Comment: Apocalypse never – City leaders’ 2020 results show resilience to test the most confirmed Cassandra

City with red sky and planes

Given the savaging that Covid-19 has done to our collective sense of time, forgive a quick history lesson on the halcyon days of 2019. Pulling together the LB100 report for the 2018/19 period, Legal Business reflected: ‘After a credible performance, the profession now faces a slowing economy at home and abroad amid mounting unease generated by a government under Prime Minister Boris Johnson hitting an increasingly Trumpian tone on forcing the UK out of the EU.’

Even the most casual reader of that year’s LB100 report would have noted the ominous imagery drawing on Conrad, Coppola and Castro as British institutions that summer buckled under the weight of entrenched discord. The message was clear, leading law firms, which increased revenues by 9% across the LB100 to hit £26.35bn, had performed well but an outlook clouded by a slowing economy, Brexit uncertainty and political instability meant harder times were coming. Continue reading “Comment: Apocalypse never – City leaders’ 2020 results show resilience to test the most confirmed Cassandra”

A&O aims to tackle ‘uncomfortable truth’ with 2025 ethnic diversity targets

Allen & Overy is confronting the must-solve issue of achieving ethnic diversity in City law with a raft of new targets aimed at levelling the playing field by 2025. 

The set of targets includes having 15% of partners and 25% of lawyers and support staff identifying as ethnic minority in the next five years.  Continue reading “A&O aims to tackle ‘uncomfortable truth’ with 2025 ethnic diversity targets”

‘Stable and consolidated’: Clydes posts steady revenue growth but profit hit after year of investment

Peter Hirst

Clyde & Co has notched up its 22nd consecutive year of revenue growth, the firm’s latest financial results show, albeit with a slower turnover increase than the previous financial year and a modest dip in profit following internal investments. 

Firmwide revenues were up 3% from £611m to £627m in 2019/20, a decrease on last year’s pacier 11% growth rate. Despite the reliable revenue growth, profit at the firm fell 5% to £143m ‘due to increased investment,’ while profit per equity partner (PEP) likewise dipped 4% to £665,000  Continue reading “‘Stable and consolidated’: Clydes posts steady revenue growth but profit hit after year of investment”

Revolving Doors: US firms take lead as lateral hire market emerges from hibernation

US-branded shark fin in a City sea

As the lateral recruitment market in the UK and Europe begins to reawaken, it is clear US firms have picked up where they left off, going in hard with key hires from Global 100 rivals.

New York banking heavyweight Cahill Gordon & Reindel has made the standout move of late, strengthening its nascent London finance practice with the hires of Jonathan Brownson and Jake Keaveny from Allen & Overy, who will be joining in September.  Continue reading “Revolving Doors: US firms take lead as lateral hire market emerges from hibernation”

‘On the front foot’ – RPC upbeat after holding steady amid year of change

James Miller

RPC posted muted revenue growth for 2019/20 following changes to the firms practice lines, its latest financial results reveal, while profit per equity partner (PEP) saw a slight dip. 

Turnover at the insurance and litigation specialist rose 1% to £110.1m, with the firm’s commercial & financial markets disputes, insurance, and technology & media practices among the primary drivers of growth as the financial year closed. PEP, meanwhile, fell 4% to £424,000, albeit after a striking 27% rise last year to £442,000 off the back of a contraction in the firm’s equity partnership.  Continue reading “‘On the front foot’ – RPC upbeat after holding steady amid year of change”

Dealwatch: ‘glass half-full’ as Global 100 leaders line up on Centrica and eBay disposals

Dealmakers could almost be forgiven for asking ‘what crisis?’ lately as a raft of recent major deals, including Centrica’s $3.6bn sale of its US energy business and Adevinta’s $9.2bn acquisition of eBay’s classifieds business, have kept Global 100 lawyers on their toes during lockdown. 

