Kirkland Bonuses? Forum

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

IDK. Maybe some of it is an actuarial analysis that among the 100k signing bonuses, only 50% of those actually stick around long enough to collect. Maybe they've decided attrition is inevitable so who cares as long as they can keep a steady roster of warm bodies to "conduct diligence", and a few key grinders who cling to hopes of shares to do all of the rest of the work.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

IDK. Maybe some of it is an actuarial analysis that among the 100k signing bonuses, only 50% of those actually stick around long enough to collect. Maybe they've decided attrition is inevitable so who cares as long as they can keep a steady roster of warm bodies to "conduct diligence", and a few key grinders who cling to hopes of shares to do all of the rest of the work.

I think the more likely explanation is that current associates and NSPs are paying for those generous signing bonuses out of their EOY bonuses.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

IDK. Maybe some of it is an actuarial analysis that among the 100k signing bonuses, only 50% of those actually stick around long enough to collect. Maybe they've decided attrition is inevitable so who cares as long as they can keep a steady roster of warm bodies to "conduct diligence", and a few key grinders who cling to hopes of shares to do all of the rest of the work.

I think the more likely explanation is that current associates and NSPs are paying for those generous signing bonuses out of their EOY bonuses.

Agreed. Actually earning $70 less for every hour worked than someone with 2000. This is so *ed up given their repeat promises of it being hefty

[baseball12]

Senior associate in a “major” corporate group, ~2,900 hours, top rating. 1.3 multiplier. Gigantic slap in the face. Myself and some colleagues are at a loss for words.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

Think either 1) if you're truly one of the favored, you're getting a super high (think 2.5x-esque) multiplier and everyone else doesn't really get treated or 2) the signing bonuses have weighed heavily on income.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

Think either 1) if you're truly one of the favored, you're getting a super high (think 2.5x-esque) multiplier and everyone else doesn't really get treated or 2) the signing bonuses have weighed heavily on income.

Neither of these are accurate, speaking as someone who both knows bonus figures for the folks in #1 and has seen the high level income statement amounts referenced in #2. They are just managing to revenue and profitability goals, it’s not rocket science.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

Think either 1) if you're truly one of the favored, you're getting a super high (think 2.5x-esque) multiplier and everyone else doesn't really get treated or 2) the signing bonuses have weighed heavily on income.

Neither of these are accurate, speaking as someone who both knows bonus figures for the folks in #1 and has seen the high level income statement amounts referenced in #2. They are just managing to revenue and profitability goals, it’s not rocket science.

bonuses don't weigh on revenue.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

Think either 1) if you're truly one of the favored, you're getting a super high (think 2.5x-esque) multiplier and everyone else doesn't really get treated or 2) the signing bonuses have weighed heavily on income.

Neither of these are accurate, speaking as someone who both knows bonus figures for the folks in #1 and has seen the high level income statement amounts referenced in #2. They are just managing to revenue and profitability goals, it’s not rocket science.

bonuses don't weigh on revenue.

End of year bonuses definitely weigh on future revenue generating potential via retention. In addition and more to my point, the discussion above was around lateral signing bonuses vs. year end bonuses. The volume of laterals (and lawyer headcount more generally) definitely impacts the firm’s current and future revenue generation capability. But if you’d like me to amend my post to remove the reference to revenue, feel free to read it out as the remainder still holds true.

[Anonymous User]

As so many people have said, the idea of Kirkland shattering as a feisty upstart competitor to the white shoe firms is long in the past. Kirkland is now a Goliath and every decision is made with a ruthless efficiency toward maximizing PPP. Associate bonuses are no different. The TLDR for this is probably “the firm does not give a shit about you; the SPs are out for themselves.” So long as the money is worth the lifestyle then stick around. But don’t have any wrong ideas about what we’re doing here.

[Anonymous User]

Can anyone shed some light on what the fuck is going on here? As someone else pointed out up thread we're throwing out 100k and 200k signing bonuses to people but then we're fucking over everyone who's been working hard all year on the bonus multiplier? Does the partnership just not care anymore, sort of a dare to "go somewhere else then?" I don't get this. I feel like 2020 was a more generous bonus year than 2021 as far as the multiplier even though we made more revenue and more PPP in 2021 and had much worse attrition.

Think either 1) if you're truly one of the favored, you're getting a super high (think 2.5x-esque) multiplier and everyone else doesn't really get treated or 2) the signing bonuses have weighed heavily on income.

