corporate) 4 186, , , , ,000 Taxation (Individual/Small Business) 4 86,011 63,750 72,022 94, ,857 Workers' Compensation ,986 91, , , ,450 Other ,629 80, , , ,000 Total 960 $ 126,725 $ 68,595 $ 94,951 $ 151,465 $ 281, Colorado Bar Association. All rights reserved. 21

25 Attorney income increases with tenure as displayed in Exhibit 18. Exhibit Attorney Personal Income by Years in Practice All Attorneys Years in Practice (Avg.) 25th Median 75th 95th 5 or < 340 $ 79,959 $ 50,750 $ 69,000 $ 90,875 $ 145,250 6 to ,528 74,500 98, , , to ,512 80, , , , to ,073 80, , , ,000 > ,691 85, , , ,500 All Attorneys 1,427 $ 131,953 $ 74,100 $ 107,500 $ 156,975 $ 301,550 Full-Time Attorneys Years in Practice (Avg.) 25th Median 75th 95th 5 or < 324 $ 81,875 $ 53,375 $ 70,000 $ 95,000 $ 149,250 6 to ,440 76, , , , to ,534 85, , , , to ,921 90, , , ,000 > ,427 95, , , ,000 All Full-Time Attorneys 1,323 $ 138,039 $ 79,875 $ 110,650 $ 165,625 $ 311,150 Private Practitioners Years in Practice (Avg.) 25th Median 75th 95th 5 or < 248 $ 87,264 $ 54,905 $ 73,500 $ 106,250 $ 150,000 6 to ,230 74, , , , to ,669 80, , , , to ,233 76, , , ,900 > ,543 80, , , ,000 All Private Practitioners 1,054 $ 136,388 $ 72,981 $ 111,100 $ 167,850 $ 317,180 Full-Time Private Practitioners Years in Practice (Avg.) 25th Median 75th 95th 5 or < 236 $ 89,751 $ 57,750 $ 75,000 $ 107,500 $ 154,375 6 to ,620 75, , , , to ,255 85, , , , to ,944 88, , , ,800 > ,967 92, , , ,000 All Full-Time Private Practitioners 970 $ 143,508 $ 79,650 $ 117,400 $ 174,575 $ 324, Colorado Bar Association. All rights reserved. 22

26 Attorney Income by Size of Firm or Organization Exhibit 19 displays 2010 attorney personal income by firm or organization size (measured by the total number of attorneys in the firm or organization). Within the larger firm categories, lower percentile values generally represent associates, while higher percentile values generally represent partners. Median levels, in this exhibit, represent a mix of both categories. Exhibit Attorney Personal Income by Size of Firm or Organization All Attorneys Size of Organization (Avg.) 25th Median 75th 95th (# of Attorneys) $ 109,233 $ 50,000 $ 85,000 $ 143,500 $ 250, ,330 66, , , , ,253 90, , , , , , , , , , , , , , , , , , ,000 > , , , , ,000 All Attorneys 381 $ 243,134 $ 127,893 $ 206,786 $ 319,250 $ 487,949 Full-Time Private Practitioners Size of Organization (Avg.) 25th Median 75th 95th (# of Attorneys) $ 109,150 $ 50,000 $ 86,000 $ 143,500 $ 252, ,330 66, , , , ,112 90, , , , , , , , , , , , , , , , , , ,000 > , , , , ,000 All Attorneys 365 $ 263,930 $ 166,429 $ 248,357 $ 330,500 $ 499, Colorado Bar Association. All rights reserved. 23

