Kirkland & Ellis, one of the world’s largest and most prestigious law firms, has recently implemented a new policy that suspends the payroll of departing partners for 60 days. This policy has been met with criticism from some lateral partners, who argue that it will make it more difficult for them to join the firm and that it will hurt the firm’s ability to attract and retain top talent.
Impact on Lateral Hiring
One of the biggest concerns about Kirkland’s new policy is that it will make it more difficult for the firm to hire lateral partners. Lateral partners are experienced lawyers who join a new firm from another firm.
In the past, lateral partners were often able to negotiate a golden parachute arrangement with their new firm, which would provide them with a substantial financial cushion if they were to leave the firm within a certain period of time. This type of arrangement is no longer possible under Kirkland’s new policy.
Impact on Firm Culture
Another concern about Kirkland’s new policy is that it will hurt the firm’s culture. Kirkland has a reputation for being a demanding and competitive firm, but it also has a reputation for being a collegial and supportive place to work.
The new policy, however, could create a sense of distrust and animosity between partners. Partners who are considering leaving the firm may be more hesitant to do so, for fear of losing their income for 60 days.
Conclusion
Kirkland’s new payroll suspension policy is a significant change that will have a major impact on the firm. It is too early to say what the full impact of the policy will be, but it is clear that it will make it more difficult for the firm to hire lateral partners and that it could hurt the firm’s culture.
Recommendations
- Kirkland should reconsider its new policy and explore other ways to address the concerns that led to its implementation.
- The firm should work to create a more transparent and fair process for lateral hiring.
- Kirkland should focus on building a positive and supportive work culture that encourages partners to stay with the firm.
Kind regards Dr. R. Hamilton.
