Why King & Wood Mallesons is Deferring (Some!) Partner Profits

Question: Why is King & Wood Mallesons still deferring partner profits in the EUME after its partners agreed to pitch in $18.2 million to shore up capital?

Answer: It’s because that $18.2 million payment won’t be made until the end of the summer, and the firm needed to pay its U.K. taxes on behalf of partners in July, said Stuart Fuller, managing partner of the 2,000-lawyer firm.

“We looked at cash collections... the recapitalization process, the tax, and the cash flow of the firm... and we think the prudent thing to do is to defer the distribution,” said Fuller, in ...