Exhibit 2.8 Total Compensation

О Highest partner

Lowest partner

700 О Managing partner □ Executive partner 600 500

400 300 В 200 13 100 0

О Average partner

5 to 14 15 to 29 30 to 49 50 to 99

Number of attorneys in firm

Over 100

Exhibit 2.9 Median Total Compensation by Firm Size

Average Total Expenses per Lawyer. Contrary to intuition, there appear to be no economies of scale in a private legal practice, as Exhibit 2.11 demonstrates. Larger firms almost always spend more per lawyer on staffing, occupancy, equipment, promotion, malpractice and other nonpersonnel insurance coverage, office supplies, and other expenses than do smaller firms.19 This is

Exhibit 2.10 Average Income and Expenses per Lawyer as a Percentage of Receipts

Exhibit 2.11 Average Total Expenses per Lawyer

likely due to firms spending more on such things as their size increases to improve productivity, firm perception, and so on. For example, a successful firm may move into a more upscale office space.

benchmarking the finance department

The finance and accounting department in a professional services firm provides nearly the same functions as that of any other industry. In a professional services firm, a well-functioning department is critical to delivering outstanding client service. The primary business objective of a finance department is to provide accounting services and financial information in an efficient, accurate, and timely manner. A finance department includes the following processes:

Accounts receivable Accounts payable Billing Payroll

Travel and entertainment accounting Financial reporting (closing the books)