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Finance & projects head Michael Kent and global banking chief Gideon Moore have emerged as the frontrunners to succeed Simon Davies (pictured) as managing partner of Linklaters with a replacement set to be elected by November.

With Davies leaving the top job a year early to join Lloyds Banking Group as the bank’s most senior lawyer in the New Year, the race to succeed him has seen Moore and Kent garner wide support throughout the Magic Circle firm. A long list will be formed within the next fortnight, which will then be whittled down to a shortlist by the end of August.

A partner at the firm told Legal Business: ‘Gideon and Michael are the frontrunners. Kent is the most open in publically declaring his hand. He’s the person that people know wants the job while others have been a bit more coy. Gideon has kept his cards close to his chest but people are now getting out of the boxes. Gideon has the support of a big practice area and he’s got a lot of the skills to do it. As a leader you have to have respect and people respect him. He’s pretty analytical and pretty sharp. Gideon starts with a bigger home base but Michael is regarded as a calm and steady hand.’

Asia managing partner Marc Harvey and Western Europe managing partner Pieter Riemer are also expected to make the shortlist. Harvey is viewed as having developed the firm’s Asia practice since replacing Stuart Salt in February last year, with Asia the only region to come out of the last financial year with meaningful growth as the firm’s revenue rose by just 1% to £1.27bn.

Harvey, who has also headed the firm’s global litigation group since 2010, has held a number of management positions and has been tipped as an outside bet to win the five-year term. With Harvey open to relocating back to London, after leaving Silk Street nearly two decades ago to boost the firm’s litigation group in Asia, one ex-partner told Legal Business ‘he’s had a lot of success and Linklaters is fixated on Asia so Marc carries a bit of currency’. Harvey, who made partner in 2000, served as head of China for the four years previous to running the firm’s Asia strategy.

Hong Kong-based Harvey and Amsterdam-based Riemer would be viewed as the biggest departure from the ‘iron rod’ management style employed by Davies, with both credited as possessing high amounts of emotional intelligence. Reimer is, however, seen as a longshot for the top job with little support outside of Western Europe. With around half of Linklaters’ 450-strong partnership stationed in Silk Street, one ex-partner comments: ‘Peter is a nice guy but the weight of the firm is at Silk Street so why would you trust a partner in a 20-man office in Amsterdam to run the entire firm?’

The only blemish against Kent, who is receiving wide support from partners outside of the firm’s power hubs of corporate and banking, is a question mark as to whether his management style would be too much of a continuation of what went before. One Linklaters partner comments: ‘He’s a bright guy and a straight shooter. The regulatory group has grown a lot and he’s run and built that group very well. He’s a very calm and measured guy and is a bit more like Simon than the rest of the frontrunners. He’s a little bit colder, with Harvey probably the most charismatic of all of them.’

Nonetheless, with corporate heavyweight Charlie Jacobs the strong favourite to secure the senior partner poster post set to be vacated by Robert Elliott next year, there is a feeling among Silk Street partners that Kent might offer complementary skills to the high-profile partner.

Moore, who has a more international practice than Kent, is deemed to have had a successful four years in charge of the firm’s banking group, which accounts for about 25% of the firm’s global revenue. Having had a strong run on the back of a buoyant restructuring market following the financial crisis, many inside Linklaters feel Moore has outperformed his peers at other Magic Circle firms in guiding the group through a more difficult period recently amid a shift from traditional bank lending to other financing models.

One former partner told Legal Business: ‘The reason Simon Davies won it was that he’d never really offended anyone so he was a neutral choice. Gideon is marmite and he has to face up to the fact that his profile is not equal to his personality. I’m not sure Gideon Moore as managing partner and Charlie Jacobs as senior partner is a ticket anyone wants in the firm as it vests the power in the two most mainstream groups and two high profile partners. Some people will think Michael Kent is the better option for that reason. Michael is a highly respected partner and he’s neither corporate nor banking. He’s a very decent guy and people would respect him. He would bring a lot more presence back to the managing partner role. Michael is a frontrunner, if not the frontrunner. ‘

Elliott, who is overseeing the managing partner election and attending executive committee meetings in light of Davies’ earlier than expected departure, is widely expected to stay on at the firm in a consultant capacity once his term ends on 30 September 2016. David Cheyne, who Elliott succeeded as managing partner in 2011, was similarly asked to stay at the firm and kept on as a consultant.

tom.moore@legalease.co.uk

It’s long been a trusted technique for major corporates to ship in public figures for advisory roles to open doors and bring a touch of geopolitical gravitas to the table but so far the idea has rarely made it to law. But Linklaters  has decided to borrow from the plc playbook with the appointment of former UK Foreign Secretary William Hague to a newly created ‘International Advisory Group’ in a bid to bring in an ‘external perspective’ on the firm’s strategy.

A statement issued by the City giant said the new body will aim to support ‘the governance and strategic direction-setting of the firm’, and consist of internationally-renowned individuals that can offer guidance on matters that impact the firm and its clients.

‘[The group] will act as a sounding board, providing critical input as we develop and refine our strategy, suggesting priorities for consideration, highlighting opportunities, and signposting risk,’ Linklaters said in a statement. The firm said that the once the group becomes established, it will play a role in Linklaters’ global partner meetings.

