Marking your own homework: Dentons and a defence of PEP

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Alex Novarese takes a jaded view of the latest attempt to avoid transparency

It would almost be too easy to pick holes in the letter that Dentons has supplied to the media to justify its attempt to withhold its profits on the basis of Olympian high principle. But I won’t let that stop me.

The letter, authored by Dentons’ chief executive Elliott Portnoy and chair Joe Andrew, sets out a number of arguments as to why Dentons won’t disclose basic information on the profitability and the margins on which it operates. Without exception, they lack substance, though to varying degrees. Indeed, it’s notable that Dentons largely fails to make any of the credible arguments for not supplying figures on profit per equity partner (PEP).

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Life during law: Charles Martin

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In the end Macfarlanes’ response to the recession was very strong. We learned not to be frightened of change and our powers embraced this in a way which was very invigorating… I wish we’d responded a little sooner. But we got there and I’m proud of what we achieved.

The firm got its mojo back. That wasn’t a given. We were phenomenally successful – we were a deal machine and managed to adapt in a way that the mix of the practice today is quite different to six years ago.

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Eversheds real estate head and tax partner to form high-end boutique

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William Naunton and Clive Jones to depart after year-long notice period.

The head of Eversheds’ international real estate group, William Naunton, is to leave the firm alongside tax partner Clive Jones to set up a high-end real estate boutique, after both have served a one-year notice period.

Jones and Naunton, who was a main board member until he stepped down in 2011, made their intentions clear when they handed in their notices in January, meaning they will be free to set up on their own in the New Year of 2015, with the unusually long notice period understood to reflect Naunton’s significant book of business.

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Camerons launches cost-saving venture through Dundas offices as the firm prepares for move to Cannon Place

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CMS Cameron McKenna plans to utilise the Scottish offices and personnel of new merger partner Dundas & Wilson as a form of northshoring as the top-ten firm unveiled its real estate ‘deal of the century’ with its move into its new Cannon Place offices next year.

The Dundas cost-saving initiative, spearheaded by Camerons energy partner Stephen Millar, who alongside managing partner Duncan Weston and senior partner Penelope Warne led the merger negotiations between the two firms, will see Camerons split the pricing of City-generated deals into work done in London and that which is hived off to Scottish lawyers under the supervision of a partner.

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Q&A with Hogan Lovells new chief executive Steve Immelt

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As Washington DC-based Steve Immelt next month takes over the reins from Hogan Lovells co-chief executives David Harris and Warren Gorrell, the disputes lawyer talks to Legal Business about the strategy going forward and partner ambition.

How did your appointment come about?

I wasn’t a part of the soundings process, but the board had talked to practically every partner in the firm to get their views – it was a comprehensive effort to get a sense of the partnership, which was invaluable.The board asked a number of people if they would consider the position. I was asked and decided I would. Continue reading “Q&A with Hogan Lovells new chief executive Steve Immelt”

BP brings in reverse auction as it pushes ahead with panel review

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Energy giant seeks increased transparency in bidding process with new online element

BP has introduced a reverse auction into its latest panel tender process, an announcement which came in the same week the energy giant lost an appeal to restrict access to its $20bn compensation fund for the Deepwater Horizon disaster. The FTSE 100 company confirmed on 22 May that it has issued invites to existing and potential panel member firms, and revamped the process with the introduction of an online reverse auction element to make the bidding process more transparent, quicker and efficient.

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Financial results 2013/14: BLP’s PEP up 35% and revenue 6%

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In one of the most anticipated sets of financial results of the 2013/14 financial reporting season, Berwin Leighton Paisner (BLP) last month unveiled its latest figures, with the top-20 firm’s revenue and profits per equity partner (PEP) up by 6% and 35% respectively, to £246m and £542,000.

As one of the earliest top City firms to unveil its financial results, these numbers, and the timing of their release are in marked contrast with last year, when the firm became the last to disclose that its PEP was down by 39% and its revenues were flat.

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Slaughters, A&O and Linklaters announce associate pay increases

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Trainees, NQs and PQEs to receive salary boost.

Setting the bar for trainee, newly-qualified (NQ) and associate pay last month were early Magic Circle movers Slaughter and May, Allen & Overy (A&O) and Linklaters, as Ashurst, Hogan Lovells and Shearman & Sterling were among other firms to announce changes.

Linklaters’ decision to increase pay pushes it ahead of the Magic Circle pack, with first-year trainees’ pay up by £500 to £40,000, and NQ salaries by £1,000 to £65,000. One-year post-qualified experience (PQE) associates also took home an extra £1,000 to £70,500, while two and three-years PQE saw more substantial increases, up by £3,750 and £4,500 to £82,000 and £93,500 respectively. These increases are significantly higher than last year, when pay rose by £2,250 and £1,000 respectively for two and three-year PQE associates.

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Weil’s City banking head Stephen Lucas joins Kirkland

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One of the best-known names in the leverage buyout market, Stephen Lucas, is set to join Kirkland & Ellis from Weil, Gotshal & Manges, where he heads the Wall Street firm’s City banking practice.

Lucas handed in his resignation last month and leaves Weil Gotshal just three years after he joined in June 2011 from Linklaters, where he was a banking partner. Prior to that, he was a partner at Magic Circle rival Clifford Chance.

He will be replaced as banking head at Weil by former Hogan Lovells partner Mark Donald.

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In need of sponsors – can a bank-dominated A&O get the hang of this private equity thing?

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Jaishree Kalia assesses A&O’s latest attempt to break into the buyout game.

There was never any obvious reason for Allen & Overy (A&O) to largely ignore private equity. While a circular debate simmered in the City about the problems of combining deal finance and corporate, its arch rival Clifford Chance (CC) had long made hay in both leverage finance and private equity. A finance-centric law firm should on paper be in tune with private equity houses, while the lack of a public M&A heritage to rival a Linklaters would suggest the buyout barons would have made good clients to build its corporate brand.

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