27 Attorney Income by Office Location Exhibit 20 displays the 2010 personal income of Colorado attorneys within each of eleven geographic locations by various work status combinations. Exhibit Attorney Personal Income by Office Location All Attorneys Geographic Area (by County) (Avg.) 25th Median 75th 95th Downtown Denver (80202 and 80203) 545 $ 170,564 $ 85,000 $ 125,000 $ 200,000 $ 454,000 Denver, not Downtown ,912 57,875 85, , ,000 Adams, Arapahoe, Douglas, Elbert & Jefferson ,088 60,000 88, , ,000 Boulder and Broomfield ,276 65, , , ,250 Eagle and Pitkin ,115 65,000 75, , ,000 El Paso ,219 65, , , ,000 Mesa 21 88,817 55,000 78, , ,000 Pueblo ,500 58,500 82, , ,000 Larimer and Weld ,473 68,000 98, , ,000 All others east of the Divide ,672 67, , , ,000 All others west of the Divide 41 93,784 58,500 80, , ,000 All Attorneys 1,427 $ 120,493 $ 64,080 $ 92,466 $ 142,474 $ 289,568 Full-Time Attorneys Geographic Area (by County) (Avg.) 25th Median 75th 95th Downtown Denver (80202 and 80203) 523 $ 173,752 $ 86,250 $ 125,000 $ 203,000 $ 459,500 Denver, not Downtown ,570 63,000 95, , ,000 Adams, Arapahoe, Douglas, Elbert & Jefferson ,651 61,000 93, , ,000 Boulder and Broomfield ,626 66, , , ,500 Eagle and Pitkin ,955 68,750 75, , ,500 El Paso ,877 65, , , ,000 Mesa 20 91,658 56,500 78, , ,650 Pueblo ,821 63,000 83, , ,500 Larimer and Weld ,278 75, , , ,500 All others east of the Divide ,591 75, , , ,750 All others west of the Divide ,819 61,020 90, , ,000 All Attorneys Working Full Time 1,323 $ 125,872 $ 67,456 $ 95,977 $ 148,709 $ 298,718 Private Practitioners Geographic Area (by County) (Avg.) 25th Median 75th 95th Downtown Denver (80202 and 80203) 419 $ 185,123 $ 92,250 $ 136,000 $ 220,000 $ 500,000 Denver, not Downtown ,685 57,500 80, , ,000 Adams, Arapahoe, Douglas, Elbert & Jefferson ,819 56,500 82, , ,000 Boulder and Broomfield ,063 65, , , ,000 Eagle and Pitkin ,708 60,750 75, , ,750 El Paso ,529 65,000 92, , ,000 Mesa 19 90,825 53,000 78, , ,300 Pueblo ,042 68,250 83, , ,500 Larimer and Weld ,299 46,500 90, , ,000 All others east of the Divide ,209 65, , , ,000 All others west of the Divide ,962 52,500 92, , ,500 All Private Practitioners 1,054 $ 123,387 $ 62,023 $ 91,727 $ 149,045 $ 298,823 Full-Time Private Practitioners Geographic Area (by County) (Avg.) 25th Median 75th 95th Downtown Denver (80202 and 80203) 403 $ 188,170 $ 95,000 $ 138,000 $ 225,000 $ 500,000 Denver, not Downtown ,759 62,625 83, , ,500 Adams, Arapahoe, Douglas, Elbert & Jefferson ,385 60,000 92, , ,000 Boulder and Broomfield ,773 65, , , ,750 Eagle and Pitkin ,955 68,750 75, , ,500 El Paso ,128 66, , , ,000 Mesa 18 94,093 55,500 83, , ,950 Pueblo ,682 73,500 85, , ,000 Larimer and Weld ,545 48,000 96, , ,000 All others east of the Divide ,755 79, , , ,000 All others west of the Divide ,591 63,750 97, , ,500 All Full-Time Private Practitioners 970 $ 129,894 $ 67,080 $ 97,818 $ 155,199 $ 310, Colorado Bar Association. All rights reserved. 24

28 Gender Variations in Attorney Income Median income for male attorneys exceeds female attorneys for all practice classifications (Exhibit 21). The exhibits in this section provide clues as to the nature of these variations. Exhibit Attorney Median Personal Income by Practice Classification and Gender Exhibit 22 tracks gender-specific income levels by respondents years in practice. The proportion of median income earned by female compared with male attorneys is denoted by Gender Gap. Young female attorneys have a higher income than male attorneys, however older male attorneys are higher paid in the 16 to 25 years in practice category. Exhibit Median Attorney Personal Income by Gender and Years in Practice All Attorneys Females Years in Practice All Males Only Only Gender Gap All Males Only Private Practitioners Only Females Only Gender Gap 5 or < $ 69,000 $ 69,000 $ 70, % $ 73,500 $ 75,000 $ 73, % umber of Respondents to 10 98, ,500 90, % 112, ,000 90, % umber of Respondents to , , , % 140, , , % umber of Respondents to , , , % 160, , , % umber of Respondents >25 130, , , % 181, , , % umber of Respondents All Respondents $ 107,500 $ 117,475 $ 98, % $ 133,635 $ 121,000 $ 103, % umber of Respondents 1, , Colorado Bar Association. All rights reserved. 25