Linklaters senior partner Robert Elliott commented: ‘We believe that under William’s leadership, this group will provide us with an extra gear in making the most of current opportunities and shaping the long-term future of the firm. It will include outstanding individuals bearing international reputations, who can bring innovative thinking, genuine insight and high quality constructive input.’

Despite some of the fuzzy messaging around the announcement, it seems more likely that Hague has been brought in for his ability to position Linklaters in the minds of key influencers rather than for his incisive take on the pros and cons of lockstep remuneration or how to drive margin via a client relationship programme.

Hague’s appointment comes after the foreign secretary stood down last year after a cabinet reshuffle. He will join Linklaters’ advisory group in September 2015 as its sole member with the discretion to appoint others.

Discounting a speech as a teenager at a Conservative Party conference, Hague rose to early national prominence as leader of the opposition between 1997 and 2001, when he led a party struggling to cope with the early years of the New Labour bandwagon. His term as Conservative leader ended with the 2001 general election with a second comprehensive defeat at the polls. However, Hague, a superb public speaker generally judged in Westminster to have an intellectually agile mind, made a substantial comeback in political life as a well-regarded foreign secretary in the 2010-2015 coalition administration. He stood down as an MP after 26 years ahead of this year’s general election.

Hague was quoted in the statement as saying: ‘This group will be flexible and pragmatic in how it supports the firm and I am looking forward to spending time with the talented workforce who drive this great firm and the partners who lead it. Additional members of the group will be identified over the coming months and my priority will be to find innovative and influential thinkers who are well renowned in their fields.’

The addition to Linklaters’ leadership team comes as the City law firm this month confirmed that its managing partner Simon Davies was standing down early to take a senior legal and strategic role at Lloyds Banking Group.

jaishree.kalia@legalease.co.uk

On the same day that the City giant posted its results for the last financial year, Linklaters‘ managing partner Simon Davies has confirmed he will retire from the firm at the end of 2015, a year ahead of the end of his current term, to join Lloyds Banking Group.

Davies, who became Linklaters’ youngest-ever managing partner at the age of 40 when he assumed the role in January 2008, has told the Linklaters partnership that he will be joining Lloyds Banking Group as chief people, legal and strategy officer. He will also take a place on the bank’s executive committee.

While Davies was expected to leave the firm at the end of his current term, the resignation will lead to an accelerated election process to find his replacement. With the firm already in a process to elect a new senior partner, a post London corporate partner Charlie Jacobs is viewed as a leading candidate for, Linklaters will experience a complete management overhaul.

A spokesperson for Linklaters said: ‘Simon’s current term as firm-wide managing partner was due to end 30 December 2016. Given this development, the partnership board is planning the way forward, looking to ensure an orderly transition. Members will consult on the best way to achieve this and will aim to reach a decision before the end of the month. Senior partner Robert Elliott will attend executive committee meetings on a regular basis and will work with the committee to ensure continuity of management during the transition.’

Lloyds chief executive António Horta-Osório said: ‘This will be a key role for the group and with his extensive experience of managing and leading a major global business, I have no doubt Simon will prove to be an invaluable addition to the group and to our senior team.’

Davies will leave Linklaters after two terms as global managing partner. The Welsh-born corporate and securities lawyer made his name at the top City firm in its Asia practice before upsetting two higher profile contenders – Nick Eastwell and John Tucker – to secure the managing partner role in 2007.

Succeeding Tony Angel, Davies was regarded as hawkish on performance and ensuring that Linklaters’ business was intensely focused on premium work even as the firm was soon engulfed along with its peers in the banking crisis through 2008 and 2009.

Davies was a force in pushing through two major partnership restructurings at the firm, in 2009 and 2011. Controversy over the second restructuring led the firm to put Davies’ re-election as managing partner in 2012 to a second vote after initially falling short of the 75% margin needed to ratify the appointment.

Despite the reputation as a hard-nosed leader, the state-educated Davies also strove to reposition the conservative Linklaters as more progressive and diverse business. He also helped expand Linklaters’ reach in the Asia Pacific region after shifting the firm’s strategy to forge a formal tie-up with leading Australian law firm Allens in 2012.

While it is unusual for senior leadership of leading law firms to stand down early, Ted Burke, then managing partner of Linklaters’ old sparring partner Freshfields Bruckhaus Deringer, stood down part way through his term to join US private equity house ArcLight Capital in 2013.

Davies said: ‘I have thoroughly enjoyed my 25 years at Linklaters. It’s a fantastic firm that I will be leaving with real sadness but as my second term as firm-wide managing partner draws to a close, I feel the time is right for me to accept a new challenge and take on a senior executive leadership role with an outstanding business. The role involves leading in areas I have experience and expertise in – people, legal and strategy, but in a different industry which is very exciting.’

Elliott added: ‘Simon has brought unrelenting energy and commitment both to our clients and to our business – very ably steering the firm through challenging economic times. We owe him a debt of gratitude for his tremendous contribution and for the current very strong footing of the firm. This represents a fantastic new challenge for Simon and promises to provide an interesting and fulfilling continuation of his career. The partnership board will now consider the best way forward in order to ensure an orderly transition, ultimately leading to a process which will elect what I’m sure will prove an outstanding new leadership team.’

The first Magic Circle firm to release its financial results this year, Linklaters this morning posted a 1% rise in revenue to £1.27bn. Profits per equity partner (PEP) rose 2% from £1,340,000 to £1,368,000.

tom.moore@legalease.co.uk