Kirkland & Ellis is the largest law firm in the world by revenue and the seventh-largest by number of attorneys. That’s nearly 10 times what the firm paid its average non-share partner, according to the latest AmLaw figures. The existential risk for a Kirkland is that they go too far and forget all the B players they still really need.”, For now, Mr. Lat said, “Kirkland is surging, with their New York and London offices every bit as impressive as Chicago.” He added: “They’re a global powerhouse. Compare Kirkland & Ellis to its competitors by revenue, employee growth and other metrics at Craft. At Cravath, young lawyers are carefully selected and then rigorously trained and promoted in what has become known as the Cravath system. Kirkland said last week that a senior Cravath partner, Sandra Goldstein, a former leader of the firm’s litigation department, would be joining Kirkland with a Cravath associate, Stefan Atkinson. “There has been a gradual but steady erosion of both client and partner loyalty,’’ said Mr. Karp, who hired Scott Barshay, the former leader of Cravath’s corporate department, in 2016. White & Case took No. Equity partners Profit margin 1: Wachtell, Lipton, Rosen & Katz: $6,330,000: 85: 61% 2: Kirkland & Ellis: $5,195,000: 450: 56% 3: Paul, Weiss, Rifkind, Wharton & Garrison: $4,699,000: 153: 52% 4: Sullivan & Cromwell: $4,653,000: 164: 52% 5: Quinn Emanuel Urquhart & Sullivan: $4,556,000: 157: 57% 6: Davis Polk & Wardwell: $4,514,000: 160: 50% 7: Simpson Thacher & Bartlett: $4,417,000: 191: 52% 8 CV. “It’s very individualistic and competitive, with a very big spread between the highest- and lowest-paid partners. Am Law 100 firm Kirkland & Ellis saw an increase in revenue and flat profits per partner in the 2008 fiscal year. It puts a high premium on partner selection and development, and requires attention to ensure that partners uphold all aspects of the social compact, not just in terms of their contribution but also in how they reflect the values of the partnership. By nearly any metric, Kirkland & Ellis is the top firm in the American Midwest, whether gauged by prestige, size, or profitability. It has raided the venerable Simpson Thacher & Bartlett in New York for so many partners that one Kirkland partner, in a widely circulated email, referred to Simpson as “Kirkland’s AAA farm club.”, In contrast to the lockstep system, which is still used by a dwindling number of law firms, albeit some of the most prestigious, Kirkland’s approach is a star system known somewhat pejoratively as “eat what you kill.”. Partner Kirkland and Ellis Los Angeles, CA 213-680-8574 jransom@kirkland.com. The number of equity partners was almost static in the year, increasing by just 3 to take it to 337. Their dedication to a better future for the Palm Lane students and their parents speaks volumes. Boston Kirkland has been spending lavishly. All offices in the United States have the same pay scale. What’s impressive is they’ve grown the top line while increasing their profits and prestige. Chicago-based Kirkland Ellis, famous for its high partner compensation, saw profits per partner rise seven per cent in 2014, taking them up from $3.1m to $3.5m. “It incentivizes partners to invest in the training and development of our people and aligns partner and client interests by encouraging partners to collaborate and deliver the full expertise of the firm.’’. ), Kirkland has shaken up the profession and expanded its practice by poaching top partners not just from Cravath, but from other prominent, old-line firms, including Latham and Skadden Arps Meagher Slate & Flom. After Kirkland, McDermott Will & Emery grew the most, with revenue increasing 14 percent to $1.05 billion and profits per partner to $1.9 million. Brad S. Karp, the chairman of Paul Weiss Rifkind Wharton & Garrison, said ‘‘the nature of big law’’ had changed. As recently as 2014 , boasting RPL of $1 million or more and PPP of … Kirkland & Ellis's office building entrance in New York. That compensation is — and, for many years, has been — extremely generous: The American Lawyer’s annual survey of partnership income, which was released this week, showed Cravath partners earning, on average, $4 million last year. There’s usually a trade off.”