Credit: Nastudio/Adobe Stock Stricter Lateral Exit Policies Become More Common Across the Legal Industry
Law firms are increasingly using lateral departure deterrence methods, such as punitive non-competes or debits for unpaid bills, legal industry sources say.
July 19, 2024 at 05:00 AM
5 minute read
What You Need to Know
- Firms are already creative at using incentives to court and retain laterals. Increasing use of disincentives is the other side of the coin.
- The kinds of firms using implementing such measures aren't limited to the Am Law 25 or 50.
- 'Some firms will follow [Kirkland]. I think some firms will follow it in-part, though not entirely, by withholding a portion of compensation or portion of bonus a bit longer,' said one industry observer.
The world's highest-grossing law firm isn't the only one trying to make it tougher for partners to leave. But Kirkland & Ellis' decision to withhold partners' accrued compensation at the firm's discretion could expand the pool of law firms using pay levers to dissuade departures.
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