Kirkland & Ellis Reported to Be Building Moat Around Firm to Deter Poaching of Stars

 "Kirkland gives partners more than half their pay after the end of the year in which they earn it. For partners who depart to other firms, the new policy gives the firm discretion to withhold that pay, according to a person familiar with the change."  Bloomberg Law, July 18, 2024

Scrapper Kirkland & Ellis is no slouch when it comes to protecting its business - known as the most successful law firm in the world. Paul Weiss certainly got in the way by launching not one but two high-profile raids on its London office stars. Gone were brandnames ranging from Neel Sachdev to Roger Johnson. In addition, Latham poached Matthew Cohn.

If there is such a policy, as reported, then Kirkland & Ellis has created what could be an effective deterrent for both partners' leaving and potential poachers' approaching the star lawyers. And it all comes downs to money - big money: That is, both what partners would leave behind which they have already earned and how much other firms would be willing to pony up to compensate for the financial loss.   

Already poachers are compensating, sometimes along with guarantees, $20 million or more annually. And that seems usually without having to negotiate making those lateraled partners "whole" if they leave Kirkland & Ellis if such a policy is implemented. On the other hand, if the partners lateral from Kirkland & Ellis under those circumstances they could feel more bonded with the new firm. That could be a plus for the poacher. 

In the 2022 expose on big law "Servants of the Damned," journalist David Enrich documented the importance of big money to the partners in large law firms. Once a public-service oriented profession Enrich profiles it as a platform to acquire and grow personal wealth. Admittedly, though, those high-profile partners have to really sing for their supper. In addition, like associates, if their performance declines, they could be forced out. Unlike more noble-minded times, there is no longer much job security. 

30,000 feet up the issue is: If other law firms also create Kirkland & Ellis kinds of moats protecting against poachers will the talent war abate?

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