Akin Gump set for capital injection as firm moves to all-equity partnership
Akin Gump Strauss Hauer & Feld is shifting its firm-wide partnership to an all-equity structure from January 2014, following an extensive canvassing of partners' opinion. The New York-based firm - which counts 21 partners in its London office - is giving all income partners an opportunity to make a capital investment.
July 17, 2013 at 04:53 AM
2 minute read
Akin Gump Strauss Hauer & Feld is shifting its firmwide partnership to an all-equity structure from January next year, following an extensive consultation with the US firm's partners.
The New York-based firm has more than 300 salaried and equity partners in 19 offices around the world, of which around half are salaried. As of 1 January this year, the firm had 16 partners in London, of which 12 were full equity.
A spokesperson said the switch would help the firm move to a "standard firmwide partner evaluation and compensation criteria".
The new structure will see salaried partners make a capital investment and shift to a modified lockstep that will see partners gradually increase their ownership in the firm.
When the switch takes place at the start of the next calendar year, all partners will maintain their levels of compensation in 2014, with the first capital contribution from salaried partners due in April 2014.
"The capital will not go towards any particular projects; it's foremost about making the cultural changes to the firm, and ensuring our financial position is as strong as possible," firm chair Kim Koopersmith told Legal Week.
"This allows all partners to feel that they are invested in the success of the law firm," she added. "Both income partners and existing capital partners expressed a strong desire for the move to an all-equity partnership."
Last year, DLA Piper's non-US partnership made a similar move when it voted to abandon the existing three-tier structure in preference of a single rank of partner. Other firms to employ an all equity partnership include Skadden Arps Slate Meagher & Flom and Greenberg Traurig in the US, and Wragge & Co in the UK.
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