29 Attorneys working on a part-time vs. full-time basis also are influenced by gender as shown in Exhibits 23 and 24. Overall, there is a slightly larger gap among part-time attorneys (87.7%) than full-time attorneys (89.1%). Caution is warranted interpreting these statistics on years in practice basis because of the small number of part-time attorneys in the sample. The smallest gender gap is found among all full-time attorneys. Exhibit Median Attorney Personal Income by Gender, Work Status, and Years in Practice All Full-Time Attorneys All Part-Time Attorneys Years in Practice Males Only Females Only Gender Gap Males Only Females Only Gender Gap 5 or < $ 69,000 $ 70, % $ 25,000 $ 30, % umber of Respondents to ,500 93, % 82,500 47, % umber of Respondents to , , % 100,000 36, % umber of Respondents to , , % 40,000 55, % umber of Respondents >25 140, , % 60,000 52, % umber of Respondents All Respondents $ 118,500 $ 104, % $ 61,500 $ 44, % umber of Respondents Exhibit Median Attorney Personal Income by Gender, Work Status, and Years in Practice (Private Practitioners Only) Full-Time Private Practitioners Part-Time Private Practitioners Years in Practice Males, Females, working fulltimtime Gender working full- Gap Males, working part-time Females, working part-time Gender Gap 5 or < $ 75,000 $ 75, % $ 22,500 $ 31, % umber of Respondents to ,000 93, % 82,500 47, % umber of Respondents to , , % 100,000 42, % umber of Respondents to , , % 40,000 47, % umber of Respondents >25 150, , % 60,000 60, % umber of Respondents All Respondents $ 125,900 $ 111, % $ 61,000 $ 45, % umber of Respondents Firm Operating Profit In 2010, 38% of firms reported that their bottom line profit was better than in the previous year. In the same year, 32% of firms reported their bottom line was less than in 2009, and 30% reported that their bottom line was about the same Colorado Bar Association. All rights reserved. 26

30 Cost cutting measures were not taken by 32% of firms, while 45% of firms did minor cost cutting, and 23% of firms undertook a significant amount of cost cutting. Of those firms that did cut costs in 2010, 17% of those firms reported layoffs, while the other 83% of firms cutting costs did not report layoffs and focused on other measures for cutting costs. Within the first 6 months of 2011, 39% of the firms reported an increase in their level of business, 22% reported a decrease in business, and 39% reported that business stayed about the same. Exhibit 25 displays 2010 the percentages of firm profitability. For example, 58% of firms reported a profit of over 7%, while 12% of firms reported a loss. Exhibit 25 Distribution of Firms Operating Profit Before Distributions to Partners as a Percentage of Revenues 2011 Colorado Bar Association. All rights reserved. 27

31 Law Firm Billing Rates and Billing Practices Hourly Billing Rates for Associates and Paralegals The distribution of hourly billing rates for associates and paralegals is summarized by years of experience in Exhibit 26. Exhibit Hourly Billing Rates for Associates and Paralegals by Years of Experience (Avg.) 25th Median 75th 95th Associates Associates w/o exp $ 136 $ 150 $ 165 $ 200 Associates with 1-3 yrs exp Associates with 4-5 yrs exp Associates with 6-9 yrs exp Associates with 10 + yrs exp Paralegals Paralegals w/o exp $ 60 $ 80 $ 95 $ 134 Associates with 1-3 yrs exp Associates with 4-5 yrs exp Associates with 6-9 yrs exp Associates with 10 + yrs exp Firm size and office location are associated with variations in associate billing rates, with tenure dominating that influence. (Exhibits 27 and 28) Exhibit Associate Billing Rates by Firm Size (Avg.) Minimum 25th Median 75th 95th Maximum 2-5 Attorneys o experience $ 147 $ 100 $ 123 $ 135 $ 175 $ 200 $ yrs exp yrs exp yrs exp yrs exp Attorneys o experience $ 161 $ 125 $ 145 $ 160 $ 165 $ 207 $ yrs exp yrs exp yrs exp yrs exp Attorneys o experience $ 163 $ 125 $ 150 $ 165 $ 175 $ 193 $ yrs exp yrs exp yrs exp yrs exp Colorado Bar Association. All rights reserved. 28

32 Exhibit Associate Billing Rates by Office Location Downtown Denver (Avg.) Minimum 25th Median 75th 95th Maximum o experience $ 168 $ 135 $ 150 $ 163 $ 178 $ 211 $ yrs exp yrs exp yrs exp yrs exp Denver, not downtown o experience $ 153 $ 125 $ 125 $ 140 $ 175 $ 195 $ yrs exp yrs exp yrs exp yrs exp Greater Metro Area o experience $ 146 $ 100 $ 123 $ 150 $ 163 $ 190 $ yrs exp yrs exp yrs exp yrs exp Boulder & Broomfield o experience $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ yrs exp yrs exp yrs exp yrs exp All Others o experience $ 150 $ 135 $ 146 $ 150 $ 154 $ 163 $ yrs exp yrs exp yrs exp yrs exp Colorado Bar Association. All rights reserved. 29

