Kirkland Tops $10B Revenue as BigLaw Partner Pay Gaps Widen
Kirkland & Ellis surpassed $10.6 billion revenue in 2025 amid rising BigLaw partner pay gaps and hiring.
Why it matters: These shifts in compensation and lateral hiring affect law firm economics and culture, crucial for legal leaders managing talent and retention strategies.
- Kirkland & Ellis reached $10.6 billion in annual revenue for 2025, the first BigLaw firm above $10 billion.
- Wachtell, Lipton, Rosen & Katz leads in profitability with $12.1 million profit per equity partner (PEP).
- Kirkland ranks second with $11.1 million PEP, showing a widening partner pay gap.
- Debevoise & Plimpton moved away from traditional lockstep pay by launching a partner bonus pool.
- In Q1 2026, lateral partner hiring rose 9.4% to 979 moves, the highest in six years.
Kirkland & Ellis became the first BigLaw firm to surpass $10 billion in annual revenue, reaching approximately $10.6 billion in 2025. This milestone reflects strong deal flow and high market demand contributing to legal sector growth.
Profit per equity partner (PEP) varies among top firms: Wachtell, Lipton, Rosen & Katz leads with $12.1 million, while Kirkland follows closely at $11.1 million. These figures illustrate a growing pay stratification among BigLaw leaders, as firms differentiate compensation based on performance and market position.
Historically, many firms used "lockstep pay"—a fixed compensation scale based on seniority. Debevoise & Plimpton recently disrupted this model by introducing a partner bonus pool, which rewards individual performance and aims to improve talent retention amid competitive pressures.
Data for the first quarter of 2026 shows the 200 largest US law firms hired 3,521 lateral attorneys overall. Lateral partner hiring increased 9.4% year-over-year to 979 moves, the highest level in six years. Tad Gruman, Managing Director at Macrae New York, notes, "Practice groups are becoming more creative and open to meeting candidates. It's very busy right now." This trend is intensifying competition for experienced partners and influencing compensation strategies across the industry.
The expanding partner pay gaps, evolving bonus structures, and record lateral partner hiring combine to reshape BigLaw economics and firm culture in 2026. Legal leaders and partners must navigate these changes to effectively manage compensation, talent retention, and competitive positioning.
By the numbers:
- $10.6B — Kirkland & Ellis' annual revenue in 2025
- $12.1M — Profit per equity partner at Wachtell, Lipton, Rosen & Katz
- 9.4% — Increase in lateral partner hiring in Q1 2026 compared to previous year
Yes, but: While partner pay gaps are widening, some firms like Debevoise & Plimpton are experimenting with bonus pools to reward performance, signaling evolving compensation approaches rather than uniform increases.
What's next: Watch for second quarter 2026 lateral hiring and revenue reports to assess whether trends in pay disparities and partner movement sustain their pace.