If you have ever wondered how the world’s most famous lawyers get so rich, you are looking at the right metric. Profits Per Equity Partner (often called PEP) is the gold standard for measuring a law firm’s financial health. In simple terms, it tells us how much money each “owner” of the law firm takes home at the end of the year. Think of a law firm like a big pizza. The “profits” are the whole pizza after all the bills (like rent and associate salaries) are paid. The “equity partners” are the people who own the shop. The profits…