33 Similarly, firm size and office location are associated with variations in paralegal hourly billing rates, with tenure dominating that influence. (Exhibits 29 and 30) Exhibit Paralegal Billing Rates by Firm Size (Avg.) Minimum 25th Median 75th 95th Maximum Downtown Denver o experience $ 91 $ 25 $ 80 $ 90 $ 100 $ 144 $ yrs exp yrs exp yrs exp yrs exp Denver, not downtown o experience $ 76 $ 40 $ 64 $ 78 $ 85 $ 101 $ yrs exp yrs exp yrs exp yrs exp Greater Metro Area o experience $ 71 $ 30 $ 58 $ 70 $ 86 $ 105 $ yrs exp yrs exp yrs exp yrs exp Boulder & Broomfield o experience $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ yrs exp yrs exp yrs exp yrs exp All Others o experience $ 86 $ 35 $ 75 $ 80 $ 100 $ 130 $ yrs exp yrs exp yrs exp yrs exp Colorado Bar Association. All rights reserved. 30

34 Exhibit Paralegal Billing Rates by Office Location Downtown Denver (Avg.) Minimum 25th Median 75th 95th Maximum o experience $ 91 $ 25 $ 80 $ 90 $ 100 $ 144 $ yrs exp yrs exp yrs exp yrs exp Denver, not downtown o experience $ 76 $ 40 $ 64 $ 78 $ 85 $ 101 $ yrs exp yrs exp yrs exp yrs exp Greater Metro Area o experience $ 71 $ 30 $ 58 $ 70 $ 86 $ 105 $ yrs exp yrs exp yrs exp yrs exp Boulder & Broomfield o experience $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ yrs exp yrs exp yrs exp yrs exp All Others o experience $ 86 $ 35 $ 75 $ 80 $ 100 $ 130 $ yrs exp yrs exp yrs exp yrs exp Colorado Bar Association. All rights reserved. 31

35 Unit Costs for Mileage, Photocopying, and Legal Research Firms vary as to the methods they bill clients for disbursements, as reflected by distributions of client billing method and unit charges to clients (Exhibit 31). Exhibit 31 Distribution of Unit Charges Used for Billing Clients by Firm Size Percent of Responses Size of Firm Included in Hourly Rate Flat Rate Itemized ot charged Total 1 Mileage 27.1% 1.1% 30.0% 41.8% 100.0% Phototcopying 20.6% 2.5% 43.7% 33.2% 100.0% Computerized Research 33.9% 2.2% 34.9% 29.0% 100.0% Phone, long distance, fax 30.0% 2.5% 12.6% 54.9% 100.0% Postage 19.9% 1.8% 45.1% 33.2% 100.0% 2-5 Mileage 23.3% 0.0% 34.5% 42.2% 100.0% Phototcopying 12.1% 1.7% 49.1% 37.1% 100.0% Computerized Research 25.8% 4.1% 45.4% 24.7% 100.0% Phone, long distance, fax 30.2% 1.7% 17.2% 50.9% 100.0% Postage 19.8% 0.9% 42.2% 37.1% 100.0% 6-14 Mileage 15.2% 0.0% 66.7% 18.1% 100.0% Phototcopying 15.2% 6.1% 60.6% 18.1% 100.0% Computerized Research 15.2% 3.0% 66.7% 15.1% 100.0% Phone, long distance, fax 30.3% 3.0% 30.3% 36.4% 100.0% Postage 24.2% 3.0% 42.4% 30.4% 100.0% 15 + Mileage 8.0% 0.0% 68.0% 24.0% 100.0% Phototcopying 20.0% 0.0% 64.0% 16.0% 100.0% Computerized Research 4.0% 0.0% 92.0% 4.0% 100.0% Phone, long distance, fax 24.0% 0.0% 36.0% 40.0% 100.0% Postage 24.0% 0.0% 36.0% 40.0% 100.0% All Firms Mileage 23.2% 0.6% 36.0% 40.2% 100.0% Phototcopying 16.9% 2.4% 47.2% 33.5% 100.0% Computerized Research 26.9% 2.7% 45.7% 24.7% 100.0% Phone, long distance, fax 29.6% 2.1% 16.9% 51.4% 100.0% Postage 19.3% 1.3% 44.2% 35.2% 100.0% 2011 Colorado Bar Association. All rights reserved. 32

