Legal Business

As the City elite gets coy on associate salaries, US rivals are winning the battle for young talent

As the City elite gets coy on associate salaries, US rivals are winning the battle for young talent

Madeleine Farman assesses the impact of another round of pay rises on the City market

As US firms continue to hike associate pay for UK lawyers, members of the City’s legal elite are getting increasingly coy over what they are offering their junior ranks… but are such tactics sustainable in the long run?

Legal Business

Akin Gump reveals trainee salary increases, as NQ pay remains static yet competitive

Akin Gump reveals trainee salary increases, as NQ pay remains static yet competitive

Akin Gump has increased trainee salaries by 12% and 8% for first and second years respectively, with the group representing the first trainees the US firm has taken on, while its newly qualified (NQ) pay remained static this financial year.

The trainees, who are set to qualify this autumn, are Akin’s only trainee intake and were formed when it took over Bingham McCutchen’s London office in 2015.

Despite only starting a trainee programme in 2015, Akin is raising incoming first-year trainee pay from £43,000 to £48,000, and second-year salaries from £48,000 to £52,000.

The US firm’s first-year pay packets are also competitive, equal to that of Cleary Gottlieb Steen & Hamilton, and only trumped by Debevoise & Plimpton at £50,000, according to Lex100.

NQ pay at the firm remains £112,500 at current exchange rates. The firm last increased NQ remuneration levels in September 2016 from £100,000.

This, however, remains one of the most competitive NQ rates on the market, with peers such as Jones Day last week announcing an increase of up to £100,000, while Skadden, Arps, Slate, Meagher & Flom pays NQs up to £118,000, according to Lex100.

The firm has up to four trainee places available for its next intake in 2019, receiving around 300 applications per year, and the salary increases will be effective from September 2017.

Akin’s director of international legal recruiting and development in London Victoria Widdows said trainees at Akin ‘quickly become an integral part of the London office and we want to ensure that salaries are reflective of this at the top end of the market, as is the case with our NQ salaries’.

Georgiana.tudor@legalease.co.uk

Legal Business

A $50m hike sees Akin close on $1bn mark but City revenues slide; Cads shrinks again

A $50m hike sees Akin close on $1bn mark but City revenues slide; Cads shrinks again

US restructuring and energy leader Akin Gump Strauss Hauer & Feld piled $50m on to its top line in 2016 to take revenues to just under $1bn, despite a slide in City income.

While revenue for the 2016 year hit $980m, up 5.3% on its 2015 tally of $930m, the law firm’s City arm saw its local income fall from $91.4m to $87.9m. The Texas-bred practice dramatically upgraded its City practice in late 2014 when it absorbed the bulk of Bingham McCutchen’s City arm, shipping in a 22-partner team to double the size of its London practice.

The firm-wide increase in revenue has been accompanied by a rise in profit per equity partner (PEP), up from $1.9m in 2015 to $2.1m this year, with revenue per lawyer remaining broadly static.

Akin Gump’s London co-head, Sebastian Rice, told Legal Business that a run of marquee restructuring jobs through 2015 accounted for the comparative 2016 dip in City income. At the end of 2015, Akin Gump’s restructuring team headed by James Roome (pictured), concluded a major case involving three former Icelandic banks: Kaupthing, Landsbanki and Glitnir. The team represented holders of $33bn in bonds following the collapse of the banks.

Rice described the restructuring work as ‘keeping about 20 lawyers extremely busy’, adding: ‘At the end of 2015 it really hit its peak. Things took a few months to ramp up. By summer 2016 things were back in full swing.’

Roome commented on the slow start to 2016, saying: ‘All the junior people were hugely relieved to get a break!’ Rice and Roome both attributed the firm-wide revenue growth to Akin Gump’s focus on core product lines like financial restructuring, international trade and tax. Noted Rice: ‘We don’t pretend to be all things to all people around the world, we just focus on the things we are highly regarded for.’

In terms of key City appointments in the past year, Akin Gump hired arbitration partner Hamish Lal from Jones Day, corporate partner Igor Krivoshekov from Dentons and trade partner Jasper Helder from Baker McKenzie. Addleshaw Goddard litigator Kambiz Larizadeh is set to arrive next month, becoming the firm’s 37th partner in London.

