Kirkland shortens equity eligibility timeline Forum

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Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 2:44 pm

https://news.bloomberglaw.com/us-law-we ... y-reversal

"In a major reversal from a recent Big Law trend, Kirkland & Ellis said it will consider giving lawyers equity shares nine years after they leave law school rather than 10."

Not really sure why this is happening other than retention purposes? Try to get people to stick out those years 7-8 as NSPs thinking they have a real shot?

MillllerTime

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Re: Kirkland shortens equity eligibility timeline

Post by MillllerTime » Wed Dec 01, 2021 2:52 pm

Anonymous User wrote:
Wed Dec 01, 2021 2:44 pm
https://news.bloomberglaw.com/us-law-we ... y-reversal

"In a major reversal from a recent Big Law trend, Kirkland & Ellis said it will consider giving lawyers equity shares nine years after they leave law school rather than 10."

Not really sure why this is happening other than retention purposes? Try to get people to stick out those years 7-8 as NSPs thinking they have a real shot?
Curious to get other NSPs' take on this as well, but the bolded has to be the real driver. I'll be very curious to see how many actually make it in 9 years vs. being told at year 9 that you're not quite there yet, so will be up for shares again after 10 years.

I cannot imagine they will actually be loosening the criteria to get shares or giving them out any more liberally.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 3:00 pm

Yeah, I mean this just means ppl who were going to make equity in Y10 anyway will make it in Y9. Criteria hasn't really changed, but I guess it's nice if you're a superstar at Y9.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 3:17 pm

Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 3:27 pm

Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
Fixed salary is $1.5 mil

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Re: Kirkland shortens equity eligibility timeline

Post by Elvis_Dumervil » Wed Dec 01, 2021 3:47 pm

They key in thinking about this is to remember that whatever a law firm does, it's in the interests of the current partners.

MillllerTime

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Re: Kirkland shortens equity eligibility timeline

Post by MillllerTime » Wed Dec 01, 2021 5:29 pm

Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
My understanding was that the fixed salary was just a transition thing from the current system to the new one, and thus would only apply to current 9th years with a 2 rating (so next year's 9th years go straight to actual shares... or whatever purgatory old 10th years used to go to if they didn't make it).

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 6:13 pm

MillllerTime wrote:
Wed Dec 01, 2021 5:29 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
My understanding was that the fixed salary was just a transition thing from the current system to the new one, and thus would only apply to current 9th years with a 2 rating (so next year's 9th years go straight to actual shares... or whatever purgatory old 10th years used to go to if they didn't make it).
No, the fixed salary transition year is now a thing for every class going forward. You "make" shares after year 9, but the actual share grant is delayed a year and you get the $1.5 million during that wait period.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 6:30 pm

Anonymous User wrote:
Wed Dec 01, 2021 6:13 pm
MillllerTime wrote:
Wed Dec 01, 2021 5:29 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
My understanding was that the fixed salary was just a transition thing from the current system to the new one, and thus would only apply to current 9th years with a 2 rating (so next year's 9th years go straight to actual shares... or whatever purgatory old 10th years used to go to if they didn't make it).
No, the fixed salary transition year is now a thing for every class going forward. You "make" shares after year 9, but the actual share grant is delayed a year and you get the $1.5 million during that wait period.
Also, just to be clear I don't think a "2" means you automatically get shares going forward, although that message could have been clearer. I interpreted Ballis' message to mean that getting a 2 was essentially a prerequisite to being considered for shares but you still had to be approved by the relevant committee. This may seem like a minor point but I think it'll become important over time--I could see plenty of people getting "2"s as NSPs who are still not getting shares e.g., because they're in a slower or smaller group; the "2" recognizes a great performing NSP and will affect the bonus multiplier but you aren't necessarily getting shares off that. Others see it the same way?