These major transactions, along with a raft of private equity deals involving Silver Lake, have kept international playmakers inundated during what, by rights, should have been a less than optimistic period.  Continue reading “Dealwatch: ‘glass half-full’ as Global 100 leaders line up on Centrica and eBay disposals”

‘Strong foundation’: Another year of steady growth as Simmons prepares for challenges ahead 

Jeremy Hoyland

Simmons & Simmons has recorded another year of steady growth, its latest financial results reveal, with all key financial metrics up as the firm readies itself for more difficult times ahead.

The firm’s financial results published today (24 July) show firmwide revenue rose 4% to £390m, a slow rate on last year’s 6% increase and a considerable drop from the firm’s 12% hike in 2018. Meanwhile, the firm’s overall profit stood at £126m, up 6% on last year and profit per equity partner growth surpassed last year’s figure, hiking 7% to £756,000. Continue reading “‘Strong foundation’: Another year of steady growth as Simmons prepares for challenges ahead “

HFW bounces back with profit and turnover growth in a strong 2019/20

Jeremy Shebson

HFW produced a strong showing over the last financial year, its latest financial results reveal, with profits rebounding and revenues up after a muted performance in 2018/19.

Profits were up to £47.3m this year after dipping 9% to £43.3m the previous year, while profit per equity partner recovered 11% to £526,000 following a 11% deficit in the 2018/19 results. Revenue, meanwhile, also grew: up 9% to £195.2m, while revenue per lawyer rose 7% to £389,000.  Continue reading “HFW bounces back with profit and turnover growth in a strong 2019/20”

In Conversation: James Stebbing, general counsel, Six Nations Rugby and the British & Irish Lions

rugby pitch

james-stebbingGC: Start by telling us a little bit about your current role and your career to this point.

James Stebbing (JS): I’m the GC to the organisation that runs the Six Nations Championship and I’m seconded on an ongoing basis to be the GC of the British and Irish Lions.

In my previous role, I was Head of Legal at the Rugby Football Union (RFU). Because there was no dedicated GC to either the Six Nations Championship or the British and Irish Lions, I’d also been ‘dragged in’, so to speak, to help out on a few things on the side of the desk. The catalyst for my current role, really, was a potential private equity deal with regard to investment in the Six Nations Championship.

Originally, I trained and qualified at Harbottle & Lewis, very much intending to go into sport. My qualification coincided with the aftermath of the global financial crisis, so jobs generally were few and far between. But I knew two things. One, that I wanted to get into sport. Those roles were rare at the best of times, let alone in a major downturn. I also knew that I was going to end up in-house rather than private practice.

I joined Vodafone – they were a client of Harbottles’ at the time – and I found myself on a major mobile payment project, which led to a role at Barclays at a time when they were investing heavily in mobile banking.

But I very much wanted to keep my ear to the ground, hoping that an appealing sports role would come up. A commercial legal job came up at the RFU, which I applied for and was fortunate enough to be appointed to and which eventually led to promotions to Senior Legal Counsel and then Head of Legal.

GC: That sounds like an interesting journey. How common is your role? Do you have a sense of how many versions of you there are out there in other sporting organisations?

JS: Sport roles are few and far between. Harbottle & Lewis is a media and entertainment firm with a fantastic roster of sport, music and film clients, and when I was joining the firm there were over 150 applications for each training role. Fast forward to the current climate – the last time I recruited for the RFU for a junior role in my team and there were a similar number of applicants, which highlights how rare these types of roles are.

I get asked a lot about how to get into sport.  It requires a good solid foundation in where you trained and qualified, but it also requires a number of boxes to be ticked –being in the right place at the right time helps, as does cultural fit.  Sport is a very specific industry. But at the same time, it’s just another business.  A good sports lawyer is a good lawyer first and foremost. You just have to be able to apply those principles to a specific industry and a specific set of circumstances.

GC: In addition to the GC roles at the Six Nations and British and Irish Lions and, you serve as company secretary and hold directorships. What impact does this have on your job?