The results come as US law firms begin releasing annual financial results, indicating how the world’s largest legal market fared in the 2016 year. While Weil Gotshal & Manges has just confirmed a robust performance in 2016, its New York peer Cadwalader, Wickersham & Taft this week said that turnover dropped 2.5% to $452m in 2016, against $463.5m the previous year. PEP increased 2.7% to $2.1m, while overall headcount fell 2.2% to 438.

The shrinking revenue coincides with the closure by Cadwalader of its offices in Beijing and Hong Kong, which was announced in the autumn, with the firm also set to shut its Houston arm as it refocus its efforts on its core Wall Street financial client base.

tom.baker@legalease.co.uk

For an extended look at Akin Gump’s City ambitions see ‘The third wave’ (£) 

Legal Business

Revolving doors: Linklaters hires in Germany as Akin Gump takes Addleshaws litigator

Revolving doors: Linklaters hires in Germany as Akin Gump takes Addleshaws litigator

In a busy start to the year, Linklaters and Simmons & Simmons have added to the benches in Europe, while Akin Gump Strauss Hauer & Feld, Eversheds and DLA Piper have hired in the UK.

In Germany, Linklaters has taken on DLA Piper’s international group head of real estate Carsten Loll, as a partner in the Frankfurt and Munich offices. Loll will work closely alongside German practice group head Wolfram Kruger. His appointment brings Linklaters’ partner count in Germany to 64 partners.

Akin Gump hired disputes partner Kambiz Larizadeh from Addleshaw Goddard to strengthen its London offering. He focuses on high value, cross border commercial litigation and international arbitration matters, and has particular experience with regards to Russia and the Middle East. The exit follows the resignation of fraud specialist Mark Hastings who quit for Quinn Emanuel Urquhart & Sullivan in December 2016.

Simmons expanded its investigations practice this week in Amsterdam with the addition of litigation partner David Schreuders, who joins from DLA Piper. Schreuders is experienced in several jurisdictions both in advisory work, including corporate investigations, as well as compliance audits and litigation.

Withers has rehired private client partner Jeremy Arnold who returns to the firm from Waypoint Capital. Arnold, who was an associate at Withers from 1985 left the firm to go in-house in 2006, when he moved to Barclays to help establish its wealth advisory arm.

In Nottingham, Eversheds has added a corporate partner with the hire of Ian Moore, who was most recently managing director at Scottish sportswear brand Dhu. Moore was a corporate partner at Norton Rose Fulbright between 2007-2012.

Meanwhile in Leeds, DLA strengthened its intellectual property (IP) practice. The firm hired Clarion Solicitors’ founder and former head of the IP practice Leigh Martin. Before seven years at Clarion, Leigh had been a partner in DLA Piper’s IP group from 2000 to 2004. He does international work in patents, designs, trademarks, copyright, database rights and confidentiality.

georgiana.tudor@legalease.co.uk



Legal Business

US partner promotions: MoFo and Akin Gump make up one each in London

US partner promotions: MoFo and Akin Gump make up one each in London

Morrison & Foerster and Akin, Gump, Strauss Hauer & Feld have both promoted one woman each to their London offices in their 2017 rounds.

Commercial litigation lawyer Gemma Anderson became a partner in MoFo’s London office on January 1. Specialising in complex contractual and financial matters, technology disputes, and contentious insolvency and restructuring issues, Anderson is dual qualified in England & Wales and New Zealand. The single promotion in London is the same as last year when the firm promoted capital markets lawyer Scott Ashton in a global round of 12.

Alongside Anderson, the firm promoted one other in Europe as part of its 15 strong promotion round. Technology lawyer Christiane Stuetzle, the firm’s co-chair of global film and entertainment, has become a partner in the firm’s Berlin office. Two partners have been made up in MoFo’s offices in Washington DC, San Francisco, Hong Kong and Tokyo. New York, Palo Alto, San Diego, Northern Virginia and Denver will each receive one new partner.

Sophie Donnithorne-Tait has been promoted to partner in Akin Gump’s London office. She became partner on January 1 and is the only lawyer to be promoted across Akin Gump’s European offering. Last year the firm made up three partners in the City.

