Kirkland litigators are reportedly hit hard in reallocation of partner shares
Kirkland & Ellis has reportedly changed the way it allocates equity partner profits in a move said to hit litigation partners hard while benefiting corporate and possibly bankruptcy partners.
Three unidentified sources told Law.com (sub. req.) about the change, and two of them described the reallocation as a “bloodbath.” One source told the publication that “the general sense is that this is the most recent manifestation of the corporate people taking over the firm.”
The law firm’s practice areas of private equity, mergers and acquisitions, and bankruptcy have been “extremely profitable,” helping increase Kirkland’s profits per partner to $3.6 million, the article reports.
Kirkland reallocates partnership shares every two years, the article explains. The value of partnership shares has been soaring, and that may be the reason the firm has cut the top allotment of partnership shares from 80 to 75, and the lowest allotment from 10 to 8.5.
The change is also likely to boost the pay gap between Kirkland’s highest and lowest earning equity partners, according to the article. The current compensation ratio is 8-to-1, and the change will create a ratio nearing 9-to-1.
Kirkland did not respond to a request for comment by Law.com.
