‘What sort of profession do we want to have?’ – young Black lawyers on diversity, inclusion, and what needs to be done

‘What sort of profession do we want to have?’ – young Black lawyers on diversity, inclusion, and what needs to be done

‘There’s lawyers all over the world. The question isn’t whether or not Black people can be lawyers. The question is, what is it about England and Wales that means that Black lawyers don’t get the same opportunities as their white counterparts? And there’s no way to explain that other than racism.’

This comment from one City associate frankly states the issue. ‘When we talk about DEI’, they continue, ‘it’s often a very polite, corporate way of saying “Don’t be racist.”’ Law firms are, perhaps understandably, reluctant to use words like racism in their communications. But failure to acknowledge the problem makes it all the harder to resolve.

‘Leave no stone unturned’: LB speaks to Barrister of the Year Edward Henry KC

‘Leave no stone unturned’: LB speaks to Barrister of the Year Edward Henry KC

Mountford Chambers’ Edward Henry KC won the title of Barrister of the Year at the Legal Business Awards this past September. LB‘s disputes correspondent Isabel Caine spoke with him to hear about his process, the art of cross examining, and his work on the two major cases that won him his trophy.

‘Freeths who?’ no more: LB’s firm of the year on brand revolution, their ‘watershed’ win – and what’s next

‘Freeths who?’ no more: LB’s firm of the year on brand revolution, their ‘watershed’ win – and what’s next

Last month, Freeths was named Law Firm of the Year at the Legal Business Awards, capping off a remarkable period for the firm that has seen it post yet more double-digit financial growth, achieve B Corp certification, and receive unprecedented attention for its role representing the postmasters in the Post Office Horizon scandal.

LB checked in with national managing partner Karl Jansen and London senior partner Philippa Dempster to talk about how the firm got to where it is, its ambitious aim to become the leading UK national law firm, and how its brand has changed beyond recognition as a result of the firm’s media moment.

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Latham rewards more than 20 star performers with new ‘super points’ rank

Latham rewards more than 20 star performers with new ‘super points’ rank

More than 20 of Latham & Watkins’ equity partners have made it into the elite firm’s ‘super points’ band, which is intended to better reward star performers by allowing them to earn nearly double the profit share of those at the top of the firm’s core lockstep.  

Legal Business has learned that 22 Latham partners now sit within the so-called ‘super points’ tier. 

Fourteen partners worldwide are understood to sit on the first additional tier at 1,300 points, with a further eight now on the maximum 1,700 points. Two partners in London – including chair Richard Trobman – are understood to be at the top level. All of the remaining super pointers are based in the US. 

Latham’s core modified lockstep ladder runs from 350 to 900 points, with 900 points equating to more than $5m last year, meaning that 1,700 points would nearly double this figure. 

On top of this, Latham also has a bonus pool of up to 15% of its profits available for discretionary division among partners. Combining this bonus with super points it is understood that total partner comp can now climb above the $15m mark for star performers. 

Latham partners approved the new remuneration structure in July, with equity partners taking part in a weighted vote based on points allocation rather than a one-person, one-vote system. 

The move came amid intense competition to attract and retain talent at the very top of the US market, where firms like Kirkland and Paul Weiss have been linked with packages above $20m for a handful of partners. 

Sources told LB that no partner joining as a lateral will be granted immediate access to the higher remuneration rungs. Instead, they will have to wait at least two years before being eligible for consideration, suggesting that, for Latham, the changes are focused on retaining, rather than attracting star performers. 

A spokesperson for Latham said: ‘Changes to the firm’s equity compensation structure were made after an in-depth review and extensive discussions and meetings in each office to ensure a transparent and thorough process. This provided the firm’s leadership with the opportunity to receive direct feedback from the partnership before moving forward. The changes to the firm’s compensation structure allows the firm to reward more partners in its year-end bonus process.’ 

