Latham makes another significant move in elite talent competition with Wachtell

In the latest development of Big Law’s elite talent war, Latham has once again made a significant move by bringing two partners from Wachtell in New York. This hiring streak marks a rare occurrence of partner departures from the highly esteemed M&A firm on Wall Street, shedding light on Wachtell’s lockstep model in the midst of a shifting talent market where law firms are fiercely competing for exceptional legal minds.

The recruitment of finance expert Emily Johnson and corporate attorney Mark Stagliano to Latham’s New York offices follows a pattern set by the firm after its high-profile acquisition of two senior Wachtell partners last year. Johnson, who became a partner in 2019, will enhance Latham’s banking, private credit, and capital markets practices, while Stagliano, who ascended to partner status in 2020, will bolster the M&A and private equity team. Their departure from Wachtell, where lateral exits are rare, signifies a significant shift in the legal landscape.

The addition of these accomplished lawyers reinforces Latham’s already robust corporate and finance platform. While the LA-based firm is known for its bustling deal-making activities, it has often been viewed as slightly behind in prestige compared to native New York firms like Wachtell and Cravath. With a focus on expanding its footprint in the competitive New York market, Latham’s strategic hires aim to solidify its position among the legal elite.

Wachtell, recognized as the pinnacle of M&A firms in the US, operates out of a singular office in New York, boasting a tightly knit partnership and a traditional compensation structure based on seniority rather than origination of business – a model akin to that of Slaughter and May in London. While this model has historically fostered unity and loyalty, it can pose challenges for younger partners who generate substantial revenue but are not yet at the top of the seniority ladder. In contrast, firms like Latham offer performance-based systems that allow top performers to earn lucrative compensation, potentially creating allure for lateral moves.

The recent exodus of partners from Wachtell, including those to Latham as well as other law firms like Simpson Thacher and Ropes & Gray, highlights an atypical trend for the prestigious M&A firm. These departures could indicate a shift in the legal market dynamics, where firms are increasingly vying for top talent by offering attractive remuneration packages and advancement opportunities. As the competition for skilled legal professionals intensifies, firms like Latham are strategically positioning themselves to attract and retain the best and brightest minds in the industry.