David Kessler, name partner and co-founder of securities class action firm Kessler Topaz Meltzer & Check, is set to retire at the end of the year after 28 years with the firm.
At age 58, Kessler has witnessed the firm’s evolution from a six-attorney boutique to a midsize firm of nearly 100 full-time attorneys, along with approximately 20 contract attorneys and 80 staff members.
Along the way, the firm’s client base has shifted to support institutional investors rather than individuals as the securities class action space matured, with Kessler making the decision to retire from his firm while it’s “in the best position it’s ever been in.”
“It’s a really tough practice. We have about 180 people we have to support every year without having a single hourly billable. We don’t get paid unless we win or resolve a case,” Kessler said. “These cases are being taken deeper and deeper by defendants, making it more and more risky of a proposition for plaintiffs’ firms to go through with the cases.
“But we’re seeing more value in the cases going deeper and deeper, and we have such a deep bench of lawyers to try these cases. … We have the best clients, the best cases, the best talent and support staff,” he said.
According to Kessler, who currently serves as co-chair of the firm’s securities litigation division, he recognized that it was time to step away from practicing once he achieved his three main goals established at the start of his legal career. Those were: supporting his family, developing expertise in his practice area and earning standing in the field, and ultimately creating a legacy—in this case a law firm—that can stand the test of time.
“Once I hit all three of those things, that was the time for me to step away,” Kessler said. “It was a goal of mine to be done at the age of 60. I never wanted to be the person sticking around or facing performance issues. It’s never interested me. So I made this plan, spoke with my partners, and its been in the works for some time. Now, we’re ready to go and ready to face these new challenges.”
There is no single successor taking up all of Kessler’s responsibilities. The firm doesn’t allow for territoriality over clients and takes a collaborative approach to case management, Kessler said, eliminating the need to transfer clients or cases. Further, Kessler added, he had transitioned away from litigation about five or six years ago, pivoting instead toward settlement work as he took on more responsibility helping to manage the firm overall.
He declined to name individual successors to firm leadership.
“I have run my department collectively with a bunch of different people over the last couple of years,” Kessler said. “And I work at the settlement juncture of cases … we have plenty of people who can do that, and they’re training someone else. … As for management, we’ve had a committee running the firm since 2008. Over the last year and a half, I had someone shadowing me on the management committee, and that person will step in.”
Kessler began implementing his succession plan over the past two years, beginning after his fellow name partner Mark Topaz stepped away from his practice. While watching Topaz, Kessler realized that, in his words, he didn’t want to “go from working 100 miles per hour to all of a sudden just stopping.”
“I was a bit concerned, but I’m no longer concerned about that,” he said. “For me, the whole remote work and COVID situation prepared me a bit more for working from home and being more involved in day-to-day family life. That transition has opened my eyes to work-life balance things. … I’m prepared to be active and be able to enjoy my retirement without being so completely worn down by my practice that I can’t enjoy this.”
For partners considering retirement or succession planning, Kessler encouraged them to start early and think primarily about replacement planning, rather than just retirement planning.
“I hate to say this, but you could be hit by a bus and have no plan in place, no idea who’s going to replace you. We have people to support in this business. We need to have an idea on what’s coming next, who is the next person to take up the reins if you can’t do [something],” Kessler said. “Our training motto has always been to teach somebody to replace yourself, and then you can move on to something bigger or different. If you’re always fighting on who gets to do what, you’re never going to grow the organization. Training to replace yourself is the way we’ve done it, and it worked extremely successfully over the years.”
“A lot of people fear change, but change is an opportunity,” Kessler concluded. “It’s about what you make of it, attacking it head on and trying to make the most of it because nothing ever stays static in a law practice and in the world in general.”