By: Caryn Tamber

I bet a lot of firms would love to have the kind of growth in profits per equity partner that Saul Ewing had last year. According to the Legal Intelligencer, the firm saw a jump of 14.5 percent in this key indicator of law firm financial health even as the economy tanked.

This seems in sync with what the firm itself and others in the legal community were saying about its prospects in the down economy: because of its lean size and comparatively low rates, it would continue to pull in business as larger, more bloated firms suffered.

But Saul’s growth in PPP came at a price. The firm cut a few associates and lateral hires and more than a few staffers, although its lawyer headcount remained stable because of new laterals. Retreats and sponsorships were culled. The firm deferred first-year associates who were supposed to start in fall 2009 indefinitely; so far, only three of the nine have been brought on. Saul also canceled its 2010 program entirely and instituted merit-based salaries for associates past their second year.

Is such an impressive gain in PPP worth these deep cuts?

HT: The AmLaw Daily.