Akin Gump to restructure its partnership to all capital system Dusit
The firm wll make the transition in January 2014 and said it had taken the decision after extensive internal discussions. Under the new structure, income partners will move to a multi-tiered system which includes a combination of guaranteed and variable compensation.The news, which was published in the Wall Street Journal’s blog ‘Above the Law’, will impact 75 partners who are paid on a straight income basis.
In a statement, Akin Gump chairperson Kim Koopersmith said that the firm ‘saw value in a streamlined compensation system and consistent evaluation criteria across the firm, which this new structure wil provide.’ She added that the shift would ‘also help further strengthen the firm’s financial position in both the short term and the long term.’
Ms Koopersmith said that there was a ‘very strong desire’ for income partners to be ‘directly invested in the success of the firm and for greater harmonisation of our firmwide evaluation criteria.’ The statement went on to say that under the new structure, income partners will, at a minimum, maintain their level of compensation for 2014. And it added that income partners would also contribute capital on a graduated basis which would be due in April 2014.