JS: Wearing different hats allows me to develop my skillset and hopefully add value in multiple ways.   I’m doing an MBA at the moment and these non-legal experiences help when I’m sat around the executive and board table by enabling me to contribute holistically about how the business can improve performance.

There’s always a danger of being accused of straying out of my lane, but to me, any effective leader within an organisation needs to be multi skilled, multi-faceted and able to add value in a number of different ways.

GC: I imagine working for sporting organisations, there isn’t as much of a profit motive as there might be in other kinds of entities. Does that change the priorities of the GC?

JS: There’s a broad spectrum. You’ve got global powerhouses like a Manchester United, which is listed in New York and has a hugely diversified portfolio off the pitch. But you’ve also got sports governing bodies, who have to balance their role as custodian of their respective sports from top to bottom with the need to generate as much revenue as possible to invest in the sport in order to grow it.

From my perspective, whether it’s the Six Nations Rugby Championship or the Lions tour, it’s about putting on a great sporting experience and generating as much money as possible to put back into the sport. The more money that gets generated, the more that can be reinvested in the sport to grow it and try to encourage more participants and commercial partners. As the valuation grows, the level of interest from broadcasters and sponsors grows, and you’re also talking about a better product which inspires the next generation of kids to pick up the sport.

Going back to the original question, I’ve spent time working in telecommunications and financial services, and the thing that really sets sport apart is that people have a genuine and emotional connection to the subject matter. Of course, a mobile phone is the centre of most people’s lives and acts as a conduit to be able to bank and buy things, but there’s only so much passion that can be derived from a mobile phone. Equally, how much passion do people have in opening bank accounts? Whereas with sport, there’s an innate ability to inspire, to evoke emotion, to bring people together in a really human way.

There’s the old saying: sport is either the most important of the unimportant things, or the most unimportant of the important things. It’s special in that regard. That’s what you realise when you are part of the fabric of it: it has that ability to touch peoples’ lives in a way that nothing else does and the absence of live sport during the lockdown has really underscored that.

GC: You mentioned you started off in a less senior role and moved your way up. What infrastructure was there preceding you taking over your current job?

JS: For my current job, it was a completely new position.

The Lions team is unique in sport because you take four international sports teams who spend the best part of four years trying to do everything they can to beat each other.  And these four teams are absolute arch-rivals. Not just in a pure sporting sense, but you’ve got a lot of history between England and Wales and Ireland and Scotland which goes back hundreds of years.  And then every four years, those guys get together to form one team to go to the other side of the world and take on the best of the Southern hemisphere.

That just doesn’t happen in any other sport. The closest thing you’d probably get is the Ryder Cup whereby every couple of years the best in Europe will form a team and the best in America will form a team, but that’s still premised more on an individual sport rather than a team sport. It’s incredibly special.

The Lions operates like a start-up. The tour happens, the profits get distributed amongst the shareholder unions and then everything gets dismantled. The players go back to their respective countries, and the organisation gets stripped back to its bare bones. You’ll then slowly and incrementally build up to the next tour and it continues in that cyclical fashion.

In days gone by, the Lions relied exclusively on external counsel, and on the Six Nations side, it’s been the same thing. That’s worked, and there’s a great relationship with our external counsel. But both the Six Nations Championship and British and Irish Lions Tours are now huge global sporting properties and very much merit fit for purpose executive teams – which includes a GC!

GC: Is there a typical day for you?

JS: To a certain extent, yes, I’m doing what a GC should be doing – being that trusted advisor to the CEO and the rest of the executive team, playing a similar role to the board, trying to focus on the stuff that is keeping the CEO and the board up at night, and managing legal risk accordingly.

But really, it is a crazy time. A lot of it at the moment is about scenario planning. The Six Nations Championship takes place in February and March each year. The pandemic struck mid-tournament. So in the end we had to postpone four matches that we are aiming to replay in the autumn of this year. How do we get those four international Rugby matches and shoehorn them into what will be a new Rugby season, recognising that there is a number of different rights holders who are also looking to reschedule? The sporting calendar this autumn is already looking congested with things getting postponed in the first half of the year and being pushed into the second half.

