In recent news, much has been made of six partners at Kirkland & Ellis reportedly making at least $25 million each, a figure that seems astronomical even within the lucrative world of corporate law. This headline-grabbing statistic has been used to suggest that these lawyers are among the elite, the “top lawyers” in the industry. But is that really the case? Or are these partners simply beneficiaries of being in the right place at the right time, riding the wave of an era of unprecedented corporate growth and lavish spending?

The Reality Behind the “Top Lawyer” Label

The notion of the “top lawyer” is a misleading one, especially in the context of corporate law. It implies a level of legal intellect or brilliance that is rare and extraordinary. However, the reality is far more mundane. The lawyers who make it to the top of firms like Kirkland & Ellis are not necessarily legal geniuses. Instead, they are a combination of fortunate and obsequious individuals who have navigated the corporate ladder with skill, often more political than legal.

Luck and Timing

The first ingredient in the success of these so-called top lawyers is luck. Many of them entered corporate law during a period of massive corporate growth and increased spending. Over the last two decades, corporations have expanded at an unprecedented rate, and with that growth came an increased demand for legal services. The growth of private equity firms, the rise of complex mergers and acquisitions (M&A), and the proliferation of financial products all created a legal environment where demand outstripped supply. Lawyers who were in the right place at the right time found themselves in a rapidly growing field, with clients who had deep pockets and were willing to pay exorbitant fees.

Obsequiousness Over Intellect

The second factor is the ability to keep clients and bosses happy—a skill that often requires more obsequiousness than legal brilliance. The corporate legal world is one where relationships are paramount. Maintaining these relationships often involves a significant amount of ass-kissing, playing the corporate game, and making sure not to rock the boat. It’s less about winning groundbreaking cases and more about ensuring that clients feel well taken care of and that the firm’s partners are pleased with your work. Those who excel in this environment can rise through the ranks, eventually reaching the coveted position of partner, where they can start to command the kind of salaries that make headlines.

A Comparison to Professional Sports

The comparison between top lawyers and NBA players is not entirely off-base but requires a more nuanced understanding. Just as only a tiny fraction of basketball players make it to the NBA, only a tiny fraction of lawyers make it to the top echelons of corporate law. However, the comparison breaks down when you consider what it takes to succeed in each field.

The NBA vs. Big Law

In the NBA, players are selected based on their extraordinary physical abilities, honed skills, and competitive performance. Making it to the NBA requires a combination of talent, hard work, and a bit of luck. But in corporate law, while talent and hard work are certainly factors, the importance of luck and the ability to navigate a complex social and political landscape cannot be overstated. The lawyers making $20 million or more at firms like Kirkland & Ellis are not necessarily the legal equivalent of LeBron James or Stephen Curry. Instead, they are more like the star players who also happened to be excellent at networking, politics, and maintaining relationships with those who control the purse strings.

The Role of Private Equity in Inflating Legal Salaries

One of the most significant factors driving up the salaries of these corporate lawyers is the influence of private equity. Over the past few decades, private equity firms like Apollo, Blackstone, and KKR have become major players in the financial world. Their expansion into areas like real estate, private lending, and distressed assets has created a massive demand for legal services, particularly in specialized areas like M&A and securities law.

Bidding Wars and Salary Inflation

As private equity firms have grown, so too has the competition among law firms to secure their business. This has led to bidding wars for top legal talent, driving salaries to previously unheard-of levels. Just as NBA teams will outbid each other to sign a star player, law firms are willing to stretch their budgets to keep top partners from jumping ship. This competition has pushed compensation packages into the stratosphere, with some partners now making eight-figure salaries that would have been unthinkable just a few years ago.

The Impact on the Legal Industry

While these high salaries are undoubtedly beneficial for the individual lawyers who receive them, they are not without consequences for the broader legal industry. The financial strain of maintaining such high compensation levels can impact a firm’s overall health. Smaller firms, or those not involved in lucrative sectors like private equity, may find it difficult to compete, leading to greater disparities within the industry. Additionally, there is a growing concern that the focus on securing high-paying clients and maximizing partner profits is leading to a loss of focus on other important aspects of legal practice, such as pro bono work and public interest law.