Neither of these are accurate, speaking as someone who both knows bonus figures for the folks in #1 and has seen the high level income statement amounts referenced in #2. They are just managing to revenue and profitability goals, it’s not rocket science.

bonuses don't weigh on revenue.

End of year bonuses definitely weigh on future revenue generating potential via retention. In addition and more to my point, the discussion above was around lateral signing bonuses vs. year end bonuses. The volume of laterals (and lawyer headcount more generally) definitely impacts the firm’s current and future revenue generation capability. But if you’d like me to amend my post to remove the reference to revenue, feel free to read it out as the remainder still holds true.

But isn’t this teed up for a death spiral where people leave because they’re pissed about bonuses, people who stay either refuse to take on more work knowing they no longer are being compensated for it sufficiently for the impact those incremental hours have on their life, and to fill the gap you either need to go to SLC type markets to expand or overpay of talent that takes a while to integrate into your system? If anything this actually sets up a better recruiting pipeline for Kirkland’s competitors in major market cities who will now be calling every associate and NSP, but I think one of the only things that motivated people last year to keep working was because after a crazy Q4 of 2020 they thought they’d get a big multiplier if they kept it up.

[Anonymous User]

But isn’t this teed up for a death spiral where people leave because they’re pissed about bonuses, people who stay either refuse to take on more work knowing they no longer are being compensated for it sufficiently for the impact those incremental hours have on their life, and to fill the gap you either need to go to SLC type markets to expand or overpay of talent that takes a while to integrate into your system?

Precisely. Also the lateral market can now see that KE bonuses for 2000+ billers are no longer better (and in some cases are in fact worse) than Latham, Sidley, Dechert, MoFo, Katten, etc. Therefore there will probably be even less appeal to moving to KE in the first place.

[Anonymous User]

For what it is worth, we have a very small sample size from which to draw any conclusions re Kirkland’s bonuses. I’m a 2nd/3rd year and got 1.5x scale with a 3 rating (and good reviews generally) and 2,500 hours.

[Anonymous User]

For what it is worth, we have a very small sample size from which to draw any conclusions re Kirkland’s bonuses. I’m a 2nd/3rd year and got 1.5x scale with a 3 rating (and good reviews generally) and 2,500 hours.

Delete

[Anonymous User]

For what it is worth, we have a very small sample size from which to draw any conclusions re Kirkland’s bonuses. I’m a 2nd/3rd year and got 1.5x scale with a 3 rating (and good reviews generally) and 2,500 hours.

We have enough data points. I know senior associates who are future share partners who got way lower multipliers this year with very high hours.

I think there is enough data in this thread to suggest that juniors are getting acceptable multipliers while midlevels and (especially seniors) are not.

[Anonymous User]

For what it is worth, we have a very small sample size from which to draw any conclusions re Kirkland’s bonuses. I’m a 2nd/3rd year and got 1.5x scale with a 3 rating (and good reviews generally) and 2,500 hours.

We have enough data points. I know senior associates who are future share partners who got way lower multipliers this year with very high hours.

I think there is enough data in this thread to suggest that juniors are getting acceptable multipliers while midlevels and (especially seniors) are not.

3rd year, 2,250 hours, 1.1x multiplier. I know of several folks my class year with similar hours and multiplier. As a 2nd year I had a 1.3x-1.4x multiplier with slightly fewer hours, which comes out to receiving $10K over-market last year versus $5k over market this year.

[Anonymous User]

But isn’t this teed up for a death spiral where people leave because they’re pissed about bonuses, people who stay either refuse to take on more work knowing they no longer are being compensated for it sufficiently for the impact those incremental hours have on their life, and to fill the gap you either need to go to SLC type markets to expand or overpay of talent that takes a while to integrate into your system?

Precisely. Also the lateral market can now see that KE bonuses for 2000+ billers are no longer better (and in some cases are in fact worse) than Latham, Sidley, Dechert, MoFo, Katten, etc. Therefore there will probably be even less appeal to moving to KE in the first place.

This has been a concern I have voiced for a while at Kirkland. Associates are its sole commodity. If it can't hang on to good associates and has to keep reaching out to crazy markets (not just SLC, but literally fucking australia) just to keep seats filled, then it is only a matter of time before things implode.

I already think it is happening to some degree. There are a lot of rotten apples in the laterals KE has taken on over the last year. Right now Kirkland is just relying on the fact that 95% of deals will close without incident. But at some point, that 5% of deals that do have incidents, and that 0.1% that have major incidents, will start to catchup to Kirkland, where things that should have been done or caught weren't because either a 2nd year was running a deal, or a 5th year lateral from the most preftigious firm in Biloxi Mississippi was running a deal with no supervision. At some point clients will stop trusting kirkland.

[Anonymous User]

I think the firm just decided that paying bonuses of X to every single associate doesn’t serve retention well enough to justify the cost of paying Y instead, because the cost savings of the X-Y delta are more than the expenses of replacing the associates who leave with a Y bonus but would have stayed with an X.

The firm has an above market reputation that it can coast on (and to its credit compared to other firms does pay above market over 2000) but it is not longer top of market outside of Wachtell and boutiques. It’s basically equal with a dozen or so firms now. But it will keep lying to us that it’s top of market

[Anonymous User]

The firm has an above market reputation that it can coast on (and to its credit compared to other firms does pay above market over 2000) but it is not longer top of market outside of Wachtell and boutiques.

I don't think this is right. Compared to KE, many peer BigLaw firms pay similar or better multiples-of-market to billers above 2000. There's a separate thread discussing this.

[Anonymous User]

1.13x 2018. 2450 hours in very busy corporate group. We’re obviously not above market given how many other firms pay multipliers. I don’t know if people will actually leave but the idea that comp is anything above average here isn’t true. The reason to stay would be for quality of work/firm prestige, otherwise doesn’t make much sense. Disappointed/surprised for sure.

[Anonymous User]

1.13x 2018. 2450 hours in very busy corporate group. We’re obviously not above market given how many other firms pay multipliers. I don’t know if people will actually leave but the idea that comp is anything above average here isn’t true. The reason to stay would be for quality of work/firm prestige, otherwise doesn’t make much sense. Disappointed/surprised for sure.

It’s especially frustrating given the rumors of certain corp associates securing lateral offers and then leveraging for $50K+ retention bonuses to stay. I also know people who have gotten $50K referral bonuses for 5 mins of effort emailing a resume to recruiting. I don’t understand the thinking here.

[Anonymous User]

1.13x 2018. 2450 hours in very busy corporate group. We’re obviously not above market given how many other firms pay multipliers. I don’t know if people will actually leave but the idea that comp is anything above average here isn’t true. The reason to stay would be for quality of work/firm prestige, otherwise doesn’t make much sense. Disappointed/surprised for sure.

Lol @ "quality of work & prestige". Kirkland is the least prestigious firm in the V10 (not that prestige matters). And the quality of work is churning out PPM/buy side diligence memos for your middle market private equity overlords. Leave Kirkland - if those are your two reasons, there is no reason to stay.

[Anonymous User]

so is the answer just that they blew the multiplier pot on the lateral signing bonuses? they need to keep ppp up but they’ve always done that, the multipliers are noticeably different this year so scratching my head over what changed

[Anonymous User]

So the multipliers were disappointing. I am a senior associate and was expecting 1.4/1.5 with a "2" and 2400 but got 1.2. It's still above market, I still work with really great lawyers, and I will still have many exit opportunities because of Kirkland's reputation and the skills I have developed at Kirkland.

If you really killed yourself last year and expected 2.0 but got 1.5, I feel you and would rather see you scale down/take some time off than leave the firm. With these bonus numbers, the SPs must know that a bunch of us are about to cash in on our unlimited PTO to recharge.

It’s especially frustrating given the rumors of certain corp associates securing lateral offers and then leveraging for $50K+ retention bonuses to stay.

An SP told me recently that the firm is not paying retention bonuses when people threaten to quit for the signing bonus.

Also the lateral market can now see that KE bonuses for 2000+ billers are no longer better (and in some cases are in fact worse) than Latham, Sidley, Dechert, MoFo, Katten, etc. Therefore there will probably be even less appeal to moving to KE in the first place.

As a litigator, I'd still rather work at Kirkland than any of these firms.

[Anonymous User]

so is the answer just that they blew the multiplier pot on the lateral signing bonuses? they need to keep ppp up but they’ve always done that, the multipliers are noticeably different this year so scratching my head over what changed

They’ve made the determination that associate retention/satisfaction is not key to their business model, they want to bring comp in line with flat market bonus, and are willing to replace people if they have to.