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Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 6:32 pm

Anonymous User wrote:
Wed Dec 01, 2021 3:27 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
Fixed salary is $1.5 mil
Without getting too specific, any source for this? Someone on the firm committee? I had assumed the interim year salary would have been lower, like closer to 800k-1000k or about 50% of min. shares.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 7:01 pm

Anonymous User wrote:
Wed Dec 01, 2021 6:30 pm
Anonymous User wrote:
Wed Dec 01, 2021 6:13 pm
MillllerTime wrote:
Wed Dec 01, 2021 5:29 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
My understanding was that the fixed salary was just a transition thing from the current system to the new one, and thus would only apply to current 9th years with a 2 rating (so next year's 9th years go straight to actual shares... or whatever purgatory old 10th years used to go to if they didn't make it).
No, the fixed salary transition year is now a thing for every class going forward. You "make" shares after year 9, but the actual share grant is delayed a year and you get the $1.5 million during that wait period.
Also, just to be clear I don't think a "2" means you automatically get shares going forward, although that message could have been clearer. I interpreted Ballis' message to mean that getting a 2 was essentially a prerequisite to being considered for shares but you still had to be approved by the relevant committee. This may seem like a minor point but I think it'll become important over time--I could see plenty of people getting "2"s as NSPs who are still not getting shares e.g., because they're in a slower or smaller group; the "2" recognizes a great performing NSP and will affect the bonus multiplier but you aren't necessarily getting shares off that. Others see it the same way?
Generally agree. Would hope they factor it in to reviews this year, but either way I think over time “2” will become the new “1”. As I understand it, “1” was never a guarantee, but it did put folks in the small group of NSPs that were actually up for shares, and not getting a “1” all but guaranteed waiting at least one more year (at best, being pushed out at worst)

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 7:57 pm

lmfao they just sent out a follow-up memo to the effect of "oh, by the way, seems there was some confusion, we promoted everyone we were going to promote to equity today along with this announcement. So, if you didn't get the message, fuck you, you're still an NSP for another year."

fuck this place

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 9:32 pm

Elvis_Dumervil wrote:
Wed Dec 01, 2021 3:47 pm
They key in thinking about this is to remember that whatever a law firm does, it's in the interests of the current partners.
This. More smoke and mirrors at K&E.

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Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 9:44 pm

This is just a retention move for rising "superstars" that they realize are at risk of being poached by other firms. They pay maybe 2x what they would have for that individual's last NSP year in a bid to retain them that they hope is more effective than simply telling that same individual "hey, next year if you stay on track, you'll get shares." I doubt there's a single person who gets shares under this new scheme who wasn't already on track to get shares under the old scheme. Typical KE bullshit.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Dec 01, 2021 11:04 pm

Anonymous User wrote:
Wed Dec 01, 2021 9:44 pm
This is just a retention move for rising "superstars" that they realize are at risk of being poached by other firms. They pay maybe 2x what they would have for that individual's last NSP year in a bid to retain them that they hope is more effective than simply telling that same individual "hey, next year if you stay on track, you'll get shares." I doubt there's a single person who gets shares under this new scheme who wasn't already on track to get shares under the old scheme. Typical KE bullshit.
It’s a total response to NSPs going to places (recent examples are PW, Orrick) and getting shares in year 8. It’s pretty reasonable tbh as 1.5 after year 9 is much better than the packages I’m hearing about at other firms and less origination pressure while also learning a new system that you run into lateraling to that type of offer. Bonuses this year will really be what dictates if this is aimed at just the good NSPs or if it goes all the way down to motivate younger folks but I have trouble seeing this as anything but a pretty shrewd move.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Thu Dec 02, 2021 2:09 am

Anonymous User wrote:
Wed Dec 01, 2021 9:44 pm
This is just a retention move for rising "superstars" that they realize are at risk of being poached by other firms. They pay maybe 2x what they would have for that individual's last NSP year in a bid to retain them that they hope is more effective than simply telling that same individual "hey, next year if you stay on track, you'll get shares." I doubt there's a single person who gets shares under this new scheme who wasn't already on track to get shares under the old scheme. Typical KE bullshit.
Yeah of course it's a retention move, but they're again giving out a ton of money to high performers. Not sure what you're complaining about. It moves the market in a good way for all of us.