36 Billing Patterns For firms using paralegals, the following client billing patterns were reported: Billing Pattern for Paralegals % of Responses Included in attorney's rate % Time basis % Other system % Exhibit 32 displays the impact of firm size on methods chosen for client billing. Exhibit 32 Distribution of Client Billing Methods Used for Paralegal Services by Firm Size Percent of Responses Size of Firm Incl. in Attorney Fee Time Basis Other System Total % 38.3% 42.2% 100.0% % 56.9% 19.0% 100.0% % 69.7% 9.1% 100.0% % 84.0% 8.0% 100.0% All 21.3% 47.2% 31.5% 100.0% 2011 Colorado Bar Association. All rights reserved. 33

37 Use of Credit Cards Overall, 37% of private practitioners accept credit cards from clients for payment. The largest potential future growth in usage is among solo practitioners and two attorney firms as shown in Exhibit 33. Exhibit 33 Use of Credit Cards by Firm Size Addition of a Service Charge Frequency of Adding Service Charge % of Responses Always % Sometimes % ever % Total % Monthly Interest Rate Charged On Unpaid Balances % of Responses < 1% 10 4% 1-2% 57 21% > 2% % Total % 2011 Colorado Bar Association. All rights reserved. 34

38 Uncollectables are a problem in many firms, as shown: Percent of Fees Billed That are Uncollectable % of Responses Less Than or Equal to 2% % 3-8% % 9-12% 90 17% Equal to or Greater Than 13% % Total % Other Aspects of Law Office Economics of Colorado Attorneys This section summarizes various economic aspects of the private practice of law in Colorado. The following topics are discussed: Law office gross receipts Staffing patterns for secretaries and paralegals Salary levels for associates, paralegals and secretaries Legal services marketing and advertising practices Gross Receipts per Attorney Solo practitioners and firms provided financial information on 2010 gross revenues per attorney. The following Exhibits summarize gross receipts per attorney by firm size and office location. Exhibit 34 Median Values for Offices by Geographic Location Downtown Denver Median Values for Offices by Geographic Location Denver, not Greater Metro Downtown Area Boulder Broomfield Outstate Metro Area East of Divide West of Divide Annual gross receipts per attorney $ 257,000 $ 166,667 $ 120,000 $ 130,000 $ 152,000 $ 140,000 $ 140,000 umber of responses Exhibit 35 Median Values for Size of Firm Median Values for Size of Firm All Firms Annual gross receipts per attorney $ 113,000 $ 157,250 $ 210,000 $ 286,357 $ 273,262 $ 160,000 umber of responses Colorado Bar Association. All rights reserved. 35

39 Support Staff Staffing Patterns The ratio of secretaries to attorneys and paralegals to attorneys varies by firm size, as shown in Exhibits 36 and 37. For example, 29% of responding firms with one to ten attorneys have one paralegal for two attorneys (ratio equals.5), while 63% of large firms (those with more than 25 attorneys) report a ratio of one paralegal for four or more attorneys (ratio equals <.25). Exhibit 36 Ratio of Paralegals to Attorneys by Firm Size Percent Distribution by Size of Firm Ratio of Paralegal to Attorneys All > 25 <.25 16% 30 8% 55% 63% % 32 15% 23% 38% % 47 29% 0% 0% % 21 10% 18% 0% 1 24% 47 28% 5% 0% > 1 8% 15 9% 0% 0% Total 100% % 100% 100% Exhibit 37 Ratio of Secretaries to Attorneys by Firm Size Percent Distribution by Size of Firm Ratio of Secretary to Attorneys All > 25 <.5 43% 80 34% 90% 89% % 45 29% 0% 0% % 19 11% 5% 11% 1 18% 34 21% 5% 0% > 1 3% 6 4% 0% 0% Total 100% % 100% 100% Exhibit 38 compares the effects of the presence of administrators on median gross revenues per attorneys within three firm-size groupings. Exhibit 38 Revenues/Attorney by Firm Size & Presence of Administrators Size of Firm umber of Adminstrators 1 to 10 Median 11 to 25 Median >25 Median All Firms Median one 226 $ 120,000 - $ - - $ $ 120, $ 175, $ 264,053 3 $ 404, $ 263, $ 203,755 - $ - 3 $ 300,000 8 $ 251, $ - - $ - - $ - 3 $ 4,500 * *The median income for a firm with over five administrators most likely represents an input error by one of the survey respondents Colorado Bar Association. All rights reserved. 36

