Biglaw

Biglaw Leader Still Beating The Market... But Not By As Much As Last Year

Are things slowing down here?

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We’re used to watching Kirkland & Ellis throw around its weight as the reigning revenue champion and hand out bonuses that lap the Cravath-defined market by 30 to 40 percent. It’s been a core feature of a firm that’s sped past the competition over the last several years to its current perch atop the global Biglaw game.

But have the lights come on for the K&E party?

The short answer is “no,” as the firm’s individualized bonuses still walloped the market standard. But digging a little past the surface, Kirkland’s bounty isn’t quite as generous as it was before and that could signal a high that’s petering off:

Kirkland had a bonus meeting today. Numbers overall looked to be about the same as last year. Most associates getting 1.25-1.33x of market. They didn’t have the 5% above market “floor” for everyone that they had last year. So some people will be getting 1.0x market.

Beating the market by 25 to 33 percent is still good. It just isn’t the same as beating the market by 40 percent. Far more worrisome is probably the end of the “+5 percent floor” that sheltered quality applicants taking the risk to join K&E and accept its individualized bonus system. They knew that no matter what vagaries befell them in 2018, they’d be able to come out ahead of the game. Maybe they have and maybe they haven’t, but whether this is a momentary blip or a sign that an aggressive expansion strategy from K&E is coming to an end remains to be seen. It’s clear that this is the firm we’re watching most closely come this time in 2019.

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HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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