What Makes These Lawyers So Valuable?

Given the astronomical sums involved, one might wonder what exactly makes these corporate lawyers so valuable to their firms and clients. The answer lies in a combination of factors that go beyond mere legal expertise.

Expertise in Complex Transactions

One of the key attributes of these high-earning lawyers is their specialized knowledge in handling complex transactions. Whether it’s a multi-billion-dollar merger, a high-stakes private equity deal, or a significant regulatory challenge, these lawyers have the expertise to navigate intricate legal frameworks and ensure successful outcomes for their clients. This level of expertise is particularly crucial in deals that involve large sums of money, where the stakes are incredibly high, and a mistake could cost millions or even billions.

Strong Client Relationships

Another critical factor is the ability to build and maintain strong client relationships. Many of these top lawyers have worked with the same clients for years, if not decades. These relationships are built on trust, reliability, and the lawyer’s ability to deliver consistently positive results. In the world of corporate law, where reputation and reliability are everything, a lawyer who can maintain a strong client base is invaluable to their firm.

Reputation and Track Record

Reputation plays a significant role in the legal world. Lawyers who are known for their success in high-profile cases or transactions are often able to command higher fees. Their reputation not only attracts new clients but also acts as a deterrent to opponents, who may be less likely to engage in frivolous litigation when facing a lawyer with a strong track record.

Networking and Influence

In addition to their legal skills, these lawyers are often exceptional networkers. They have extensive connections within the industry, including relationships with other lawyers, judges, and key industry players. These networks can be crucial in securing favorable outcomes for clients, whether through negotiations, settlements, or court decisions. In many cases, it’s not just about what you know, but who you know, and these lawyers are masters at leveraging their connections to benefit their clients.

Strategic Thinking and Problem-Solving

Finally, the ability to think strategically and solve problems proactively is a highly valued skill in the legal world. Clients are willing to pay top dollar for lawyers who can anticipate potential issues and mitigate them before they become costly problems. This type of forward-thinking approach can save clients millions of dollars and is one of the reasons why some lawyers can command such high salaries.

The Dark Side of Sky-High Salaries

While the massive salaries at the top of the corporate legal world are certainly impressive, they also raise several concerns about the future of the industry.

Economic Disparities Within Firms

One of the most obvious issues is the disparity in earnings within law firms. While equity partners at top firms may be making millions, non-equity partners and associates often earn significantly less. This disparity can lead to tensions within firms, as lower-earning lawyers may feel undervalued or overworked compared to their higher-paid counterparts.

The Pressure to Perform

Another issue is the pressure that comes with such high salaries. Lawyers who are earning millions of dollars are expected to bring in corresponding amounts of business for their firms. This can lead to a relentless focus on billable hours and client acquisition, often at the expense of work-life balance and mental health. The legal profession is already known for its high levels of stress, and the pressure to maintain a multi-million-dollar salary only exacerbates this problem.

The Impact on Legal Services

Finally, there is the question of how these high salaries impact the broader availability of legal services. As firms focus more on securing lucrative corporate clients, there is a risk that other areas of law, particularly those that are less profitable, may be neglected. This could lead to a decrease in the availability of legal services for individuals and small businesses, further widening the gap between those who can afford top legal representation and those who cannot.

The Illusion of the “Top Lawyer”

The six partners at Kirkland & Ellis who made $25 million last year are undoubtedly successful by any financial measure. However, to label them as “top lawyers” based solely on their earnings is to misunderstand what truly makes a lawyer exceptional. Their success is less about legal brilliance and more about being in the right place at the right time, combined with the ability to navigate the complex social and political landscape of corporate law.

As the legal industry continues to evolve, it’s essential to recognize that the highest earners are not necessarily the best lawyers. Instead, they are often the most well-connected, the most strategic, and the most adept at playing the game. While these skills are valuable, they do not necessarily make someone a top lawyer in the traditional sense of the term. The real challenge for the industry moving forward will be to find a balance between rewarding financial success and recognizing true legal excellence.