Kirkland Lures Wachtell’s Top Restructuring Lawyer With An $80M Incentive To Jump Ship

Why It Matters

The hire signals Kirkland’s aggressive strategy to dominate the distressed‑company market and highlights escalating compensation wars for top restructuring lawyers, reshaping the competitive landscape of BigLaw.

Key Takeaways

• Kirkland offers Joshua Feltman $80M guaranteed over three years.
• Feltman previously chaired Wachtell’s Restructuring and Finance group.
• Move follows Simpson Thacher’s hire of liability‑management star David Nemecek.
• Restructuring market sees nine senior partners switch firms since 2024.
• Kirkland’s average equity partner earnings top $11M, underscoring talent premium.

Pulse Analysis

Kirkland & Ellis has broken the BigLaw compensation ceiling by signing Joshua Feltman, the former chair of Wachtell’s Restructuring and Finance practice, to an $80 million guaranteed three‑year contract. The deal, announced in April 2026, is the latest flashpoint in a “super cycle” of senior‑partner moves that has reshaped the restructuring landscape since late 2024. At the same time, the U.S. economy is wrestling with high corporate debt maturities and volatile markets, creating a surge in Chapter 11 filings and liability‑management projects. Firms are therefore scrambling for lawyers who can command large, complex deals, and Kirkland’s offer signals how far a firm will go to secure that expertise.

Feltman’s move also serves as a direct response to Simpson Thacher’s recent acquisition of David Nemecek, the architect of modern liability‑management strategies. Nemecek’s departure left a revenue gap in Kirkland’s own restructuring platform, prompting the firm to double down on talent acquisition. By adding a lawyer who has overseen high‑profile restructurings such as Toys “R” Us, AMC Theatres, and Expedia, Kirkland not only replenishes its deal pipeline but also reinforces its position against rivals like Latham & Watkins and Ropes & Gray, which are also expanding their distressed‑company practices.

The $80 million package also highlights a broader shift in BigLaw economics. Kirkland, with $10.56 billion in annual revenue and an average equity‑partner earnings figure north of $11 million, can afford guarantees that dwarf traditional profit‑share models. As more firms compete for a shrinking pool of elite restructurers, compensation structures are likely to become increasingly front‑loaded and performance‑agnostic. Clients may ultimately benefit from heightened competition, but the escalation in partner salaries could compress firm margins and drive further consolidation among boutique specialists seeking scale.