FEE ARRANGEMENTS In 2010 how much will your company spend on outside legal counsel?

$0-$100,000

2010 16% 23% 14% 46%

2009 13% 24% 14% 49%

$100,001-$500,000 $500,001-$1,000,000 More than $1,000,000 In 2010, approximately what percent of your outside counsel spend is or will be valued through an arrangement that is not based solely on hourly, discounted or blended rates, but which includes fee arrangements incorporating incentives, caps, alternative providers, pricing fixed by stage, matter, portfolio, contingency arrangements, etc.?
0-5% 6-10% 11-15% 16-20% 21-25% 26-30% 31-40% 41-50% 51+%

2010

2009

53% 14% 7% 6% 5% 3% 4% 3% 6%

55% 14% 6% 6% 4% 2% 3% 3% 6%

In 2010 approximately what percent of your company's matters handled by outside counsel included such alternative components?
0-5% 6-10% 11-15% 16-20% 21-25% 26-30% 31-40% 41-50% 51+%

2010 56% 15% 6% 7% 4% 2% 2% 4% 5%

2009 59% 12% 5% 6% 4% 2% 2% 3% 7%

Compared the previous year, has work billed on other than an hourly rate basis increased, decreased, or remained the same?
Increased Decreased

2010 29% 9%

2009 39% 8%

Stayed the same

62%

53%

If you anticipate an increase or decrease for question 4, please estimate the percentage increase or decrease:
More than -30% -21 to -30% -11 to -20% -1 to -10% 0 to 10% 11 to 20% 21 to 30% More than 30%

2010 2% 2% 0% 2% 53% 23% 9% 8%

2009 2% 0% 3% 3% 42% 23% 13% 13%

What kinds of alternative fee arrangements have you used in 2010? (check all that apply) Flat fee for an entire matter Flat fees for some stages of a matter Contingency fees Incentive or success fees Disincentive or failure fees Collars, caps, etc. Periodic retainer fee for a portfiolio of services None Other

2010 53% 34% 20% 18% 3% 30% 18% 22% 5%

2009 48% 36% 19% 19% 2% 25% 20% 24% 7%

If your outside firms have used alternative staffing arrangements this year, please indicate which they have used: (check all that apply) Secondments Shared staffing Work outsourced to a third party and handled by non lawyers Work outsourced to a third party and handled by lawyers Work handled by contract lawyers at the firm and/or in the legal department None Other 2010 12% 4% 10% 12% 13% 67% 1% 2009 10% 3% 8% 10% 18% 67% 1%

If applicable, who initiated the alternative fee arrangements that you used in 2010? The law department Law firms Some of both Does not apply

2010 51% 3% 20% 26%

2009 54% 3% 18% 26%

Do you think that more or fewer firms are willing to discuss changing their fee or service structures to offer you alternative arrangements? More firms Fewer firms About the same Don't know 2010 61% 4% 21% 15% 2009 64% 3% 17% 16%

Have you ever started working with a new firm because they offer alternative services or fee arrangements? Yes No

2010 26% 74%

2009 N/A N/A

Have you ever stopped working with a firm because they didn't offer alternative services or fee arrangements? Yes No

2010 13% 87%

2009 N/A N/A

In 2010, did you require some of your firms to: (check all that apply) Cut back their proposed hourly rates Offer discounts on billable hours Offer alternative fee arrangements None of the above

2010 38% 61% 39% 24%

2009 34% 54% 31% 31%

If you have not used alternative fee arrangements in 2010, do you plan to try to implement them in 2011? Yes No Not Applicable In your judgment, what is the biggest reason why there have not been more alternative fee billing arrangements? Law firms are comfortable with the billable hour Clients are comfortable with the billable hour Many law firms and clients have insufficient experience defining or managing work on an alternative fee basis Alternative arrangements are too difficult to negotiate or stick to Law firms are unwilling to participate in alternative arrangements Absent better metrics and data, it is difficult to detemine alternative values Alternative fee arrangements are too risky Other

2010 24% N/A 18% N/A 58% N/A

2009

2010 17% 5% 37% 7% 8% 20% 2% 4%

In what practice areas have you used alternative 2010 fee arrangements? (check all that apply) Litigation Transactional Compliance IP None Other DEMOGRAPHICS Your job title GC/CLO/VP of Legal Deputy GC/Assistant GC/Associate GC Other 47% 46% 20% 24% 19% 10%

91% 4% 5%

The number of lawyers working in your company's legal department worldwide

0-5 6-50 51-200 More than 200

69% 26% 5% 1%

Law department budget 0-500,000 501,000-1,000,000 1,000,000-25,000,000 More than 25,000,000

29% 19% 45% 7%

Annual gross revenue of your company $0-$50,000,000 $50,000,001-$500,000,000 $500,000,001-$1,000,000,000 More than $1,000,000,000

24% 30% 15% 31%

Number of law firms with which your company will spend at least $50,000 during 2010 0 1-10 11-25 26-50 51-100 More than 100

7% 68% 18% 5% 2% 1%

Sign up to vote on this title
UsefulNot useful