In a significant shift within the legal landscape, two prominent partners from Wachtell Lipton, a powerhouse in corporate law based in New York, have made the move to Latham & Watkins, intensifying the competition for legal talent in a rapidly evolving market influenced by recent political changes. Mark Stagliano, noted for his expertise in mergers and acquisitions, and Emily Johnson, a specialist in debt financing, have officially joined Latham’s New York office, marking a notable trend in partner mobility among top law firms.
This move follows the departures of two other Wachtell partners, John Sobolewski and Zachary Podolsky, to Latham within the past year. Latham has confirmed the hires after reports suggested that an announcement was on the horizon. With historic roots in Los Angeles, Latham & Watkins has rapidly grown into a global legal entity and is actively seeking to bolster its ranks in areas such as traditional mergers and acquisitions, capital markets, and restructuring. This hiring spree is part of Latham’s strategic effort to close the gap with Kirkland & Ellis, the world’s leading law firm by revenue.
In a related development, David Nemecek, a long-time Kirkland veteran and a highly regarded name in U.S. debt financing, announced plans to join Simpson Thacher & Bartlett. Simpson Thacher has also recently recruited Allison Preiss, another M&A partner from Wachtell, underlining the mobility and demand for high-caliber legal professionals in the industry.
Marc Jaffe, the New York Managing Partner at Latham, expressed his enthusiasm regarding the new additions, stating that Stagliano and Johnson’s expertise and skills will enhance Latham’s already robust offerings, reinforcing the firm’s commitment to providing top-tier legal counsel to its clients.
Wachtell, known for its selective partnerships and high compensation packages, has traditionally experienced minimal partner turnover. However, recent market dynamics, combined with the allure of guaranteed annual compensations exceeding $20 million for some top recruits, have cultivated a more competitive environment. Notably, Wachtell operates on a “lockstep” pay system, where partner compensation is determined by tenure rather than performance, although their remuneration packages are comparably high compared to other leading New York firms.
Despite facing increased competition, Wachtell had a highly successful year recently, capitalizing on a surge in megadeals which saw the firm involved in over $600 billion in transactions, rivaling even larger contenders like Kirkland and Latham. Some of their high-profile advisories include Warner Bros Discovery in its contentious sale, Norfolk Southern in an $85 billion transaction with Union Pacific, and Electronic Arts in its $55 billion acquisition involving Saudi Arabia’s Public Investment Fund.
Stagliano’s notable contributions include advising T-Mobile on its substantial $150 billion merger with Sprint, as well as the $11 billion sale of medical device manufacturer Hill-Rom to Baxter International. Likewise, Johnson has played a pivotal role in structuring multibillion-dollar M&A financing packages for major corporations, including Hewlett Packard Enterprise and Diamondback Energy.
As the competitive landscape for legal talent continues to evolve, the movements between these high-profile firms will be closely watched, suggesting a significant shift in the marketplace for legal services. Wachtell has yet to respond to inquiries regarding these departures.
