Business of Law
UK partners at this BigLaw firm were paid more than their profits, report says
Posted Oct 11, 2013 8:43 AM CST
By Debra Cassens Weiss
K&L Gates paid its partners in the United Kingdom more money than they earned in profits last year, necessitating a cash infusion from the United States, according to a published report.
According to Legal Week, the shortfall was about 1.75 million pounds, which translates to about $2.79 million at today’s rates. The figures were published because the firm is a limited liability partnership.
The story also says K&L Gates sought to sublet more than 10 percent of its office space last year at its prime London location “to reduce its exposure to the high rental costs.”
K&L Gates published 2012 financial figures online earlier this year that showed the firm has no bank debt and “negligible retirement expenses as a percentage of revenues.” According to the report (PDF), “Indicia of financial stability remained high in 2012.”
A law firm spokesperson declined to comment on the Legal Week report.