King & Spalding Defers Some Partner Distributions, Reopens In London for Partners Only
The firm is also taking a "cautious" approach to global hiring as part of its measures to tackle the COVID-19 crisis' affect on its business.
June 19, 2020 at 05:02 AM
3 minute read
King & Spalding has partially reopened its London office.
King & Spalding has deferred part of its global partner distributions, which were due to be paid around May, by two months.
It is the latest firm to grapple with the impact of the COVID-19, enacting financial measures across its global offices and limiting the amount of its people allowed back into its London office.
A partner said the firm had decided to hold the distributions in order to pay for any major expenses throughout the second quarter of 2020, so that it could cover its major financial commitments and could "find financial security" for the next financial year.
Another person close to the matter said that the firm had deferred a portion of the 2019 distributions as a "precautionary measure".
The person added the firm has also adopted a "cautious" approach to hiring, and is only adding "strategic" hires.
The partner said the firm's recent hire of a 15-partner team from Boies Schiller Flexner in California was an example of a necessary hire.
He said: "For that hire, we just thought it was a once-in-a-lifetime opportunity so we just had to act on it."
The firm's London office on Old Broad Street reopened its doors on Monday, but only for a limited amount of partners.
According to a person with knowledge of the situation, seven partners maximum are allowed in the office every day, and must gain prior permission to return to the office.
The partner added that on Monday and Tuesday only around "four or five" partners were in the office.
He said: "I was thinking of coming in two days a week, but after seeing only the handful of us on Monday… I don't think I will. I mean, what's the point? I come in for the social interactions, but the City was just dead."
King & Spalding is one of a handful of firms to have partially reopened its London premises mid-June. On Monday, Dentons reopened its Fleet Place office with a maximum 25% capacity and a track and trace system in place, and Allen & Overy also reopened its doors to limited amounts of staff.
Meanwhile on Thursday, Linklaters announced it had reopened its Silk Street base but that it expects the majority of its people to still work from home.
Clarification: This article has been updated to make clear it is a portion of partner distributions that have been deferred.
Read More:
Magic Circle Firms Prepare to Reappear in London Bases
Baker McKenzie Offers Reduced Working Week and Sabbaticals In London
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