More than a decade after the 2008 global financial crisis, the world finds itself gripped by a pandemic and the resulting economic turmoil. As we saw in 2008, law firms won’t escape the impact of the recession, particularly as clients trim budgets and reduce demand for legal services. But unlike companies with diverse sources of capital, law firms, still predominantly structured as partnerships, will more acutely feel the cash crunch as they grapple with this outdated ownership model.
Already firms have begun to reduce salaries, hold back partner distributions and furlough employees to combat declines in revenue. In the short term, partners are expected to earn materially less income while firm growth and associate development are paused; in the long term, firms may need to draw down on lines of credit, lay off employees or, in extreme cases, dissolve. Continue reading “Guest comment: An argument for outside investment in law firms for the post-Covid era”
Making partner is a huge step up for any lawyer and it is one that can have a major impact on their earning profile. We spoke to Emily Bernstein and Chris Duck, two of Investec’s private bankers working in this space, about the unique challenges they help clients overcome.
What are the biggest concerns lawyers have once they make partner? Continue reading “Sponsored briefing: Mortgages for law firm partners – A Q&A with Emily Bernstein and Chris Duck”
The partnership of Freshfields Bruckhaus Deringer has voted in sweeping reforms to its handling of misbehaviour, including financial penalties, as the #MeToo fallout continues to plague the profession.
The move to establish a conduct committee followed a consultation and implements new enforcement protocols that mean partners who receive a final warning about their behaviour could face an automatic fine equal to 20% of their profit share for 12 months. The model is similar to those that have been successfully rolled out elsewhere in professional services, such as accountancy and consultancy firms. Continue reading “Freshfields partnership votes in misconduct penalty as #MeToo continues to overshadow the industry”
Reversing a common trend among many City firms in recent years, RPC is to introduce the roles of fixed share and salaried partner for the first time in its history – a move the firm said reflected ‘changing expectations of people, market and client demand’.
However, the status of its current 76 equity partners will remain unchanged – the move only applies to future promotions and hires. Continue reading “RPC abandons all-equity structure in sweeping partnership shake-up”
CM Murray is a leading specialist partnership and employment law firm based in London. The firm is ranked by the legal directories as Tier 1 for both of its practice areas, and enjoys a market-leading reputation for advising professional and financial services firms on sensitive and complex cross-border partnership and employment law issues.
The breadth and depth of the firm’s partnership practice encompasses the 360-degree life cycle of partnership businesses, offering both contentious and non-contentious partnership law advice. The firm’s non-contentious law firm expertise includes establishing law firm LLPs/partnerships and alternative business structures, drafting and reviewing LLP/partnership agreements, advising on partnership and governance structures, partner remuneration and contribution, LLP conversions and internal restructuring, international network structures (including Swiss Verein structures), and associations and law firm M&A. Continue reading “Sponsored briefing: ‘Fantastic boutique CM Murray dominates the market in the partnership space’”
A Hogan Lovells partner has agreed to leave the firm after being caught viewing pornographic images on a work computer.
The firm suspended the partner in November last year and launched an investigation after the partner in question was caught by a lawyer from a window in Irwin Mitchell’s offices, which are next to Hogan Lovells’ base on Holborn Viaduct. Continue reading “Hogan Lovells partner leaves firm after watching pornography at work”
James Tsolakis, NatWest: One of the great challenges setting this up with Alex is in the long period I have been a banker to the legal profession, the rate of change is faster than I have seen for a long time. The challenge was defining the discussion. It could have been IPOs, artificial intelligence, international expansion – any number of things. I am pleased we chose a subject that will ultimately touch all these other subjects driving change in the sector.
Alex Novarese, Legal Business: Kicking off, Sharon, what worries you about talent? Continue reading “The talent debate: The war rages on”
In a landmark for the legal industry that nevertheless raises some uncomfortable truths, the number of working female solicitors in England and Wales has exceeded men for the first time according to new figures.
Reflecting the decades-long influx of junior women to the profession, the total number of women lawyers in the world’s second largest legal market is now 50.1% of the UK’s 139,624 practising certificate (PC) holders, and 48% of the 93,155 solicitors in private practice. Continue reading “The future is female – women lawyers outnumber men in UK as the in-house boom continues”