Akin Gump Overhauls Its Partnership Capital Structure
Which firm is revamping its capital structure, and what is it doing?
AKIN GUMP STRAUSS HAUER & FELD LLP — STATEMENT
Akin Gump Announces Shift to All-Capital Partnership Structure
July 16, 2013
Navigating Financial Success by Avoiding Common Pitfalls and Maximizing Firm Performance
(Washington, D.C. and New York) – Akin Gump Strauss Hauer & Feld LLP announced today a shift in the firm’s partnership structure to an all-capital partner system, effective January 2014.
The shift is the result of an extensive internal examination of the firm’s partnership structure that included multiple focus group interviews with income partners throughout the firm. The shift will provide all partners with an opportunity for investment in the success of the firm and will facilitate a transition towards standard firmwide partner evaluation and compensation criteria.
“Following multiple discussions with partners throughout the firm and a thorough evaluation of standard industry practices, we concluded that it is beneficial for all partners to have a stake in the firm’s success,” stated Akin Gump chairperson Kim Koopersmith. “Further, we saw value in a streamlined compensation system and consistent evaluation criteria across the firm, which this new structure will provide. This shift will also help further strengthen the firm’s financial position in both the short term and long term.”
Koopersmith continued, “What we heard during our focus group discussions with income partners was a very strong desire for all partners to be directly invested in the success of the firm and for greater harmonization of our firmwide evaluation criteria. The response we have received to this shift has been overwhelmingly positive, and we anticipate Akin Gump’s income partners will enthusiastically embrace this change.”
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Under the new structure, income partners will shift to a multi-tiered compensation system that is a combination of guaranteed and variable compensation, with gradually increasing degrees of ownership. The structure of the system has been designed to ensure that all partners will, at a minimum, maintain their level of compensation in 2014. Income partners will also contribute capital on a graduated basis, due in April 2014.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP, a leading international law firm, numbers more than 850 lawyers in the United States, Europe, Asia and the Middle East.
Akin Gump Revamps Partnership, Moves to ‘All-Capital’ System [WSJ Law Blog]
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