. “Kirkland is the antithesis of Cravath when it comes to compensation,” said Bruce MacEwen, president of Adam Smith, Esq., a consultant to law firms, who writes widely about their economics. Kirkland & Ellis is pleased to announce that 141 attorneys were promoted to partner effective Oct. 1, 2019. While Kirkland was historically considered a firm focused on litigation, during the 2010s, it expanded private equity and restructuringpra… Last month, Latham reported its second consecutive year of double-digit growth as its revenue surged to $3.77bn in 2019 while profit per equity partner (PEP) hit $3.78m. The Kirkland model risks emphasizing the star at the expense of the team. A partner with a lot of business is generally the "big fish" in the pond. Kirkland & Ellis LLP is an American law firm. A record-breaking $5.2 million. Former partners at Kirkland described a range of emotions attached to departing the firm: Surprise. The firm has embraced the two-tiered partner system. US legal powerhouse Kirkland & Ellis has retained its title as the world’s wealthiest law firm after its revenue jumped 18 per cent to $3.76bn (£2.87bn) in 2018. Chicago-based Kirland & Ellis revealed its 2019 results with a 10 per cent increase in revenue and with its profit per equity partner (PEP) reaching $5.2 million. Mr. Fred Whittlesey. $3.6m (Y, 2015) Profits per Equity Partner. Some 28 have been made up between 2012 and 2015; compare that with 10 at the similarly-sized London outpost of Weil Gotshal in the same time period. Profits per equity partner: $1,967,895, up by 5 percent These are impressive figures. The firm said that 2015 through 2017 had been its three best years ever in terms of revenue thanks to booming mergers and acquisitions and litigation practices. (I’m a former Cravath associate who took a pay cut to pursue journalism.). Unlike Dewey, Kirkland’s equity partners know what every one of their peers makes. This is a list of American law firms by profits per equity partner (PPEP, sometimes reported as profits per partner or PPP) in 2020. No doubt the Chicago firm’s generous compensation helps: Wachtell has the highest PEP (profit per equity partner) in America at $6.3 million, but its closest competitor is Kirkland, which no doubt offered Lee an exciting compensation package. Bidding War Grows at Top-Tier Firms. Profit per equity partner (PEP) topped $5m for the first time, up 7% to $5,037,000 on the $4.7m for 2017. Kirkland’s profits-per-partner last year in Texas? “It was unheard-of for a Cravath partner to go to another law firm,” said David Lat, the founding editor of the legal website Above the Law. Kirkland & Ellis's main competitors include Sidley Austin, Saul Ewing Arnstein & Lehr, K&L Gates and Alston & Bird. Published February 2011. [1], List of US law firms by profits per partner, List of largest law firms by profits per partner, List of largest United States-based law firms by head count, List of largest United Kingdom-based law firms by revenue, List of largest Canada-based law firms by revenue, List of largest Europe-based law firms by revenue, List of largest Japan-based law firms by head count, List of largest China-based law firms by revenue, https://www.law.com/americanlawyer/2020/04/21/the-2020-am-law-100-report/, https://en.wikipedia.org/w/index.php?title=List_of_largest_United_States-based_law_firms_by_profits_per_partner&oldid=981814813, Short description is different from Wikidata, Creative Commons Attribution-ShareAlike License, This page was last edited on 4 October 2020, at 15:33. Kirkland’s 19.4 percent growth rate in revenue last year compared with the previous year was the largest of any firm on The American Lawyer’s list. It's that time at Kirkland & Ellis to mix things up and reallocate how their partner profits for equity partners are cut. At a time when many law firm partnerships are revolving doors, the move by several partners from one large firm to another would hardly merit headlines. Kirkland & Ellis is a thriving and energetic place to work, and a firm that is unique in Earning a real financial share at Kirkland & Ellis as an equity partner was worth last year, on average, more than $5 million. On first inspection, the prospects of making partner at Kirkland & Ellis look good. Ms. Saeed conceded that the lockstep-compensation system removes a powerful lever of management control. Ms. Saeed said the firm had no intention of modifying its compensation system. Profits per Equity Partner. A desire to change the Cravath system and the resulting internal friction was a factor in some of the recent departures. Cravath, too, seems to be thriving. Fred Whittlesey's CV Contact. Cravath has never aimed to be the biggest firm, in terms of revenue or number of lawyers. (Cadwalader, Wickersham & Taft