As Legal Business was unpacking the 2018/19 financial results of the UK’s top 100 law firms, the Office for National Statistics reported that Britain’s economy had shrunk for the first time since 2012. The 0.2% fall in output in the second quarter of 2019 was the latest in a series of ominous signs for a nation that appears, at the time of writing, on course for a cliff-edge exit from the European Union amid a chaotic political landscape and falling currency.
As Legal Business went to press, a row was raging over government moves to prorogue Parliament in the run-up to the 31 October deadline to exit the EU, threatening constitutional wrangles and a no-deal Brexit. A nation famed for exporting democracy, its strong institutions and a stable business environment is looking more Banana Republic than Britannia resurgent by the day. Continue reading “LB100 Overview: Apocalypse soon?”
This article sits in the news leader slot of our latest issue, but when considering Allen & Overy (A&O) and its epic courtship of O’Melveny & Myers, the defining factor has been the absence of news. Since it emerged last spring that A&O was in merger talks with the Los Angeles-bred firm, there have been bare scraps of information, alongside alternating whispers the deal was/was not on. Finally the resolution came on 2 September, with the pair announcing the end of the talks with the traditional noises about mutual respect.
The reason for the long delay was as much the scale and ambition of the merger as the inevitable complications of bringing 700 partners on side. The looming spectre of a messy ‘no-deal’ Brexit and fresh falls in sterling further strained a delicate situation, probably tipping it over the edge. Not only were the firms aiming for full financial integration upfront – a move never attempted on the scale of a £2.4bn transatlantic union – the aim was to do an immediate merging of governance, leadership and remuneration. Forget vereins and grace periods kicking tricky issues down the road. That all-in approach raised the stakes and logistic issues enormously. Not least it would have involved substantive reform of A&O’s remuneration structure to make it more compatible with a US firm. Continue reading “The end of A&O’s marathon O’Melveny merger bid reveals the stark choices facing the Magic Circle”
As the associate pay war rages, Thomas Alan finds major firms are falling back on cultural tropes in the expensive jostle for trainee talent
When Freshfields Bruckhaus Deringer announced in May a pay hike for newly-qualified salaries, rising from £85,000 to £100,000 with bonuses on top, new battle lines were drawn in the war for junior talent. Continue reading “Prestige, cash and a bit of spin: how to get ahead in trainee recruitment”
‘Some of the management are dinosaurs. They don’t understand how important this is.’ So speaks one loyalist Freshfields Bruckhaus Deringer partner of a growing unease shared by some regarding the City giant’s direction.
When Legal Business’ last focus on the 276-year-old institution hit desks in late 2015, the question was how newly-elected senior partner Edward Braham and co-managing partner Chris Pugh would secure the firm’s place in the Global Elite as the challenge from profitable US rivals mounted. Continue reading “The Global 100: The devil you know – The two visions for Freshfields”
Marco Cillario assesses the City-wide implications of Freshfields’ decision to dramatically hike associate salaries
A decade after leading the way in resetting downwards the going rate for City associates, Freshfields Bruckhaus Deringer in May set a new standard for Magic Circle firms, raising its newly-qualified (NQ) salaries from £85,000 including bonuses to a symbolic £100,000, with bonuses on top. Continue reading “Associate pay war, anyone? Freshfields sets new Magic Circle standard by raising NQ pay to £100k”
Magic Circle takes a leaf from US playbook after a parsimonious 2018
This time last year, Legal Business was still lamenting that the post-banking crisis clampdown on promoting partners at City firms had showed little sign of lifting, with the Magic Circle in particular promoting at levels insufficient to sustain partnership sizes. Continue reading “City elite sees sharp increase in partner promotions and improved female promotion prospects”
The best dispute lawyers often have something of the diva or rockstar about them – argumentative, uncompromising and brash. Michael Davison, head of Hogan Lovells’ litigation, arbitration and employment group, describes Neal Katyal, who runs the firm’s Washington DC disputes team, as such a figure. It is easy to see why: at the age of 48, Katyal had argued more Supreme Court cases than anyone else in US history and appeared as himself in Netflix’s political drama House of Cards.
London, of course, has no shortage of big characters in litigation, even if the clubby world of hard-living, hard-working boys is giving way to a more diverse crowd. To assess the prospects for the disputes market, Legal Business decided to focus on a dozen of the largest players in the City, spanning traditional leaders, the largest specialist firms and a handful of the most expansive US outfits. Continue reading “Bench strengths – Sizing up the City’s top dispute teams”
Slaughter and May has published its first partner-level pay gap report, revealing that male partners earn on average 8.9% more than their female counterparts.
Including all employees, the figures remained flat from 2017, with the mean pay gap between men and women standing at 14.4% and the median gap steady at 38.7%. Continue reading “Slaughters becomes latest to reveal underwhelming gender and ethnicity pay gap”
As 2018 draws to a close, an editor’s thoughts naturally turn to digging out stuff we’ve already done when they should be focusing on stuff we haven’t yet done for 2019. So with that proud tradition in mind, dear reader, below are ten defining pieces from the last 12 months that shone some light on this funny old game we call law.
We’ll now be taking a break from live blogging over the Christmas period but we’ll be returning early in 2019 for what promises to be another… eventful year in the legal profession. Nearly mentioned Brexit just then but I got away with it… Continue reading “Looking back on 2018 – The year in law through ten on-point pieces”
One of our favourite pieces of the year was our first cover feature of 2018, Alphas, which thanks to the tireless efforts of senior reporters Nathalie Tidman and Marco Cillario, aimed to provide a credible selection of the top female talent in City law.
It was always the plan, if the piece was well received, to build on it with an event exploring the trials, realities and rewards for women making it to the top of transactional law, not to mention providing a forum for polished operators to swap notes. Continue reading “Our latest event: 80 top partners and general counsel (plus a few token men)”