Firm Snapshots

Kirkland & Ellis LLP

FIRM OVERVIEW

A word often associated with Kirkland & Ellis is “powerhouse.”  The Chicago-based firm is ranked at number six on the 2011 AmLaw 100, and is one of the top ten highest-grossing law firms in the world.  It employs approximately 1,300 attorneys in six U.S. cities and three international locations, and has profits per partner of $3 million.  The firm is known as a litigation behemoth that takes cases to trial and wins them, drawing on its “deep bench” of trial lawyers (“not just litigators”).  Other core practice areas include corporate transactions, intellectual property, restructuring, tax, private equity, and litigation.  Lateral Link Members praise the "top-tier work" and say the firm is an "excellent place to learn," where associates are "in charge of [their] destiny."  In 2011, the firm's gross revenue rose 8%, while its profits per partner dipped slightly by 1%.

Chambers Top Departments: Bankruptcy/Restructuring (#1); Energy: Electricity (Transactional) (#2); Intellectual Property (#1); Investment Funds: Private Equity: Fund Formation (#2); Outsourcing (#2); Private Equity: Buyouts (#1); Products Liability Mass Torts (#2); Tax: Corporate Finance (#2)

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COMPENSATION (SALARY AND BONUS)

Starting salaries at Kirkland are $160,000 and are based on a lockstep system.  Bonuses at the firm are individualized and based on billable hours and the usual “subjective factors,” including quality of work, pro bono, business development, and overall contribution.  The firm is typically a market leader in terms of bonus amounts, and associates who bill more than 2,200 hours are compensated with bonuses often double the market amount.  Associates who bill fewer than average hours usually still receive bonuses, but at below-market levels.  Members were generally happy with their bonuses for 2010, but note that “if the market sets a dinky year-end bonus, K&E will not far exceed it even though they could based on partner profits.”  In 2010, 92% of associates received bonuses that surpassed the Cravath bonus scale, and over half of associates received bonuses at least twice as much as the Cravath scale. The firm also matched Cravath's top-of-the-market 2011 spring bonuses, except that the firm is not paying any spring bonus to the Class of 2010 associates and Class of 2009 law clerks who joined the firm in 2010.  In December 2011, many associates received bonus amounts that were at least double the 2011 Cravath year-end bonus scale. 

 
 

ASSOCIATE EXPERIENCE

Kirkland operates on a free-market system in which associates are responsible for soliciting their own work, with the expectation that they will eventually settle into relationships with particular partners.  There are no set departmental rotations, but junior associates are free to try out other groups.  While this entrepreneurial approach allows associates to "run [their] own show," it also means that associates need to be assertive to get good work, because there is no assigning coordinator.  While some Lateral Link Members view the free-market system as a "boon" to associates, others feel that it "leads to inequities" and "does not function as well in a slow economy."  Relationships with partners “go a long way” in the free-market system; Members complain that “partners pick ‘favorite’ associates early,” and they lament the “political staffing of assignments.”  Several Members wished that there were a more “centralized” system and an assigning partner to ensure the even distribution of work was more equitable.  With the exception of bankruptcy associates, if an associate's own practice group is slow, he or she is expected to take on work in another practice area.  

Kirkland prides itself on its formal training program, known as the Kirkland Institute for Trial Advocacy, or KITA.  KITA includes a multi-day boot camp for first-year associates during which new litigators conduct a mock lawsuit before a live jury.  Corporate associates take part in the Kirkland Institute of Corporate Practice, with in-depth sessions covering various areas of corporate law.  Overall, Lateral Link Members say the firm’s formal training programs are “stellar” and among the “biggest selling points for the firm.”  However, while all Members agree that the firm's litigation training is "great," some say its transactional training programs are "less well-developed."  However, one Member explains that while there may be “lots of training…working on deals is what provides for real growth, and the work assignment system means some associates get a lot of experience and some lose out when there is not enough work to go around.”  According to Lateral Link Members, the firm's formal mentorship program is lacking, and associates need to "reach out to develop mentoring relationships" on their own.   One Member notes that “mentorship is a bit thin, which is perhaps to be expected at a ‘free-market firm,’” but also points out that “mentors should be all the more available if you don’t have an assigning partner.”

Kirkland operates a number of programs to encourage diversity and attract the best and brightest diverse legal talent to the firm, including its Diversity Fellowship Program, in which second-year law students holding offers to join the summer associate program can apply for a $15,000 stipend by submitting a personal statement about the contributions they would make to Kirkland’s diversity mission as a whole.  Since the program’s inception in 2004, Kirkland has awarded 68 fellowship grants totaling over $1 million.  In addition, the firm was named by Yale Law Women as one of the “Top Ten Family Friendly Firms” in 2010 and 2011. 

The firm laid off between 15 and 25 non-equity partners in its Chicago office in 2008, and in September 2009, Kirkland laid off numerous associates, primarily first- and second-years, in its New York, California, and Chicago offices.  Most of the associates agree that things are getting busier at Kirkland and the firm is definitely in hiring mode in several offices.  Morale has improved since the economic meltdown, but Members say it is “not as bad as it was, but not great.”  Despite the mediocre morale level at the firm, many Lateral Link members do describe the firm overall in positive terms.  “K&E is a true meritocracy, and there are limitless opportunities for early experience,” says one Member.  Several others commend the “relaxed atmosphere,” a high degree of autonomy, and a refreshingly non-hierarchal structure.