Of course they're not going to give equity to people "not on track". What firm would do that? Equity is precious.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Thu Dec 02, 2021 2:10 am

Anonymous User wrote:
Wed Dec 01, 2021 6:32 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:27 pm
Anonymous User wrote:
Wed Dec 01, 2021 3:17 pm
Anon because current K&E NSP. We heard folks who get equity after year 9 will get a “fixed salary” for the first year, followed by the normal entry level shares the year after. Not sure what the fixed salary will be, but guessing less than the $1.5-$2 million new SPs are reportedly getting this year. Feels like they really just created a new intermediate class of partner between NSP and SP as a retention tool.
Fixed salary is $1.5 mil
Without getting too specific, any source for this? Someone on the firm committee? I had assumed the interim year salary would have been lower, like closer to 800k-1000k or about 50% of min. shares.
That's the number I've heard from a couple people who got it.

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Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Fri Dec 03, 2021 5:58 am

Did everyone just end up getting 2s? Seems like they've managed to confuse the system even more than before.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Tue Jan 25, 2022 3:29 pm

Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.

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Re: Kirkland shortens equity eligibility timeline

Post by Ultramar vistas » Tue Jan 25, 2022 11:19 pm

Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
Don’t know about more volume because it’s pretty lumpy year to year, but several NSPs got shares after 3 years this year.

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Tue Jan 25, 2022 11:26 pm

Ultramar vistas wrote:
Tue Jan 25, 2022 11:19 pm
Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
Don’t know about more volume because it’s pretty lumpy year to year, but several NSPs got shares after 3 years this year.
Are you referring to NSPs specifically out of the Texas offices?

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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Jan 26, 2022 12:28 am

Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
They promoted over 60 NSPs to SPs this year.

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Re: Kirkland shortens equity eligibility timeline

Post by Sackboy » Wed Jan 26, 2022 12:34 am

Anonymous User wrote:
Wed Jan 26, 2022 12:28 am
Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
They promoted over 60 NSPs to SPs this year.
This would be impressive if they had less than 4 billion NSPs.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Jan 26, 2022 12:46 am

Sackboy wrote:
Wed Jan 26, 2022 12:34 am
Anonymous User wrote:
Wed Jan 26, 2022 12:28 am
Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
They promoted over 60 NSPs to SPs this year.
This would be impressive if they had less than 4 billion NSPs.
Name another firm that made 60+ equity partners this year. Adjust for total attorney count if you must.

Now name another firm in a similar zip code for PPP that's made 25% as many equity partners.

Again, the 60+ SPs are internal promotions. That's pretty damn good, on top of all the lateral SPs brought in over the past year.
Last edited by Anonymous User on Wed Jan 26, 2022 12:53 am, edited 1 time in total.

Anonymous User
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Re: Kirkland shortens equity eligibility timeline

Post by Anonymous User » Wed Jan 26, 2022 12:49 am

Sackboy wrote:
Wed Jan 26, 2022 12:34 am
Anonymous User wrote:
Wed Jan 26, 2022 12:28 am
Anonymous User wrote:
Tue Jan 25, 2022 3:29 pm
Bumping to see if the shorter track actually resulted in more share partner promotions this year. Curious because considering an NSP offer.
They promoted over 60 NSPs to SPs this year.
This would be impressive if they had less than 4 billion NSPs.
It actually is a much larger number than I would have guessed because there were only 97 NSPs in this “class” who came up organically: https://www.kirkland.com/news/press-rel ... w-partners

Obviously many NSPs have come over as laterals since 2017 who would’ve been added to these ranks, and there are also some NSPs of October 2018 who would have just made partner under the new rules as well. But 60 SPs this year is still a lot.

Seriously? What are you waiting for?

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