BANK OF AMERICA CORP.
Mr. Edward O’Keefe
“One of the things I value most in law firms that provide service to us is the partnership we develop. Law firm compensation structures should incent their practitioners to provide superior
work product in the most efficient manner. I want external law firms
to consider our matters holistically, as a portfolio, and thoughtfully
reflect on the manner in which even seemingly unique, complex issues
impact the others.”
BANK OF AMERICA LAW DEPARTMENT
The law department has more than 1000 people, including over 500 attorneys. We are
located in roughly 60 offices in 17 countries; we have 40 offices in the United States.
OUTSIDE COUNSEL SPEND
Over $100 million
PERCENTAGE OUTSIDE COUNSEL SPEND CURRENTLY ON A VALUE BASIS
Well over 50 percent of our matters are handled using value-based fee structures. In some practice areas, the
percentage is as high as 80-90 percent. Overall, about 30 percent of outside counsel spend is structured using
value-based fee arrangements.
As a department, we analyze the risk and value of each matter. Our litigators, for instance, manage legal and
reputational risk. We study the manner in which services are delivered and engage the best minds to work as a
team in solving more complex matters, which comprise a significant amount of our spend. On the major issues,
we employ a ‘virtual law firm’ concept that includes our in-house attorneys coordinating a virtual team of the best
talent in each specialty area from multiple law firms to provide the best service to the company.
PERCEN TAGE ON A VALUE-BASIS TO: INCREASE, DECREASE OR S TAY THE SAME?