was founded in 1792.). Kirkland & Ellis pays associates of every graduating class at the top of the market. Needless to say, it also relieves the pressure on partners to meet annual billing targets. The relationship today is more transactional and clients tend to be more loyal to particular partners. Partner/Member Associates Counsel Non-traditional Track/Staff Attorneys Summer Associates ... Kirkland & Ellis LLP (kirkland.com) Basic Information 333 South Hope Street Los Angeles, CA 90071 Organization Size: 2500 ... Average Hours per Attorney last year 66 The Big Money at Big Law firm Kirkland & Ellis continues to grow, as the Chicago-born legal monolith has surged to a global turnover of US$3.76 billion, with profits per equity (PEP) partner topping $5 million for the first time. Partner/Member Associates Counsel Non-traditional Track/Staff Attorneys Summer Associates ... Average Hours per Attorney last year 88 Percent of associates participating last year 82.8 ... Kirkland & Ellis LLP has over 1600 attorneys in 12 offices worldwide. Kirkland & Ellis's profits per equity partner in 2009 - the most recent year for which data are available - were $2,495,000, placing the firm in the 94th percentile. The starting salary is $160,000. Three partners at Kirkland & Ellis resigned Tuesday and joined another elite corporate law firm in Chicago, Latham & Watkins. 2011 Vault Ranking: 11 Overview. This year, Kirkland edged out Cravath on that count, too, with average profits per equity partner of $4.7 million, according to The American Lawyer. But it does put a premium on profitability. “Our compensation model is just one element of our approach to producing the quality that we want our brand to represent,” said Faiza J. Saeed, the firm’s presiding partner, when we spoke this week. Kirkland & Ellis LLP. “That’s a good question. Kirkland and Ellis should be commended for the number of attorneys they have assigned to the pro- bono legal team. Kirkland & Ellis profits per partner hit US$3.5m. The American Lawyer’s annual survey of the largest law firms measured by revenue shows that it took in $3.165 billion last year, displacing Latham & Watkins from the top spot — an achievement Kirkland partners will celebrate next week at their annual retreat in Southern California. But Kirkland has a reputation for excellence that rivals Cravath’s.”, There is no doubt that Kirkland, which has expanded rapidly from its Chicago headquarters, has been on a roll. A Kirkland spokeswoman declined to comment for this column. It paid its former partner Robert Khuzami $11.1 million for his work at the firm from late 2016 to early 2018, according to the financial disclosures Mr. Khuzami filed when he became deputy United States attorney in Manhattan. Join Over 800,000 Attorneys and Law Students! It is also the first law firm to have made $4 billion in annual revenue, a record it is now poised to beat. Yet not even Cravath partners make the kind of money that enticed Ms. Goldstein to join Kirkland: $11 million a year for five years, plus a signing bonus, according to two people who discussed the terms with her. The Chicago-bred giant today (21 March) revealed results for the 2018 financial year, confirmed a 19% hike in revenues against $3.165bn the previous year. Founded in 1819, Cravath will celebrate its 200th anniversary next year, only the second major American firm to reach such a milestone. Revenue rose 7% to $1.4 billion, and profit per partner was flat at $2.47 million. (The figures don’t account for Cravath’s gold-plated pension plan, which is among the most generous in the profession. Kirkland also ranks second-highest globally in profits per equity partner, and is the highest among firms with a global presence. This year, Kirkland edged out Cravath on that count, too, with average profits per equity partner of $4.7 million, according to The American Lawyer. Headquartered in Chicago, Illinois, the firm was originally founded by Northwestern alum, military officer, and Chicago Tribune publisher Robert McCormick. The figure is an estimate and not technically a guarantee, since Kirkland pays partners who have equity in the firm based on their shares, the value of which can fluctuate based on the firm’s performance. See The Top Two Different Ways Law Firm Partners Are Compensated for more information. Kirkland & Ellis is taking a leading role in New York's legal industry Revenue was $3.17 billion last year thanks largely to the firm's focus on its work in the area Gerald Schifman What has the legal profession’s upper ranks abuzz is that for decades partners almost never left Cravath voluntarily — not for other law firms, at least, let alone for a firm like Kirkland, which is in some ways Cravath’s polar opposite. “Our partners value both the monetary and non-monetary benefits of being here,’’ she said, “which includes the opportunity to work with incredibly talented people on challenging and high profile matters.”