40 Starting and Current Salary Levels for Associates, Paralegals, and Secretaries Exhibit 39 distributes 2010 salary levels for four categories of associates, paralegals and secretaries. Exhibit Annual Compensation of Associates, Paralegals, and Secretaries by Years of Experience (Avg.) 25th Median 75th 95th Associates Associates without exp 46 51,829 $ 40,000 $ 52,500 $ 60,000 $ 80,000 Associates with 1-3 yrs exp 93 62,151 50,000 60,000 70, ,000 Associates with 4-5 yrs exp 80 80,834 67,750 77,889 90, ,000 Associates with 6-9 yrs exp 74 94,829 75,000 90, , ,000 Associates with 10 + yrs exp ,698 75, , , ,000 Paralegals Paralegals without exp 47 31,042 $ 25,000 $ 30,000 $ 40,000 $ 48,500 Paralegals with 1-3 yrs exp 90 34,829 29,025 35,000 40,000 52,750 Paralegals with 4-5 yrs exp 80 41,297 32,000 42,000 50,000 61,120 Paralegals with 6-9 yrs exp 85 46,142 37,000 50,000 55,000 69,800 Paralegals with 10 + yrs exp ,454 40,000 52,000 60,000 80,000 Secretaries Secretaries without exp 54 28,431 $ 24,250 $ 30,000 $ 35,000 $ 40,677 Secretaries with 1-3 yrs exp 92 32,349 25,000 35,000 39,640 46,900 Secretaries with 4-5 yrs exp 78 40,049 30,000 40,000 45,000 55,530 Secretaries with 6-9 yrs exp 71 45,525 35,000 47,000 50,000 63,550 Secretaries with 10 + yrs exp ,553 36,000 50,000 56,000 70,450 Salaries by Firm Size and Office Location Exhibits 40 to 45 summarize the impact of 2010 associate, paralegal, and secretary compensation levels based on firm size and office location. Exhibit Associate Compensation by Firm Size (Avg.) Minimum 25th Median 75th 95th Maximum 2-5 Attorneys o experience $ 46,371 $ 13,200 $ 40,000 $ 43,500 $ 60,000 $ 71,400 $ 74, yrs exp 54,120 30,000 44,000 55,000 65,000 75,600 85, yrs exp 70,921 40,000 60,000 70,000 75,000 93, , yrs exp 90,190 45,000 75,000 85, , , , yrs exp 97,077 30,000 72,750 90, , , , Attorneys o experience $ 56,182 $ 40,000 $ 52,500 $ 55,000 $ 59,000 $ 75,000 $ 80, yrs exp 64,021 42,000 54,625 60,000 70,000 85, , yrs exp 82,892 50,000 70,000 80,000 90, , , yrs exp 88,471 55,000 75,000 90, , , , yrs exp 108,617 90, , , , , , Attorneys o experience $ 64,414 $ 10,000 $ 52,778 $ 60,000 $ 71,500 $ 112,500 $ 115, yrs exp 81,207 55,000 62,500 75,000 92, , , yrs exp 96,599 67,000 80,000 90, , , , yrs exp 110,616 72,000 89, , , , , yrs exp 138,316 11, , , , , , Colorado Bar Association. All rights reserved. 37