New York saw the majority of Akin Gump’s promotions with six taking up the role of partner. Washington DC will gain Annisah Iman Um’rani as a partner while Mahmoud Baki Fadlallah will be based both in the firm’s Dubai and Washington DC offices. Daniel Moffett has become a partner in Akin Gump’s San Antonio office.

Other firms recently making their global promotions round include Hogan Lovells, Jones Day and Cadwalader, Wickersham & Taft. As part of a round of 29, Hogan Lovells appointed three in the City while Jones Day made up five London partners as part of a 47-strong global round and Cadwalader made up 10, including two in the City.

madeleine.farman@legalease.co.uk

 

 

Legal Business

Revolving doors: Akin Gump strengthens trade practice in London, while Mayer Brown expands pensions

Revolving doors: Akin Gump strengthens trade practice in London, while Mayer Brown expands pensions

In a busier week for laterals, US firms Akin Gump Strauss Hauer & Feld and Mayer Brown strengthened their London benches, while several UK firms including Shepherd and Wedderburn, Clyde & Co and Ince & Co target growth in Scotland, China and Singapore, respectively.

Akin Gump announced Jasper Helder as the latest addition to its City office. Specialising in international trade and corporate compliance matters, he joins Akin Gump from Baker & McKenzie where he headed their EUMEA trade and commerce practice. He has particular experience in Russia and the Middle East advising on EU and UN sanctions compliance for Iran, Russia and Syria.

Also in London, Mayer Brown hired Jay Doraisamy from Dentons as a partner in the pensions practice. Before Dentons, she was the head of London pensions at Eversheds and her 22 years’ experience includes funding, benefit redesign projects, scheme closures and amendments, and defined benefit/contribution schemes across sectors such as energy, banking, transport, chemicals, manufacturing and water.

Meanwhile, UK firm Shepherd and Wedderburn grew in Scotland this week through acquiring north-east boutique firm The Commercial Law Practice (CLP) and with it partners Mike Anderson and Keir Willox who will join Shepherd and Wedderburn in Aberdeen, and Ma’aruf Razzak who will become a director. The firm re-entered the Aberdeen market earlier this year hiring John Rutherford, previously at Pinsent Masons and former managing partner of Mackinnons Charles Scott.

Also expanding internationally, Clyde & Co’s joint law venture (JLV) in China, Clyde & Co Westlink, appointed new corporate and M&A partner Yang Liu from HaoLiWen Partners. Alongside corporate transactions, Liu also has experience in shipping, international trade and logistics.

Clyde & Co Shanghai partner Michael Cripps, said: ‘Clyde & Co is one of the very few international law firms that have been approved by the Ministry of Justice to establish a formal joint law venture in China, and with the arrival of Yang I believe we can further leverage on his expertise to boost our corporate strength in the market.’

Also in Asia, UK law firm Ince & Co this week added Nicholas Lum to its benches, to lead the firm’s China practice in Singapore. He joins the team as a disputes partner in shipping and international trade from Oon & Bazul.

Recognised by The Legal 500, he focuses on international trade and commodities, shipping and shipbuilding and general commercial disputes. His appointment follows Ince’s recent expansion, with a total of 22 new partners globally in the last 18 months, including 12 new hires.

georgiana.tudor@legalease.co.uk

Legal Business

Akin Gump revamps associate pay to reflect volatile pound post Brexit vote

Akin Gump revamps associate pay to reflect volatile pound post Brexit vote

Akin Gump Strauss Hauer & Feld has reviewed its associate salaries and will pay junior lawyers according to exchange rates in light of a volatile pound. This means the firm’s London-based newly-qualified (NQ) lawyers will see salaries swell to $180,000, which at current exchange rates is nearly £150,000.

Associates and counsel at Akin Gump in the UK will receive the same salary as their US colleagues based on the variable exchange rates. The rate will be reviewed every quarter.

Akin Gump London senior partner James Roome said: ‘As a matter of policy, we aim to pay people the same in London as if they were in New York and in order to achieve that in today’s market conditions, we have decided to pay them by reference to prevailing exchange.’

In contrast, a NQ at Slaughter and May earns £71,500, while at Clifford Chance an NQ earns £85,000 before bonuses.

