Kirkland & Ellis Adjusts Departure Policy, Allowing Withholding of Equity Partner Compensation

Kirkland & Ellis recently modified its policy regarding departing equity partners, now allowing the firm the option to withhold their accrued compensation. According to a report by The American Lawyer, while equity partners were already accustomed to having 55% of their annual compensation deferred until the following year, the new policy permits the firm to retain accrued compensation at its discretion. Legal recruiters note that while withholding pay from departing partners is not a novel practice in Big Law, it carries potential risks to a firm’s culture.