41 Exhibit Paralegal Compensation by Firm Size (Avg.) Minimum 25th Median 75th 95th Maximum 2-5 Attorneys o experience $ 30,871 $ 13,200 $ 25,750 $ 31,000 $ 38,750 $ 40,000 $ 40, yrs exp 34,571 24,000 30,000 35,000 38,000 50,000 50, yrs exp 37,909 20,000 30,500 40,000 42,000 54,650 61, yrs exp 42,650 20,000 34,500 41,500 50,750 60,000 60, yrs exp 49,897 10,000 45,000 50,000 56,759 75,000 85, Attorneys o experience $ 31,188 $ 500 $ 30,000 $ 30,500 $ 34,750 $ 49,750 $ 55, yrs exp 42,044 25,000 34,500 40,000 45,000 66,250 85, yrs exp 45,864 5,000 38,500 45,000 55,000 68, , yrs exp 50,167 20,000 42,500 50,000 55,000 74,500 85, yrs exp 58,883 22,000 52,500 58,000 64,500 79, , Attorneys o experience $ 40,455 $ 28,000 $ 35,000 $ 42,000 $ 45,000 $ 50,000 $ 50, yrs exp 43,571 30,000 38,500 43,000 49,500 56,750 60, yrs exp 51,727 36,000 47,500 50,000 55,000 66,886 75, yrs exp 57,280 40,000 50,000 56,500 60,500 70,250 75, yrs exp 66,461 51,000 60,000 65,000 71,250 80,450 89,000 *The numbers that are significantly smaller than the others are most likely an input error by one of the survey respondents. Exhibit Secretary Compensation by Firm Size (Avg.) Minimum 25th Median 75th 95th Maximum 2-5 Attorneys o experience $ 24,767 $ 6,500 $ 22,000 $ 25,000 $ 30,000 $ 35,900 $ 38, yrs exp 30,848 18,000 24,000 28,000 35,500 49,000 55, yrs exp 32,545 1,000 25,000 30,000 40,000 45,000 65, yrs exp 39,903 25,000 30,000 36,000 46,000 66,000 70, yrs exp 44,536 24,000 35,750 45,000 50,500 58,600 90, Attorneys o experience $ 29,208 $ 500 $ 29,000 $ 30,500 $ 35,750 $ 40,000 $ 40, yrs exp 34, ,000 36,000 40,000 45,000 45, yrs exp 40,357 30,000 35,250 43,000 45,000 48,050 50, yrs exp 47,333 32,000 42,500 50,000 50,000 57,300 65, yrs exp 54,879 45,000 50,000 55,000 58,000 66,000 75, Attorneys o experience $ 37,227 $ 25,000 $ 33,250 $ 40,000 $ 40,000 $ 46,500 $ 50, yrs exp 42,950 35,000 39,000 45,000 45,975 50,960 52, yrs exp 48,424 38,000 44,250 48,000 50,000 59,517 65, yrs exp 52,089 42,000 50,000 51,000 54,750 60,315 62, yrs exp 83,895 52,500 55,750 60,000 66,250 97, ,001 *The numbers that are significantly smaller than the others are most likely an input error by one of the survey respondents Colorado Bar Association. All rights reserved. 38

42 Exhibit Paralegal Compensation by Office Location (Avg.) Minimum 25th Median 75th 95th Maximum Downtown Denver o experience $ 37,679 $ 500 $ 32,250 $ 40,000 $ 45,000 $ 51,750 $ 55, yrs exp 42,636 25,000 35,000 42,000 48,750 60,000 70, yrs exp 48,353 10,000 42,000 50,000 55,000 65,000 75, yrs exp 55,023 20,000 50,000 58,500 61,500 73,750 85, yrs exp 63,979 22,000 54,000 65,000 75,000 91, ,000 Denver, not downtown o experience $ 30,167 $ 20,000 $ 24,750 $ 28,500 $ 33,750 $ 42,500 $ 45, yrs exp 31,713 6,000 28,000 32,000 40,000 48,600 50, yrs exp 40,066 5,000 32,500 45,000 47,250 52,400 55, yrs exp 41, ,000 50,000 54,000 58,800 60, yrs exp 55,613 18,000 50,000 56,000 64,000 78,000 85,000 Greater Metro Area o experience $ 28,667 $ 20,000 $ 25,000 $ 28,000 $ 30,000 $ 40,000 $ 40, yrs exp 32,337 6,392 30,000 32,500 40,000 42,750 45, yrs exp 38,917 28,000 31,500 35,500 46,250 52,250 55, yrs exp 44,154 30,000 39,000 42,000 50,000 57,000 60, yrs exp 44,240 10,000 38,000 45,000 55,440 65,000 65,000 Boulder & Broomfield o experience $ 29,050 $ 13,200 $ 25,800 $ 32,500 $ 35,750 $ 37,550 $ 38, yrs exp 32,800 25,000 30,000 30,000 39,000 39,800 40, yrs exp 39,000 30,000 36,000 42,000 43,500 44,700 45, yrs exp 44,000 32,000 41,000 50,000 50,000 50,000 50, yrs exp 49,318 24,000 43,000 50,000 57,500 63,250 65,000 All Others o experience $ 26,876 $ 2,000 $ 23,667 $ 30,000 $ 34,000 $ 38,310 $ 40, yrs exp 32,478 10,000 25,000 32,500 37,250 49,500 85, yrs exp 37,537 11,000 30,000 38,000 42,000 59, , yrs exp 39,822 11,000 35,000 40,000 45,760 50,000 53, yrs exp 41,840 11,000 34,250 42,500 50,000 60,000 64, Colorado Bar Association. All rights reserved. 39

