Comment: A star signing is one thing but who needs a lateral?

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Strategic recruitment DLA PiperKirkland & EllisLatham & Watkins

The worlds of business, politics and sport have since the 1970s fallen increasingly under the spell of the star individual and law has been anything but an exception. As partnership mitigates the heaviest excesses of the winner-takes-all compensation cultures seen in banking, sports and plc management, in law the star culture has manifested to a considerable extent via the partner recruitment market.

The emergence and massive expansion of this international bazaar for senior legal talent over the last 25 years has had a profound impact on the profession – often unhappily so.

Redundancy round continues as BLP latest to announce fee-earner cuts

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Restructuring Berwin Leighton Paisner

Berwin Leighton Paisner (BLP) has become the latest major UK law firm to announce job cuts as firms increasingly examine their business models in light of a sustained slump in market activity.

The top-20 City firm announced today that is has entered a redundancy consultation affecting around 58 legal staff, 44 secretarial staff and some business services staff, with a target reduction in salary of 15% in the latter group.

UK Green Investment Bank welcomes Pinsents McVicar as MacRitchie moves on

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In-house

The formal establishment of the UK Green Investment Bank (GIB) has had a domino effect on senior counsel moves as the government funded initiative’s hunt for a general counsel (GC) comes to a successful close with the hire of rated Pinsents Masons energy partner Euan McVicar.

McVicar, who specialises in the financing and development of energy projects, will join the sustainable project investment bank in late summer 2013, although no specific date has yet been given.

Legacy Herbert Smith equity partners on hook for capital boost

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Financial management Herbert Smith Freehills

Legacy Herbert Smith has become the latest UK firm to ask partners to bolster its capital levels, issuing a multi-million pound cash call in preparation for financial integration with Australia’s Freehills.

The call – thought to be worth up to around £20m – was issued in a memo sent weeks ago to all 170 equity partners. It is thought that the equity partners have been asked to contribute £2000 per equity point. Herbert Smith’s lockstep ladder runs from 43 to 100, meaning those at the top of equity, around 65, are liable to pay around £200,000 each.

DMH jumps aboard the Riverview Law bandwagon as ‘Tesco law’ challenger moves to widen service

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ABS DMH Stallard

Riverview Law will have addressed some of the criticisms of its fixed-fee legal services model with news today (13 May) that it has signed a strategic alliance with established south east law firm DMH Stallard.

A statement by Riverview Law – one of the touted and aggressively marketed of the ‘Tesco law’ challengers – said the alliance would cover a number of areas, including disputes, M&A and real estate. The alliance will see Riverview Law refer its customers to the 48-partner, 100-lawyer Brighton-based firm while allowing DMH Stallard to offer it clients the access to Riverview’s service lines. In the coming months, the two will combines to launch a range of fixed-fee services and products to the market.

All change at Shell – legal head pushes through shake-up and puts final touches to global panel review

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In-house Shell

While the trend of in-house departments bolstering their internal capability and cutting reliance on external counsel is well established, Royal Dutch Shell’s legal head Peter Rees QC has taken the logic to the extreme.

Since replacing Beat Hess as the global energy group’s legal director in January 2011 Rees has pushed through major changes, restructuring Shell’s around 750-lawyer department and kicking off a far-reaching global panel review.

Gold’s blend: Mishcons managing partner reflects on another year of trend-busting growth

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Leadership Mishcon de Reya

It’s become a familiar fixture in the annual reporting season to see Mishcon de Reya announce annual growth rates that are the envy of its peers and the London law firm hasn’t disappointed.

This week, Mishcons confirmed a turnover increase of 14% to £83.5m for 2012/13 – an increase of £10m on last year’s £73.1m. Profits per equity partner at the 300-lawyer firm are expected to top £700,000, making it one of the most profitable firms outside the City top 10. Mishcons has now grown revenues by nearly 200% since 2006/07, a performance vastly ahead of the LB100 average.

Asia round-up: Simmons, Linklaters and Clyde launch new outposts

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Asia

As Europe shows little sign of clawing its way out of the economic doldrums high growth markets continue to dominate the agenda with the announcement that firms including Linklaters, Baker & McKenzie, Simmons & Simmons and Clyde & Co are to launch new offices in the Asia Pacific region.

Over the past week Simmons announced that it is opening its fifth Asian office in Singapore, while Clyde & Co totted up its eighth presence in the region by securing a licence in Beijing. Both Linklaters and Baker & McKenzie won approval to launch in Seoul, with the latter’s claim to ‘unrivalled breadth’ in the Asia Pacific region borne out by its now 15 offices.