Latham has seen a series of departures in London over the last year. This summer a five-partner strong leveraged finance team led by Jayanthi Sadanandan and Sam Hamilton left for Sidley. Around the same time, Milbank announced the hire of a six-strong team of finance lawyers from Latham, headed by collateralised loan obligation (CLO) partner Alex Martin. 

Earlier this year, litigation and trial partners Oliver Browne and Stuart Alford KC left for Paul Hastings. Browne’s exit from Latham came after 18 years at the firm, having most recently served as the London co-chair of the litigation and trial department. This follows the departure of restructuring and special situations partner Simon Baskerville who moved over to Willkie Farr at the end of last year. 

Less than two years ago, Latham also saw the departures of finance partners Mo Nurmohamed, Ross Anderson, Karan Chopra and Rob Davidson who left for Paul Hastings. Nurmohamed joined as co-chair of the firm’s global finance practice. 

The traffic has not gone only one way though, with the firm adding Jonathan Brownson, Joydeep Choudhuri and Prue Criddle from New York banking heavyweight Cahill Gordon & Reindel’s City office, in May this year.

Its partner remuneration overhaul comes amid intense competition at the top of the US market, prompting numerous firms to reconsider how to attract and reward their standout performers. 

Latham posted a 6.9% revenue hike to almost $5.7bn for the 2023 calendar year, with profit per equity partner up 7% to $5.52m.

LB has decided not to name the partners on super points.

elisha.juttla@legalease.co.uk

‘Private credit are the new banks’: Proskauer’s A&O and Cahill hires on the US firm’s ambitious finance push

‘Private credit are the new banks’: Proskauer’s A&O and Cahill hires on the US firm’s ambitious finance push

Speak to almost any major firm active in the finance space and you’ll hear about private credit. The industry matured as banking regulations tightened in the wake of the 2008 crash, and has surged since banks pulled back on lending after the interest rate hikes from early 2022.

According to merchant banking, global advisory, and asset management firm M Capital Group, the overall size of the private credit market has grown from $1trn four years ago to $1.7trn in 2023.

The market is big, and growing – and law firms want a piece of it.

‘A powerful thing’ – how the Mindful Business Charter is reinvigorating efforts to tackle mental health issues in law

‘A powerful thing’ – how the Mindful Business Charter is reinvigorating efforts to tackle mental health issues in law

It’s not news to anyone that the legal profession is stressful. As Michael Cavers, head of debt capital markets at CMS and chair of trustees at the Mindful Business Charter (MBC) puts it: ‘Lawyers are high achievers and perfectionists. Law firms – and our clients – have high expectations of our lawyers, and they have high expectations of themselves. We acknowledge that this can be a trigger for poor mental health.’

Launched six years ago to the day on World Mental Health Day 2018, the MBC – which takes the form of a commitment that member firms sign up to – aims to tackle the mental health issues prevalent in the industry, by raising awareness, reducing stigmas and supporting those in distress, focusing on factors such as openness, respect and the need to ‘switch off’.

Since inception, it has grown from 12 to over 130 members, with signatories now including firms such as A&O Shearman, Baker McKenzie, Clifford Chance, Linklaters, Hogan Lovells, CMS, Travers Smith and Bristows.

But City law firms would not be worth their salt if they signed up without doing their due diligence. So what is it about the MBC that appeals to so many firms?

Morwenna Scholes, head of HR at Bristows, highlights the role that the MBC plays in the firm’s wellbeing efforts: ‘‘It acts as a spotlight on the issues, and anchors the many wellbeing initiatives we had in place at Bristows – I’m delighted to say that it has found its way into our daily language, with people across the firm saying: “That’s not very MBC”.

Cavers believes the independent nature of the MBC and its popularity among law firms is a key part of the appeal. ‘It’s a framework that allows us to have conversations with other law firms, our clients, and internally – conversations that we might otherwise find a little bit awkward,’ he explains.

