Brad Karp, chairman of Paul, Weiss, Rifkind, Wharton & Garrison, said firms are willing to pay top-dollar for high-performing partners in strategically important practice areas.
Law firms are bracing for economic uncertainty after record-breaking revenues last year and hiring sprees that saw even some lower-level lawyers netting six-figure signing bonuses.
Market volatility, inflation and rising interest rates have put a damper on corporate merger and acquisition activity, which in turn has cut into a key stream of revenue that has fueled recent boom times in the legal industry.
The slowdown is putting pressure on law-firm hiring and prompting firm leaders to look for growth opportunities in other practice areas, including in bankruptcy, restructuring, litigation and government regulation work.