43 Exhibit Secretary Compensation by Office Location Downtown Denver (Avg.) Minimum 25th Median 75th 95th Maximum o experience $ 33,219 $ 500 $ 28,750 $ 36,500 $ 40,000 $ 42,500 $ 50, yrs exp 39,796 20,000 35,500 40,000 45,450 51,840 55, yrs exp 46,897 30,000 44,000 46,000 50,000 64,353 65, yrs exp 50,657 28,000 50,000 50,000 53,500 61,890 70, yrs exp 68,697 22,000 53,000 55,000 59,000 79, ,001 Denver, not downtown o experience $ 28,682 $ 20,000 $ 22,000 $ 30,000 $ 31,750 $ 39,000 $ 43, yrs exp 33,000 24,000 25,250 33,500 38,750 45,350 46, yrs exp 38,246 24,000 30,000 40,000 43,500 51,050 53, yrs exp 46,500 25,000 30,000 50,000 60,000 65,000 65, yrs exp 48,550 30,000 37,400 50,000 56,000 67,000 75,000 Greater Metro Area o experience $ 24,722 $ 6,500 $ 17,000 $ 26,000 $ 30,000 $ 36,800 $ 40, yrs exp 30,101 7,000 25,000 28,000 37,760 41,500 45, yrs exp 30,778 1,000 25,000 32,000 38,000 46,800 48, yrs exp 41,136 26,000 35,750 41,000 46,500 52,200 54, yrs exp 42,000 7,000 29,750 42,000 52,500 66,250 70,000 Boulder & Broomfield o experience $ 18,250 $ 7,000 $ 11,500 $ 19,000 $ 25,750 $ 27,550 $ 28, yrs exp 29,200 25,000 25,000 28,000 29,000 37,000 39, yrs exp 31,375 25,000 29,250 30,000 32,250 39,650 40, yrs exp 34,833 20,000 30,500 33,000 40,750 48,250 50, yrs exp 40,250 24,000 32,000 38,000 49,000 58,000 60,000 All Others o experience $ 26,695 $ 11,000 $ 24,500 $ 30,000 $ 30,000 $ 34,500 $ 35, yrs exp 27,982 11,000 25,000 28,000 35,000 37,900 39, yrs exp 29,669 2,500 24,750 30,600 37,000 42,250 43, yrs exp 39,085 11,000 35,500 40,000 45,500 50,000 50, yrs exp 36,629 4,000 27,750 36,000 45,000 60,000 70,000 *The numbers that are significantly smaller or larger than the others are most likely an input error by one of the survey respondents Colorado Bar Association. All rights reserved. 40

44 Exhibit Associate Compensation by Office Location Downtown Denver (Avg.) Minimum 25th Median 75th 95th Maximum o experience $ 62,000 $ 10,000 $ 47,500 $ 60,000 $ 70,000 $ 111,500 $ 115, yrs exp 73,419 35,000 60,000 70,000 82, , , yrs exp 93,167 67,000 77,000 85, , , , yrs exp 109,125 70,000 89, , , , , yrs exp 125,172 11, , , , , ,000 Denver, not downtown o experience $ 48,500 $ 5,000 $ 43,750 $ 55,000 $ 60,000 $ 65,200 $ 68, yrs exp 59,688 30,000 49,500 55,000 66,250 99, , yrs exp 88,144 60,000 70,000 78, , , , yrs exp 85,000 65,000 80,000 85,000 90,000 98, , yrs exp 85,500 18,000 77,500 95, , , ,000 Greater Metro Area o experience $ 40,000 $ 30,000 $ 36,250 $ 40,000 $ 40,000 $ 51,250 $ 55, yrs exp 48,583 24,000 43,000 50,000 56,250 64,500 70, yrs exp 69,300 55,000 60,000 65,000 82,500 85,550 86, yrs exp 71,444 18,000 70,000 75,000 95,000 98, , yrs exp 92,143 55,000 76,250 95, , , ,000 Boulder & Broomfield o experience $ 44,550 $ 13,200 $ 33,300 $ 45,000 $ 56,250 $ 71,250 $ 75, yrs exp 63,833 53,500 56,750 60,000 69,000 76,200 78, yrs exp 77,000 70,000 73,500 77,000 80,500 83,300 84, yrs exp 73,000 73,000 73,000 73,000 73,000 73,000 73, yrs exp 66,625 40,000 53,313 66,625 79,938 90,588 93,250 All Others o experience $ 45,414 $ 20,000 $ 35,000 $ 45,000 $ 57,778 $ 67,000 $ 74, yrs exp 55,207 10,000 46,250 60,000 65,000 75,000 77, yrs exp 65,987 20,000 54,000 70,000 77,777 95, , yrs exp 79,486 14,000 66,500 78,889 92, , , yrs exp 83,300 13,000 30,000 82, , , , Colorado Bar Association. All rights reserved. 41