John is joined by Jon Ballis, the Chairman of Kirkland & Ellis, LLP, one of the world’s leading law firms with approximately 3,500 attorneys around the world. Jon describes his path to leadership at the firm, from joining Kirkland in 2005 from another firm as an M&A lawyer without aspirations for management, to his election to the Management Committee and his elevation to Chairman in January 2020. Jon explains Kirkland’s governance, emphasizing the firm’s flat organizational structure and the absence of many formal titles which he believes encourages organic leadership development. He also explains Kirkland’s unique Nominating Committee system, which seeks to avoid entrenchment and favoritism by allowing members to serve on the Nominating Committee only once in their careers. They also discuss Kirkland’s strategic focus, particularly its approach to talent management and strategy. Jon says that the firm’s strategy is client-driven, evolving organically based on where its clients are heading, rather than adhering to a rigid, top-down plan and how this client-focused approach has led to Kirkland expanding its private equity practice to include areas like energy, infrastructure, and private equity credit. Jon then explains Kirkland’s approach to compensation and lateral hiring, dismissing the idea that Kirkland "buys business" through offering high compensation for laterals based on their “book of business.” He says that the firm focuses on hiring talent to meet growing client demand. He says that Kirkland’s litigation business grossed almost $2 billion last year and operates at close to the same margins as its transactional business. Jon then discusses the merit-based compensation system at Kirkland, which is subjective and not formulaic. Every two years, the firm conducts a review and assigns each partner a set number of points that determine that partner’s compensation for the next two years. Jon explains Kirkland has two classes of nonequity or income partners, one class that are on track to either become equity partners or move on and a second class of permanent income partners. Finally, John and Jon discuss the challenges of maintaining leadership in the legal industry, including the importance of continuous improvement, innovation, and a willingness to take risks to maintain excellence.
Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi
