Mega Biglaw Firm Plans To Get Even Bigger, Focuses On New York
Baker McKenzie is no slouch in the world of Biglaw — by gross revenue, the metric used to create the Am Law 200 ranking, the firm took in $3,286,791,000 in 2023, making it the number 4 firm. But firm leaders aren’t content to just sit at the top of that ranking. The international firm is plotting for more growth, focused primarily in New York and North America. They’re looking to lure lateral partners into the fold and boost thir profits per equity partner (PEP).
As Colin Murray, Baker McKenzie’s North American CEO, told Law.com, “If you’re going to go after the best talent, you have to pay market-level compensation. Our U.S. [PEP] would land us around No. 39. Our goal is to be playing in the top 25.” That goal would raise the PEP from $3.5 million to $8 million.
Alan Zoccolillo, chair of the North American transactional practices, was blunt that in order to get more profitable, they have to offer big paydays. In the partner lateral market, compensation “plays a huge factor,” he noted, and “part of our success has been growing the profitability of our practice in the U.S.” And he gave some hints about what that looks like at Baker McKenzie.
For top lateral talent, the firm offers two- to three-year guarantees in cash or shares to laterals, depending on the partner, according to Zoccolillo.
“Typically we offer multiyear cash guarantees in line with market compensation for laterals, but sometimes do combine that with shares. It really depends upon the specific situation,” Zoccolillo said. The firm has not adjusted compensation for other lawyers in order to pay top performers, he added.
One practice area the firm is looking to grow is mergers and acquisitions. As Zoccolillo said, “10 years ago, we were a smaller, more middle market player in M&A.” But, “With our focus on internal growth, bringing on high-quality people, and focusing on key clients and key industries, we’ve substantially changed our profile and are now routinely advising on some of the world’s largest and most complicated transactions.”
But the firm has stuff to offer laterals outside of *just* money. Baker McKenzie has an international reach with 86% of partner outside the U.S. And they see that as an advantage.
“You’re not going to bring in the very best talent just through compensation. There has to be a differentiating factor,” Murray said, adding those factors include the firm’s “strong and collegial culture” as well as its “global footprint.” Zoccolillo added the firm believes its “global footprint and practice depth is key.”
Recent lateral partner Arturo Carrillo said the firm’s global reach in Latin and South America was attractive when he made the move to Baker.
Some of the most recent international deals include NSE listings in Mexico, M&A transactions in Peru and bank financings in Colombia, according to Carrillo.
“The global transactions we work on often involve 50, 60,70, sometimes 100 jurisdictions. There really isn’t another firm that has the global reach and full-service transactional team and that does it as well as we do,” Zoccolillo said.
With a lateral partner market that is fire right now, Baker McKenzie isn’t alone in its quest for the best legal talent. But it’s clear they’re putting in the work to grow, grow, grow.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. 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 or Mastodon @[email protected].