. Its revenue went up at a slower rate - up 6.6 per cent to $2.15b. The teachers’ union is well aware of the importance of the Palm Lane lawsuit. Lisa Madigan becomes a partner in Kirkland & Ellis' litigation practice, ... Kirkland reported $3.76 billion in revenue in 2018 and profits per partner of $5 million. Cravath currently represents Disney in its bid to acquire major assets from 21st Century Fox, and it represents Time Warner in the high- stakes antitrust case over its planned merger with AT&T. That departures from Cravath would create such a stir in the legal profession is, in many ways, a tribute to its brand and reputation. Paul D. Cravath, a patriarchal figure at the firm in the early 20th century, essentially invented the modern large law firm, where teams of lawyers apply themselves to client needs across a broad range of issues. “Is ‘eat-what-you-kill’ inherently unstable?” Mr. MacEwen said. Revenue per lawyer was up nearly 3% to $1.63m. It was heartening to watch them in action. “A generation ago, clients were reflexively loyal to their law firms. Robert Khuzami earned $11.1 million for his work at Kirkland & Ellis from late 2016 to early 2018, according to the financial disclosures he filed when he became deputy United States attorney in Manhattan. Chicago-founded Kirkland & Ellis, with $3.757 billion in 2018 revenues, is again the biggest U.S. law firm by gross revenue in new Am Law 100 2019 rankings released yesterday. In nine promotion rounds since 2007, London has seen 52 partners made up. Still, many question the long-term viability of Kirkland’s unabashed star system and lavish pay packages. The changes are exemplified by the world’s highest grossing law firm, Kirkland & Ellis, which has paid as much as $10 million to lure star lawyers away from other law … “Now it’s happening with some regularity.”. Kirkland has been far more successful at this than Dewey & LeBoeuf, which imploded in 2012 after poaching partners from other firms and offering outsize guarantees it could not meet. Mr. Barshay will earn $10 million in 2018 to lead Paul Weiss’s global mergers and acquisitions practice, according to people familiar with the arrangement. In general, an equity partner will bill out at a similar rate to a non-equity partner and take home about three times as much money. Unless the firms in question are the old-line Cravath, Swaine & Moore and the disruptive Kirkland & Ellis, and the money involved is so big that star partners are being valued like Hollywood celebrities and professional athletes. The rest of the top eight U.S. firms also stayed the same: Latham & Watkins; Baker McKenzie; DLA Piper; Skadden; Sidley Austin; Hogan Lovells; Morgan Lewis; and Jones Day. Not far behind Kirkland was Gibson Dunn, which reported $3.8 million in profits-per-partner. In one of Cravath’s most distinctive features, partner compensation is determined solely by seniority, a system known as lockstep. Ms. Goldstein’s move followed those of three other Cravath partners who defected to Kirkland since 2012. This new paradigm creates more opportunity, but also creates more flux.”, On the rare occasions that Cravath partners did leave, they certainly didn’t do it for money, given that they have traditionally been among the highest-paid in the profession. Founded in 1909 in Chicago, Illinois, Kirkland is the largest law firm in the world by revenue, the seventh-largest by number of attorneys, and is the first law firm in the world to reach US$4 billion in revenue. Although its traditional strength has been in private equity transactions — a field it dominates — it was also ranked first last year by the website Mergermarket in mergers and acquisitions, with 447 deals. It used to be that partners almost never left Cravath, Swaine & Moore voluntarily — not for other law firms, at least, let alone for an “eat what you kill” firm like Kirkland & Ellis. At the partnership level, the firm is strictly egalitarian. ... Profits per Equity Partner. $11 Million a Year for a Law Partner? One partner described the firm’s performance as “eye-watering”.