The other big thing is that Rugby has traditionally been split between the northern and southern hemisphere. The two respective calendars don’t dovetail neatly, which leads to conflict, often between clubs and countries. Because of what’s gone on, because of Coronavirus creating an artificial pause for the sport across the board, this has given us the opportunity to take a step back and understand if this dreadful thing that’s happened can act as a potential catalyst for change and a realignment of the calendar on a global level to make it work a bit better for everybody, so that fans win, the players win, the commercial partners win and everyone gets a bit more out of it.

GC: On the subject of using COVID-19 as a catalyst for positive change – with so many organisations around the world being involved in the work you do, have you found other entities’ priorities aligning more in the current environment?

JS: Let’s start with the positives. I’d like to think that this has made everyone a bit more human; a bit more cognisant of the fact that we are all quite fragile. This has been a real leveller in terms of everyone realising that there’s more to life than the grind that everyone has been caught up in. In that regard, there’s been some positivity.

I think that sports have realised that it’s quite a small ecosystem and ultimately, we all rely on one thing: sport being able to be played. If it isn’t then there’s no product to monetise and enjoy.

Rightsholders, broadcasters, sponsors – everyone needs each other. But I think that everyone has spent the last few months figuring out what has been going on and what it has meant for their respective businesses, and what the recovery looks like. It feels like we are starting to get some sort of understanding about the true nature of the impact and that spirit of compromise might be starting to erode as people get firmer in their positions and are a bit more confident of a way forward.

GC: As you see other sport leagues resuming and grappling with COVID-19 challenges, how much certainty is there that next year’s tour is going to be able to go ahead?

JS: Well, football was always going to go first. It’s much bigger than rugby.  But also, in football, there are less challenges because of what’s required to play the game of rugby – the scrum, for instance – the risks are higher. Football is still a contact sport, of course, but the level of contract isn’t as extreme as it is in rugby.

In terms of the Lions tour next year, we’ve got a number of challenges but we’re working on the basis that it’s business as usual and we will focus on what we can control.

GC: I suppose if by next year, you still can’t do the tour, then other sports leagues will be in a much worse situation than you.

JS: Yes. That scenario could play out either because there’s a disruption between now and then, or there’s a resumption of normality between now and then and there’s a second wave. Both those things are plausible.

Is it played to a full stadium or behind closed doors? Is it somewhere in between? All of those scenarios will completely affect the P&Ls because of the various factors at play, so there’s currently plenty of scenario planning going on.

GC: Before we move on from the COVID talk, how have you found the experience during this time, generally speaking?

JS: It’s been a great opportunity to collaborate, because everyone is in it together. I’m still hopeful that there continue to be positives that come out of such a dreadful situation.

In a sporting sense, it’s almost a microcosm for the wider economic piece in that if you were a sound business going into the crisis, then you’ve taken a hit, but you’ll come out the other side. If you were a business that was already under stress, then this is going to take those businesses right to the edge if not over the cliff. That’s the same in sports. The big, premium sports are going to come out of this affected but still premium in terms of fan engagement, sponsor and broadcast interest. It’s the smaller sports that may struggle because from a consumer perspective, everyone defaults to what they know. If you’re a subscription broadcaster, you’re taking a hit on paying subscribers, and if you’re a free-to-air broadcaster then ad revenues have gone down. And if you’re a sponsor, there’s more constraints on marketing budgets.  Overall that means you’re going to be that much more cautious about where you’re putting your money, and you’re more likely to invest it where you know you’ll get the most likely short term return.

GC: Do you think there will be lasting changes to rugby as a sport as a result of this pandemic?

JS: I really hope so. It goes back to my earlier point that this is a really good opportunity to address some of the challenges that the sport is facing.

