Kirkland & Ellis

Layoffs and Delayed Start Dates at Kirkland?

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kirkland ellis logo.JPGTroubling rumors are circulating about Chicago-based Kirkland & Ellis. Tipsters say that: (1) layoffs are happening in the firm’s New York office, and (2) the start date for incoming associates is being pushed back to the end of the year.

The firm laid off 15 to 25 non-equity partners in January. Now it appears to be moving on to associates. A source says the firm started conducting layoffs of mid-levels in its New York office on Wednesday, and that they are still going on, writing this morning:

The layoffs are continuing today (mostly in the litigation and private equity departments). I’m not sure about the veracity of this, but I also heard that K&E’s NYC litigation department lost one or two big clients because they refused to lower their fees.

The firm spokesperson has not responded to our inquiries. If you have more information, please contribute to the comments, or send us a tip.

We’re also hearing that start dates for incoming associates at the firm have not been announced yet, but one 3L bound for Kirkland has gotten news that the start date will be December 2009 at the earliest.

Was told in writing that I won’t be starting until the end of the year for sure, and they left open pushing it back even further…. Guess my loans will have to wait….

Update: A 3L bound for Kirkland’s D.C. office questions the report of delayed start dates:

I am a graduating 3L that will be starting in the fall at Kirkland’s D.C. office. When I accepted the offer, K&E told me I would hear back in the spring about start dates, bar expenses, etc. I am not sure what 3L can have a “letter in hand” about start dates, I have not received any start date information, nor has a fellow incoming K&E associate whom I just asked.

A round-up of the firms that have pushed back start dates, after the jump.

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Morning Docket 1.19.09

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* Civil rights leaders reflect on Martin Luther King. [ABC]

* The E.U. slammed Microsoft in an antitrust case. [The Washington Post]

* At least ten percent of the Guantanamo population has been deemed innocent, further calling the prison’s legitimacy in to question. [The New York Times]

* SCOTUS added 6 new cases to the docket Friday. Among their upcoming decisions, is whether states should be able to enforce their own non-discrimination lending laws against national banks. [The Washington Post]

* A San Francisco federal judge’s decision revives discussion about the legality of Bush’s wiretapping program. [San Francisco Chronicle]

* Kirkland & Ellis will advise billionaire Paul Allen’s Charter Communications Inc. on potential bankruptcy. [Bloomberg.com]

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Nationwide Layoff Watch: Kirkland & Ellis Fires Non-Equity Partners

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kirkland ellis logo.JPGKirkland & Ellis has asked a number of non-equity partners to leave, multiple sources report. The timing is unclear, but they may have up to six months to pack their things.

The number of laid-off non-equity partners — or “non-share partners,” in K&E parlance — is believed to hover somewhere between 15 and 25. Some are in litigation and some in corporate, but we understand that all of those let go are in Kirkland’s Chicago office.

A tipster points out:

All were told it’s because [of] performance, but most were considered fine lawyers and rated with or above their class each year.

Kirkland & Ellis spokespeople did not respond to requests for comment by the time of this posting.

It’s important to remember that Kirkland & Ellis has a fairly large class of non-equity or income partners. Kirkland uses the “non-share partner” classification liberally, and they tend to make more lawyers “partners,” at earlier stages in their careers. Some K&E “partners” would be senior associates at other firms.

Kirkland also paid out Cravath-level bonuses. When Kirkland announced their bonuses, many commenters opined that bonuses were better than layoffs and that K&E would not do layoffs.

But it looks like Kirkland has had to do some more belt-tightening as the economy continues to tumble. While laying off partners is unusual, it’s not unheard of; last fall, Jenner & Block axed 10 partners (both equity and non-equity).