 
 

FACE TIME AND VACATION POLICY

The firm has no face time requirement, and Lateral Link Members report that it is "not an issue" and that they are free to work remotely, as long as they are "responsive."  However, this can be contingent upon the practice group an associate is in with one M&A associate noting “success [at the firm depends] on building and developing working relationships with senior people.”  Weekend appearances in the office are generally unnecessary, and Members say that when duty calls on a holiday, associates can work from home.  The firm recently made the switch to an unlimited vacation policy, and attorneys may now take vacation days at their discretion, subject only to overall performance expectations.  Lateral Link Members say most attorneys take between two and three weeks of vacation, during which time they are expected to be responsive to emails and emergent needs.  It is rare, say Members, for planned vacations to be cancelled.  The firm also offers ten weeks of paid parental leave for the birth of a child as well as six weeks of fully paid leave within 12 months of adopting a child.

 
 

BILLABLE HOURS

Kirkland has no formal billable-hour requirement, but according to insiders, the hours vary across offices and practice groups.  However, Members do indicate that on average, there is an expectation that associates bill at least 2,100 hours.  Normally, those who bill below the informal hours expectation can expect to have their bonus amounts docked, but Lateral Link Members say other consequences may include "ranking behind your class and possible termination."  “They won’t fire you for one year of low billables (say, if you’re in screaming distance of 1,800/1,900),” says one Member, “but if you string together enough of those years, you’ll get pushed out.”  Members also point out that activities other than pro bono work can be credited to your billables, like business development and writing articles, but stress that this is determined on a case-by-case basis.

 
 

PRO BONO POLICY

Kirkland encourages associates to bill at least 20 pro bono hours annually, and attorneys are given full credit for pro bono hours worked as though they were billable, with pro bono hours being counted fully toward bonuses.  In determining an attorney's compensation and their progress toward partnership, the quality of legal work performed on a pro bono matter is given the same consideration as comparable billable work.  Associates are permitted to bring in their own pro bono matters, and they may also choose from a variety of pro bono opportunities the firm generates through its relationships with legal service providers.  A number of Kirkland offices hold annual Pro Bono Service Awards to recognize attorneys who devote 20 hours or more to pro bono.  For each of the honorees who record 200 or more hours that year, the firm makes a contribution in their honor to the pro bono organization of their choice.  In 2010, 63% of associates performed an average of 84 hours of pro bono work each.  Most Lateral Link Members feel that the firm is very committed to the pro bono efforts of its associates, though not always a priority of the firm.

PARTNERSHIP PROSPECTS

The firm has two partnership tracks, with an average of six years to non-equity and ten years to equity.  According to one Lateral Link Member, to make non-equity partner an associate must demonstrate his or her ability to work with equity partners and run deals/cases; making equity partner is basically a “black box.”  According to Lateral Link Members, non-equity partners are generally "up for equity twice before…[they are] shown the door."   While Lateral Link Members say that "non-share partnership prospects are generally very good," they note that "the benefit to achieving that position is really minimal," since it is really just a "glorified senior-associate position."  Members were less optimistic about the chances for equity partnership, which they described as “a long shot.”

 
 

BENEFITS (INCLUDING NEW ASSOCIATE BENEFITS)

Benefits at the firm include an annual travel budget for legal conferences, free breakfast, free Starbucks and Dunkin' Donuts coffee, car service to the office before 7:00 a.m., free dinner and taxi service after billing eight hours, occasional social gatherings, a subsidized gym membership, and emergency backup childcare.  New associates receive a $10,000 bar stipend and relocation benefits, including direct billing with preferred movers and car transport services. 

SUMMER ASSOCIATE PROGRAM

Kirkland & Ellis offers ten-week summer programs in its Chicago, New York, London, Los Angeles, Palo Alto, Washington, D.C. and San Francisco offices.  The firm allows summer associates to choose assignments of interest directly from attorneys or through an online database, and summer associates are expected to complete six to 10 assignments during the summer.  While appreciating the flexibility to manage one’s own workload, some survey respondents point out that "the assignment system makes it possible to get in over your head.”  Many respondents also participate in a wide range of pro bono projects during the summer.  Summer associates have the opportunity to participate in condensed versions of the firm's litigation and transactional training institutes, including a full-day mock trial and a two-day mock acquisition, which survey respondents say are "fantastic" and a "highlight" of the summer.  The firm also holds regular training sessions for summer associates upwards of three times a week and according to one summer associate, “training is taken very seriously.”  The firm provides summer associates with BlackBerrys, but there is no expectation that they actually check them after hours.  Survey respondents report that summer associates are expected to be in the office during normal business hours, and typically leave the office between 5:30 and 6:30 p.m., although they warn there is the occasional "long night."  Respondents also say that weekend work is uncommon.  The firm provides a $40 to $60 lunch budget, depending on the office, and summer associates can attend an unlimited number of attorney lunches.  Social events are plentiful at the firm, with highlights including attending baseball games, the U.S. Open, concerts and performances, dinners at partners’ homes, and playing whirleyball.  In 2009, the firm extended offers to approximately 85% of its 146 summer associates, and in 2010, the reduced its summer class size to 68 summer associates, but gave offers to all of them.  In 2011, the firm expanded its summer class to 140 summer associates.

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