‘Doing business the right way’ sees PEP fall significantly at Pinsents as turnover growth slows

John Cleland

Profit per equity partner (PEP) endured a 12% drop at Pinsent Masons over the last financial year as the firm continues to hold back funds from partner profits to prioritise internal investment.

PEP now stands at £546,000 at the firm compared to £620,000 last year, when PEP was clipped by 5% as Pinsents held back funds in the region of £6m for the purpose of investment in the business. Continue reading “‘Doing business the right way’ sees PEP fall significantly at Pinsents as turnover growth slows”

Freshfields emerges from year of challenges and investment with 3% revenue increase and flat profit

After what has been an eventful year notwithstanding the havoc wrought by the coronavirus crisis, Freshfields Bruckhaus Deringer has closed out the Magic Circle reporting season by announcing a 3% revenue increase to £1.52bn and flat net profit at £685m.

Profit per equity partner (PEP) stood at £1.82m, slightly down on last year’s £1.839m. Continue reading “Freshfields emerges from year of challenges and investment with 3% revenue increase and flat profit”

‘Making Freshfields an American brand’ – Inside the Silicon Valley launch handing the City giant a rare opportunity

Freshfields Bruckhaus Deringer

Roughly 30 seconds into conversation with Boris Feldman it becomes apparent why the charismatic litigator is regarded as a local legend in California’s legal community. Spitting out colourful quotes with the confidence that comes from having acted for pretty much every Bay Area brand name going, the bow-tied Feldman has nonetheless chosen an odd time in his lengthy career to change firm, let alone quit a local bellwether like Wilson Sonsini for the uncertain embrace of London’s oldest elite law firm.

But then Feldman’s move alongside four other senior lawyers to set up a Silicon Valley arm for Freshfields Bruckhaus Deringer speaks to two key issues of huge strategic importance for the storied London firm. The first point is that for the first time in its 43-year history in the US, Freshfields is attracting the kind of star power widely accepted as a prerequisite of success stateside. The second point is directly related: the acquisition of said talent has dramatically changed perceptions of the London firm in the US in just eight months after years of mixed opportunities and bad PR. Continue reading “‘Making Freshfields an American brand’ – Inside the Silicon Valley launch handing the City giant a rare opportunity”

Dual role for Barclays’ company secretary as veteran GC Hoyt stands down

Barclays has announced the appointment of Stephen Shapiro as group general counsel, in addition to his current role as group company secretary. Shapiro will succeed GC Powerlist regular Bob Hoyt on 1 August, who is stepping down after nearly seven years in the role.

Shapiro will join the executive committee and report directly to group CEO Jes Staley in his capacity as GC, and to group chairman Nigel Higgins in his role as company secretary. He joined Barclays in 2017 from SABMiller, where he was group company secretary and deputy general counsel, having previously held the role of global head of legal. Continue reading “Dual role for Barclays’ company secretary as veteran GC Hoyt stands down”

Guest post: The pervasive impact of your mood

Stressed office workers

Your mood stays with you much longer than you think and has an impact that you probably aren’t even aware of.

When we are in the grip of a strong emotion (positive or negative), we hold onto it much longer than we realise. Even though the moment may have passed, we internalise it and it stays with us. What is interesting is that that strong emotion we felt can affect the decisions we make for hours after the moment has supposedly passed and we have returned to what we believe is a steady (emotional) state. Continue reading “Guest post: The pervasive impact of your mood”

CC becomes third City leader to achieve post-pandemic growth as revenues climb £110m

matthew layton

With the coronavirus pandemic still wreaking havoc across many industry sectors, London’s legal elite has continued to buck the dire wider market with the third Magic Circle firm announcing revenue growth.