Signatories are quick to acknowledge the role that the MBC has played in helping to transform attitudes towards mental health. As Moira Slape, chief people officer at Travers Smith and deputy chair of trustees at the MBC puts it: ‘What I’m most proud of is the fact that the vocabulary that we have in the firm around mental health is so much more developed. People in the firm who have had their mental health challenges are braver about sharing them.’

This point is echoed by Cavers: ‘During Mental Health Week, and throughout the year, people across the firm share their stories and experience of mental health quite openly in a way that I’m absolutely convinced they wouldn’t have done not that many years ago.’

A new set of best practice guidelines were released on 24 September, which Cavers believes will give firms a chance to ‘reinvigorate their efforts’ when it comes to mental health in the workplace.

CMS recently put together a new mental health senior steering committee, which has dedicated some time to reviewing the new MBC guidelines. These include: encouraging senior leaders to role-model care for their mental health; introducing regular senior board reporting on mental health; and developing effective mechanisms to understand and identify risks to particular demographic groups and practice areas.

MBC CEO Richard Martin (pictured top) – himself a former City employment lawyer at firms including Speechly Bircham and Jones Day – believes that modern life is creating a more challenging environment for junior lawyers: ‘The working world is much more intense and demanding than when I was coming through the ranks. Some people in my generation will say, “I had to go through that so why shouldn’t you?” My response is, first of all – you didn’t. And secondly, that feels like a fairly sad way to justify difficulty.’

One issue that is frequently brought up as a factor behind rising stress levels is the salary wars currently roiling the London legal market. As Martin puts it: ‘It doesn’t take a genius to recognise that if you’re paying 180 grand, you’re going to expect quite a lot in return for that.’

Travers’ Slape echoes this sentiment: ‘The salary wars do layer on an additional level of expectation for very young people in the profession. It’s a problem that is not going away.’

She adds that the stresses of the sector are leading to a change in aspirations for young people entering the legal profession: ‘Some still want to be partners, but increasingly others don’t want to deal with the added pressures and stress that comes with partnership.’

As Layla Tow, chief marketing officer and head of business development at Bristows, sums up: ‘The MBC has given some structure and commonality of goal across the sector at leadership level. It’s kept workplace wellbeing front and centre – and that’s a powerful thing.’

How firms are supporting their staff and partners

CMS

– The establishment of a mental health and wellbeing committee that provides a safe forum for members to discuss and share ideas and feedback
– The establishment of a responsible business board committee for board-level discussions about mental health and wellbeing.
– Time Out, No Questions Asked’ programme – employees can take one month of unpaid leave per year, in addition to their regular annual leave, no questions asked
– 200+ wellbeing ambassadors, located across all UK offices, trained in mental health awareness and able to offer confidential support.

Travers Smith

– A dedicated menopause policy – including a number of paid-for benefits, to provide support to people who are experiencing symptoms associated with the perimenopause and menopause.
– Free counselling services to all employees and partners, alongside a 24/7 helpline facility
– Free membership of Calm.com, facilitating access to mindfulness and meditation sessions.
– Establishing a group of volunteers across the firm who are members of the mental health first aid aware group.
– Employee-led groups, such as the Menopause Awareness Group, Bereavement Support Group and Cancer Support Network, which provide support to those dealing with the mental impacts of the menopause and loss respectively.

Bristows

– A wellbeing consultation day, with a specialist medical provider providing 1-2-1 sessions that staff can book for a physical and mental health screening
– A massage day – staff can book an ‘above clothes’ 15-minute massage slot
– Free 1-2-1 consultations with a financial wellbeing coach – covering everything from savings, mortgages, budgeting to retirement
– A team of 30 qualified mental health first aiders across the firm – just under 10% of the staff and partners.

tom.cox@legalease.co.uk

Efforts to improve mental health in the legal profession will be among the many law firm initiatives recognised at the upcoming UK ESG Awards 2025 in London next year – for more details and how to submit, click here.