Earlier: Associate Bonus Watch: Kirkland & Ellis Pays Cravath Scale

Prior ATL coverage of layoffs

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Morning Docket 1.2.09

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* London-based law firm Linklaters was the leading law firm in mergers and acquisitions this year, taking the number 1 title from Sullivan and Cromwell. [Bloomberg]

* Former UK attorney general Lord Goldsmith says the UK should take in prisoners from the Guantanamo Bay prison camp if it will help the U.S. close the prison. [BBC News] Australia is not likely to take any prisoners says prime minister Kevin Rudd. The U.S. has asked a 100 countries to help clear the prison. [BBC News]

* Guinea pigs may smell bad but should you go to jail for owning one? Probationers in California could end up in jail for failing to report owning harmless pets like hamsters or goldfish thanks to a ruling by the California Supreme Court. [San Francisco Chronicle]

* A chinese court convicted 11 people for running a counterfeiting ring that “manufactured and distributed pirated Microsoft software throughout the world.” [The New York Times]

* Associates were not the only people in the legal community that were displeased with compensation this year. Federal judges lost their request to Congress for a pay raise to account for inflation. Chief Justice John Roberts says the frightfully low pay for judges threatens the quality of the court. [The Los Angeles Times]

* Life at law firms is not looking good for 2009, sorry to say. Lay-offs and lower bonuses will likely continue in the New Year. On the bright side–less work could help you meet that New Year’s resolution to go to the gym. [The Chicago Tribune]

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Associate Bonus Watch: Kirkland & Ellis

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law firm associate bonus watch 2008 biglaw bonuses.jpgThe big bonus / salary meeting at Kirkland & Ellis is still ongoing. But tipsters are now reporting that K&E is essentially designing its bonus scheme around the Cravath scale (subject to the Kirkland system of adjusting bonuses for hours and performance — “above class,” “with class,” “below class,” etc.).

We’ve also heard some good news: K&E plans to raise salaries on schedule.

While the bonus news is not terribly surprising, it’s still depressing to associates who felt that K&E had a strong year:

What’s maybe most upsetting is I was told specifically that [the Kirkland bonus grid] was based off the Cravath scale. Not that the firm was hurting. Not that the firm was being conservative. Not that the firm has a pessimistic outlook on 2009. Just that someone else was getting away with being cheap, and they wanted to do the same.

That’s a constant theme from associates working at firms that have followed Cravath. This year bonus payments seem much more tied to Cravath’s announcement, instead of a reflection on the strength of the firm’s year.

But maybe firms are just trying to hunker down for a rough 2009.

Update (11:53 AM): Check out some more reader reactions after the jump.

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Kirkland & Ellis Associates: Show Up To Work Tomorrow To Talk About Your Bonus

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kirkland ellis logo.JPGKirkland & Ellis is perhaps the biggest bonus shoe left to drop. Will the firm follow Skadden as the firm’s prestige and profitability suggests? Or will Kirkland pull a Half-Skadden and settle down with the rest of the market?

We’ll know tomorrow. A firm-wide email just gave K&E New York associates a big reason to show up for work the day before Christmas Eve. John Desmarais is holding what we assume will be a very interesting meeting tomorrow:

Subject: Compensation NY Associates:

I’d like to have a brief meeting with you all tomorrow at 10 am on the 50th Floor (50G) to discuss salaries and bonuses for this year and next. At that time, also, I’ll say a few words about how the office and the firm are doing in the current economic climate.

jd

This could be good news: why would K&E have a full meeting only to do what Cravath and the rest of the market has already done?

Of course, this could be terrible news: why would they need to “discuss salaries” when raises should be perfunctory,at a financially secure institution?

More on Kirkland’s meeting after the jump.

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Musical Chairs: High Profile Kirkland Hire Draws Criticism

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Michael Garcia new Kirkland Partner.jpgWhen you have a chance to hire a high profile U.S. attorney from the Southern District, it’s a move you almost have to make. Kirkland & Ellis snapped up U.S. attorney Michael Garcia, who is best known for his role in hounding “Client #9″ out of town.

Garcia could make between $3 million and $4 million at Kirkland (sure, it’s the associates who are “greedy”), but it appears that not all of the partners were aware that there would be a new guy feeding at the trough. The Daily Beast reports:

Garcia’s sudden move to Kirkland & Ellis was engineered by executive committee member Jay Lefkowitz–a high-powered neoconservative who authored President Bush’s stem cell research policy and was once considered to serve as White House chief of staff. It caught many senior partners there by surprise. “Normally it would certainly be a plum to pick up a U.S. attorney, but frankly it’s disappointing when you first hear about it reading the morning New York Times,” one senior partner in the New York office told me.

On the one hand new partner hiring is not like elementary school. Not everybody gets to play. However, if hiring Garcia had been talked about more widely at Kirkland, perhaps more of his critics would have tried to stop it.