Roome (pictured) added: ‘A really important part of our strategy is to attract and retain the best people. We came later to the market than the English firms, they got here first, and maybe that’s part of the cost for us is to make sure we pay them well.’

Earlier this summer, Akin Gump followed Milbank, Tweed, Hadley & McCloy, Paul, Weiss, Rifkind, Wharton & Garrison, Weil Gotshal & Manges and Cahill, Gordon & Reindel in increasing pay for junior lawyers in the US, after Cravath, Swaine & Moore was the first to up associate and counsel pay packets from $160,000 to $180,000.

georgiana.tudor@legalease.co.uk

Legal Business

ABS rising: Burford Capital launches its own law firm with Akin Gump hire

ABS rising: Burford Capital launches its own law firm with Akin Gump hire

After receiving a licence in January, Burford Capital has launched its own Alternative Business Structure (ABS) Burford Law, with the hire of Akin, Gump, Strauss, Hauer & Feld‘s Tom Evans.

Described by The Legal 500 as ‘extremely smart’, commercial litigator Evans has a broad range of experience in international arbitration, litigation and mediation. He joins Burford Law as a counsel. He was of Counsel at Akin Gump.

A spokesperson for Burford Capital said Evans will help provide services to clients which have judgments in need of enforcement.

He added: ‘We’re confident that Tom’s capacity to work in conjunction with Burford enforcement specialists and international local counsel will make for a faster, more seamless and generally happier outcome for clients.’

Earlier this year Burford Capital appointed Fried, Frank, Harris, Shriver & Jacobson’s former head of competition and antitrust Craig Arnott as its new managing director after the sudden resignation of Nick Rowles-Davies.

The litigation funder has had an expansive 12 months, having invested €30m in US competition law boutique Hausfeld so it can open in Germany. Announced in October 2015, Burford’s investment was the largest-known facility established to fund litigation in Germany, where Hausfeld claimed there is significant demand, particularly in anti-trust litigation. The office opened in January this year.

Meanwhile in February this year Welsh firm Capital Law launched a £50m commercial litigation funding service, marking the first time a UK law firm established its own disputes funding pot. The fund is secured and will be managed by Capital Law directly, rather than by an external litigation financier obligated to other equity and asset management partners.

madeleine.farman@legalease.co.uk

For more on third party funding see the feature: ‘The bigger short – third party funding bets on new markets and models’

Legal Business

Akin Gump and Proskauer pick apart Dentons’ City private equity team

Akin Gump and Proskauer pick apart Dentons’ City private equity team

Two leaders in Dentons‘ private equity practice in the City have quit the firm, with Igor Krivoshekov departing for Akin Gump Strauss Hauer & Feld and Eleanor Shanks set to join Proskauer Rose.

Krivoshekov, who was a partner at now defunct Dewey & LeBoeuf before joining Dentons six years ago, has built a strong private equity practice handling oil and gas M&A during his time at the firm. He has been one of the leaders of Dentons’ PE practice in London, which over the last five years has improved its standing in the City market for mid-market deals.

Shanks, who worked closely with Krivoshekov, made partner at Dentons in 2014 after just two years at the firm. She started her career at Norton Rose Fulbright, before a six year stint at US firm Gibson, Dunn & Crutcher.

The hires come amid a rapid expansion of Akin Gump and Proskauer’s City offices, with Akin Gump expanding out its London private equity practice following its landmark takeover of now defunct Bingham McCutchen’s $50m London office in 2014. The bulk of the Bingham team was an esteemed restructuring practice headed by James Roome, Barry Russell and James Terry, but also contained a strong regulatory team. Earlier this year the firm landed Jones Day arbitration star Hamish Lal, who headed that firm’s construction group before his switch.

‘Igor will continue our recent growth trajectory in London and will be instrumental in the ongoing expansion of our international energy offerings,’ said Akin Gump chairperson Kim Koopersmith (pictured). ‘He advises on highly complex private equity transactions and, with his extensive history of deal making, will be an invaluable resource to our clients, particularly those in the energy space. I look forward to welcoming him to Akin Gump.’

