Lateral exit policies are becoming more stringent across the legal industry, with law firms increasingly employing deterrence methods to retain partners. Kirkland & Ellis has recently implemented a policy to withhold partners’ accrued compensation at their discretion, aimed at making departures more difficult. Experts in the sector note that such practices, often encompassing punitive non-competes or debits for unpaid bills, are not uncommon and are used across a broad spectrum of firms, particularly those offering substantial pay packages. The trend suggests a growing reliance on financial levers to dissuade partner exits.
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