And Garcia does have a lot of critics. More after the jump.

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Kirkland & Ellis Sends Holiday Party Reminder:
K&E Associates Send Bonus Reminder

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kirkland ellis logo.JPGKirkland & Ellis sent out one over-the-top holiday party reminder, yesterday. They made the planned festivities sound so great that I briefly missed the feeling bourgeois accomplishment that comes from working in Biglaw in Manhattan. Take a look at some of the highlights:

The Holiday Party is this Thursday, and we are expecting about 530 people to attend!

The Plaza

For the first time the party will be held at The Plaza, on the corner of Fifth Avenue and Central Park South. The Plaza has just gone through an historic restoration and the event spaces are more beautiful than ever. Our party occupies three of the most famous

rooms: The Palm Court, The Terrace Room, and the Terrace Room Foyer.

Unlike previous years, the entire party space will be open from start to finish. Drinks and passed hors d’oeuvres will be served at 6:00 p.m., the buffets will open at 7:00 p.m., with the skit, raffle and Employee Recognition Award being presented around 7:30 p.m.

Even a law student knows that a lawyer’s life is not glamorous. But occasionally, when you get your ticket punched by Biglaw, you get to act like you’re respected and important. Every now and again the yuppie dream becomes a physical reality.

More party details and a reality check after the jump.

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K&E Associates Send Bonus Reminder”

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Kirkland & Ellis New Vacation Policy: Tastes Great, But Is It Less Filling?

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kirkland ellis logo.JPGThe associates who work at Kirkland & Ellis remain sublimely confident that their firm will pay elite bonuses as opposed to the discount payouts being offered elsewhere.

But in these uncertain economic times, any change in firm policy — even one that seems positive — has to be met with skepticism.

Yesterday, our inbox started buzzing as various Kirkland tipsters let us know that the firm has undertaken a massive change in associate vacation policy. At first blush, the revised policy seems … awesome:

Instead of providing attorneys with a fixed number of vacation days each year, our revised policy will permit attorneys to take time off with pay – for rest and relaxation, or to attend to personal matters – at their discretion, subject only to the Firm’s overall performance expectations. Those performance expectations include, most importantly, that our lawyers will provide the highest quality legal work and service to our clients, contribute to the Firm’s pro bono programs and participate in non-billable efforts on behalf of the Firm. The revised policy aligns our associate paid time-off protocol with our long-standing practice for partners. We also feel it is consonant with both our Firm’s entrepreneurial culture and our associates’ desire to manage their own careers and maintain a suitable work/life balance.

Some associates would undoubtedly prefer to have a fixed amount of vacation time to which they are “entitled.” But most people enjoy being treated like adults with the maturity to manage their responsibilities. People know how to manage their own time better than law firm managers (wow, I just made a federalist argument).

After the jump, Kirkland associates weigh in on the full memo.

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Morning Docket 12.01.08

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small paris.jpg* Paris isn’t the only Hilton getting in trouble for sex. The former manager of a restaurant in the Hilton Minneapolis is suing the Hilton for “undirected” sexual harrassment because he walked in on upper management having an orgy. [Courthouse News Service]

* GMAC LLC, the financing arm of General Motors, is not allowing holders of so-called SmartNotes to exchange thier notes for more secure bonds. The exchange, which the company is offering as a ploy to get some of the bail-out money, is “limited to institutional notes and does not include retail debt instruments.” This means that holders of SmartNotes may get nothing if the company goes bankrupt, which could lead to some serious law suits. [Bloomberg.com]

* Lawyers: 1, bankers: 0. Former bankruptcy lawyer James H.M. Sprayregen is returning to Kirkland & Ellis after a three-year stint in the restructuring group at Goldman Sachs. The decision represents a triumph for corporate lawyers in their long standing rivalry against financiers. [The New York Times]

* Protestors in Thailand have concentrated their efforts on the airports in anticipation of a court verdict Tuesday that will likely order the Somchai’s People Power Party to disband. [Reuters]

* A plea-deal has been offered to an 8-year-old boy in Arizona, who confessed to killing his father and another man. [ABC News]

* The Federal Trade Commission is stopping the merger of two software companies because of the potential loss of competition. Capitalism will prevail! [Courthouse News Service]

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