Krivoshekov has handled deals across a swathe of jurisdictions, including the US, the UK, Russia, Eastern Europe, Asia-Pacific region and Latin America. His clients include L1 Energy, an investment group set up by Russian billionaire Mikhail Fridman’s fund Letter One, Altera Capital, Partners Group and Aton Capital Partners. In early 2015 he and Shanks led for L1 Energy on its $5.7bn acquisition of RWE Dea, the oil and gas unit of Germany’s largest power generator, RWE. Akin Gump has also advised Letter One in the past, from its US offices.

Sebastian Rice, co-head of Akin Gump’s London office, added: ‘Igor has worked with leading private equity houses across Europe on some very significant transactions, in particular in emerging markets. His credentials across private equity, energy and emerging markets fit very well with the firm’s focus internationally, and we will be delighted to have him on our team.’

For Proskauer, the arrival of Shanks follows a rapid scaling up of its private equity practice since the hire of City heavyweight Steven Davis from King & Wood Mallesons in 2014. This year, the firm has already added leveraged finance partner Ben Davis from Reed Smith and private equity real estate duo Jo Owen and Vikki McKay from DLA Piper in London. ‘Eleanor’s strong track record advising private equity players further strengthens our position in the industry as we continue to expand our presence in Europe,’ said Davis.

Dentons said in a statement: ‘We have been steadily growing our corporate and private equity practice in the UK over the last few months with several key lateral partner hires, including David Collins – who now heads up the department – as well as Stephen Levy, Martin Mankabady, Nikolas Colbridge and Jonathan Cantor. ‘Under David’s leadership we continue to focus on strengthening our corporate and private equity offering to clients, and our capabilities, combined with our international reach, mean we are very well placed to take advantage of new opportunities in the market. We want to thank Igor and Eleanor for their contributions to the firm and wish them well.’

tom.moore@legalease.co.uk

Legal Business

Continued integration: Akin Gump solidifies takeover of Bingham’s London outpost with office move

Continued integration: Akin Gump solidifies takeover of Bingham’s London outpost with office move

More than 18 months since combining in the City, the 21-partner team that left now defunct US law firm Bingham McCutchen for Akin Gump Strauss Hauer & Feld has moved in with its colleagues as the firm puts all its London lawyers under one roof.

The partners are part of a 28 partner team which moved from Bingham to Akin Gump, and included five partners in Hong Kong and two in Frankfurt. The London team had continued to operate out of Bingham’s old offices near Bank but now Akin Gump has leased a further two floors at its base at 10 Bishops Square, London, so that the group can unite under one roof. The firm has added the ninth and third floor to its current operations on the seventh and the eighth, giving the firm space for around 110 lawyers throughout the building.

The former Bingham office, led by City restructuring heavyweight James Roome (pictured), moved en masse to Akin Gump in September 2014 in one of the City’s biggest ever lateral recruitment plays. The team, worth around $52m in revenues, doubled the size of Akin Gump’s London presence before US rival Morgan Lewis & Bockius swooped in to take over the rest of the firm.

In the first full year since the merger of the two London offices, Akin Gump’s revenue jumped from $35.8m to $91m in 2015. The ex-Bingham group will now give up its offices at 41 Lothbury, London, to make the 15-minute walk over to the enlarged offices near Liverpool Street.

Moving into Akin’s two floors at 41 Lothbury is another expansive US firm, Fried, Frank, Harris, Shriver & Jacobson, which will double the size of its London square footage when it moves over from 99 City Road. Under the leadership of Graham White, who joined the firm from Kirkland & Ellis in October 2014, Fried Frank has reshaped its London offering with a string of lateral hires, including the arrival of a funds team led by Mark Mifsud and Kate Downey from his former shop in May 2015.

Roome told Legal Business: ‘It’s a huge relief after working together for 18 months and now Sebastian Rice, won’t have to spend his entire time walking between Liverpool Street and Bank! This gives us a lot more possibilities and more time to speak face to face. It’s not as much space as we would have liked, but when the opportunity arises [for more space], we will take advantage of it.’

Rice added: ‘We continue to integrate the practices in London and internationally and there is no doubt this move will further assist us in that. We see this as a very positive move for the firm in London and look forward to developing further our client offering.’

tom.moore@legalease.co.uk