Amid partner turnover, Kirkland reportedly requires longer notice before departure
After losing more than 100 partners in little more than a year, Kirkland & Ellis has reportedly doubled the notice period before equity partners may leave.
Equity partners must give 120 days’ notice, up from 60 days, two former Kirkland partners told the Am Law Daily (sub. req.). Nonequity partners, who previously weren’t required to give notice, are now reportedly required to give 30 days’ notice.
The Am Law Daily says the increased notice period appears intended to discourage partners from leaving, or at least to make it more difficult. The story adds that Kirkland has been “highly profitable,” with $2.15 billion in revenue and $3.51 million profits per equity partner in 2014. Its business model emphasizes lateral hiring.
Kirkland generally has high turnover in its partner ranks, spurred by nonequity partners who decide to leave when they don’t make equity partner. But the firm has also lost “a significant number” of equity partners, according to the story.
Seven partners in Kirkland’s London office are leaving, according to recent news reports. Six partners in Kirkland’s private equity group are moving to Sidley Austin and the seventh, a finance lawyer, is joining Freshfield Bruckhaus Derringer. Sources told the Am Law Daily there is some resentment in the London office because of high compensation paid to some lateral hires.
