(Photo: Diego M. Radzinschi/ALM) New Kirkland Policy for Withholding Pay of Departing Partners Creates 'Pain Point' for Laterals
Withholding equity partner compensation comes with risks to a firm's culture, although the practice isn't new in Big Law, recruiters say.
July 17, 2024 at 06:16 PM
4 minute read
Law Firm Competition
What You Need to Know
- Kirkland recently adopted a policy of withholding departing equity partners' accrued compensation upon their departure from the firm.
- The accrual represents roughly 55% of equity partners' compensation.
- Kirkland isn't the first firm to implement such a policy, which comes with pros and cons, according to recruiters.
Kirkland & Ellis changed its policy this week on departing equity partners to give the firm the option to withhold the partners' accrued compensation, a person with knowledge of the situation confirmed to The American Lawyer.
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