Results announced today (21 July) from Clifford Chance (CC), show the London outfit confirming robust growth in the face of the most challenging trading environment since the depths of the banking crisis. The City leader said that revenues for the 2019/20 period were up 6% to £1.803bn, up £110m on the previous year, while profits per equity partner increased 5% to £1.69m. Partnership profit for the year totalled £666m, an annual increase of 5%. Continue reading “CC becomes third City leader to achieve post-pandemic growth as revenues climb £110m”

A&O shrugs off lockdown to hike revenues 4% to £1.69bn in first post-pandemic results from UK law elite

Gareth Price

There has been much speculation about the impact of the coronavirus pandemic on the profession but the first set of results from a leading law firm has confirmed the gist of months of market chatter: they’re doing fine.

Allen & Overy (A&O)’s financial results for the 2019/20 year show that the City giant managed the remarkable feat of driving revenues up 4% to £1.69bn, despite nearly two months of its crucial year-end period catching the full brunt of the Covid-19 lockdown. Continue reading “A&O shrugs off lockdown to hike revenues 4% to £1.69bn in first post-pandemic results from UK law elite”

Guest post: Having an honest conversation with ourselves is the first step

Stressed lawyer illustration

Intellectually we all understand that how we feel has an effect on us. We understand that most of the time that the feeling will pass. Not always but in most cases, the feeling is often fleeting. We are not talking here about the feelings that come from intense loss and grief or trauma, rather the multitude of emotions that come and go and that are the ebb and flow of our mood over the course of a day.

Interestingly, we think we tend towards using a limited vocabulary around how we feel and what our mood is, erring on the side of simplicity in naming and recognising our mood. We are very familiar with feeling sad or happy, angry, fear or joy. However, nuance is often missing. Just search for ‘A-Z of emotions’ online and you may be surprised by the choice of words that can reflect the complexity of the emotions we experience. All the words are familiar but we bet they are not words you use readily to describe your mood. Continue reading “Guest post: Having an honest conversation with ourselves is the first step”

Linklaters edges revenue up despite global slump as City results start flowing in

Traditionally, like the proverbial London transit, you wait ages for one set of Magic Circle results and then they start coming in like buses. Hot on the heels of Allen & Overy (A&O)’s financial results, City peer Linklaters has just unveiled its 2019/20 numbers, with a similarly resilient showing in the face of the coronavirus pandemic.

Linklaters today (16 July) confirmed that its revenues for the period to the end of April were £1.64bn, up a marginal 0.7% on the previous year. Pre-tax profit stood at £726.9m, with profit per equity partner ebbing 5.1% down at £1.612m. Continue reading “Linklaters edges revenue up despite global slump as City results start flowing in”

‘Let’s tear up the rule book’ – Boies chief sets out her stall for a radical rethink of the elite law firm model

If law firms are to survive and thrive, they must dramatically modernise the way they work and serve their clients; they must become more adaptable, flexible and collaborative if they are to prosper. While clients have accelerated and evolved in their respective sectors, the legal industry itself has failed – at best to keep pace – at worst to change in any meaningful way. Either way, law firms remain significantly and meaningfully behind the curve.

Covid-19 may be the disruptor the legal industry has long needed, sparking change and generating the long-awaited revolution. If so, how will these changes manifest? And how do we create the blueprint for the modern law firm? Continue reading “‘Let’s tear up the rule book’ – Boies chief sets out her stall for a radical rethink of the elite law firm model”

Guest post: How legal services providers should be changing their models for the digital age

Working in a lightbulb

Covid-19 continues to disrupt our personal and professional norms. In business – particularly, the legal industry – seismic shifts are occurring in how work is conceptualized and delivered. Corporate law departments and law firms that have not made digital a priority are considering all options in a new, decidedly digital world.

Remote working and social distancing have ignited a new appetite for technology that accelerates the profession’s agility. The move towards digital has rapidly evolved in all other business functions, and for the legal function it certainly enables much more than remote work. It affords an opportunity to maximize client and professional resource experience and creates new commercial value while redefining legal’s contribution to the business. Continue reading “Guest post: How legal services providers should be changing their models for the digital age”