After Hyping Above-Market Windfall, Kirkland & Ellis Releases Their Bonuses

Sure, bonuses are above market but the firm needs to manage expectations.

Kirkland & Ellis is, by a healthy margin, the richest law firm going. Their revenue numbers are just ridic. But rather that offer lockstep bonuses that share the wealth in a transparent fashion with associates, they offer individualized bonuses. But, K&E also has a reputation for repeatedly beating market bonuses. Indeed, that above-market compensation is a key recruiting point for the firm and allows them to kick ass in the lateral market as well.

But 2020 is a year full of upheaval, and we all were wondering exactly what bonuses at the mega firm would look like.

In an associate town hall meeting, the firm began the hype machine touting the bonus numbers, and that almost everyone was going to crush it. But when actual individualized bonuses started to come in, not everyone was impressed. Sure, they were above market, but, again, that’s kinda Kirkland’s thing. We’ve gotten word from tipsters that some were left disappointed, and that, particularly when you factor in other firms’ fall special bonuses this year, (which K&E pointedly did not participate in) this year’s bonuses simply didn’t wow. From some insiders:

Mid-level in corporate, with class, 24-2500 hours, about 35% above market on the year-end component, but only 25% above market all in. Either way, I’ve had higher multiples in past years with materially lower hours. And given what was said on this morning’s zoom call that multiples were greater than ever, etc., the general consensus is that associates aren’t super thrilled. The firm took the opportunity to rave about killer bonuses but could only (misleadingly) do so by factoring in the one-time special COVID bonus and otherwise lowering what the year-end component would have been in any other year. All things considered, these aren’t market shattering bonuses by any stretch of the imagination (and certainly not worth the hype they were given this morning), and I think as a result, this will be the beginning of a mass exodus of associates, whether shortly after they’re paid out or after the firm’s financials come out showing another year of significant revenue and PPP growth.

we got our K&E bonuses and they’re terrible. I’m a junior and they kept telling us how big our bonuses would be and “substantially above market” and we would be so happy and me and everyone I know got barely above market. We’re all incredibly pissed since we’ve been billing insane hours.

But proving it’s all a matter of perspective, others are still happy with whatever above-market bonus they’re taking down:

Individualized, no memo, but they’re huge. Made up for not paying the special bonus in the fall. Mid-level in transactional group with high hours and I received 2x the DPW full year (fall + winter) scale

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here’s a tip on Kirkland bonuses – individual bonuses were announced yesterday with all associates in good standing (99% of associates) receiving above market bonuses + pandemic bonus. Extra high bonuses were awarded this year, and even more for high hours – Im in 2014-2016 class range and received 50% above market for the normal bonus, plus the regular pandemic bonus. The firm treated everyone well and were so supportive throughout the year with the pandemic (understanding of personal challenges, child care, etc.), this just ends the year on an even higher note! People are happy!

Kirkland crushes bonuses. Automatic special Covid match. No billable requirement and automatic above NY market firmwide. 5th year, >2400 hours, >$140k.

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headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).


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