Clifford Chance news, updates and analysis | Page 24 of 32

Magic Circle firm Clifford Chance continues to overhaul its corporate governance structure and today (31 July) announced that global finance chief Mark Campbell will step down from his leadership position alongside head of the global capital markets practice David Dunnigan, to be replaced by London-based partners Rob Lee and Adrian Cartwright respectively.

Having both been in their roles since 2002, the firm said that Campbell and Dunnigan were at the end of their elected terms in office but will remain with the firm and ‘play an active role on client relationships’.

Other changes includes Dusseldorf partner Peter Dieners succeeding Andreas Dietzel as regional managing partner for Germany.

A firm vote this month saw a shakeup of its core governance structure to create a slimmed down 12-strong executive leadership group in place of its 16-member executive committee. Set to take effect on 1 September 2014 and chaired by managing partner Matthew Layton, the group will include three new global business units to cover financial markets, M&A and corporate transactions, and risk management and disputes.

Rob Lee will assume the global business unit leadership role for financial markets, while the firm’s current global head of corporate Guy Norman will take the global business unit leadership role for global M&A and corporate transactions. Longstanding global disputes chief Jeremy Sandelson, meanwhile, has been appointed global business unit leader for risk management and disputes.

Partners Evan Cohen and Peter Charlton remain in their positions as regional managing partners for the Americas and Asia Pacific respectively while Yves Wehrli will take the regional managing partner role for Continental Europe.

Further positions on the reformed executive group includes executive partner and general counsel Chris Perrin, global head of people and talent Laura King, chief financial officer Stephen Purse, and chief operating officer Amanda Burton.

On the restructure, Layton said: ‘At the heart of our agenda is an understanding of the significant shifts taking place in our clients’ worlds and in our own sector. Our energies will be focused on ensuring that we interpret what those shifts mean for our strategy, for the development of our client offer and for how we operate. We have a fantastic firm and we are absolutely committed to ensuring that clients experience the best of Clifford Chance every time they work with us.’

Sarah.downey@legalease.co.uk

As part of the first major changes to its corporate governance structure in 14 years Clifford Chance yesterday (24 July) voted to dispense with regional and practice head elections in favour of appointment by managing partner Matthew Layton.

Long having stood out for its highly democratic but time consuming and at times disruptive granular election processes, the Magic Circle firm previously appointed regional and practice area heads only after a soundings process, nominations, hustings and votes.

The new streamlined process, ushered in as part of Matthew Layton’s manifesto to bring the 2,945-lawyer firm’s structure in line with client needs and changes to the market, will still include an election process for the role of managing partner and members of the partnership council including the senior partner.

CC will also continue to vote on any investments made by the firm, partner promotions and hires.

Speaking earlier to Legal Business, Layton said: ‘I have made proposals to the partnership to consult and look at the current structure. We need to be in the right shape for our clients as the market changes; we must be flexible and adaptable to change.’

Further changes to the firm’s governance yesterday saw the partnership vote in a new 12-strong executive leadership group and the creation of three global business units to cover financial markets; M&A and corporate transactions; and risk management and disputes.

Chaired by global managing partner Matthew Layton, the slimmed-down executive group will take responsibility for setting and implementing the City giant’s strategy.

Members of the new executive group will include the incoming heads of the global business units and three regional managing partners (RMP) for the Americas; and Asia Pacific and the newly created role of Continental Europe managing partner. The inaugural executive group will also include the regional head for Germany, though London and Middle Eastern regional managing partners will not sit on the group.

The appointments of the regional managing partners are, however, expected to be subject to a ‘soundings’ process, meaning the RMP line-up may change. The firm has yet to appoint heads for the global business units.

Further places on the reformed core leadership team are to be awarded to the executive partner and general counsel (Chris Perrin), global head of people and talent (Laura King), the chief financial officer (Stephen Purse) and the chief operating officer (Amanda Burton).

The new structure replaces the Magic Circle firm’s 16-strong executive committee, which had a broader coverage of practice heads including London regional managing partner David Bickerton, head of finance Mark Campbell, head of corporate Guy Norman and global head of disputes Jeremy Sandelson.

The newly-created GBUs, meanwhile, are oriented around the firm’s clients and are aligned with its six practice areas, which will remain intact. They will be headed by representatives drawn from across the practice areas and regions, ‘to maximise collaboration and integration of expertise from across the firm’.

Sarah.downey@legalease.co.uk

Clifford Chance (CC) has today (24 July) announced a raft of changes to its governance structure, including the establishment of a new 12-strong executive leadership group and the creation of three global business units to cover financial markets; M&A and corporate transactions; and risk management and disputes.

Chaired by global managing partner Matthew Layton, the slimmed-down executive group will take responsibility for setting and implementing the City giant’s strategy.

Members of the new executive group will include the incoming heads of the global business units and three regional managing partners (RMP) for the Americas; and Asia Pacific and the newly created role of Continental Europe managing partner. The inaugural executive group will also include the regional head for Germany, though London and Middle Eastern regional managing partners will not sit on the group.

A spokesperson for the firm said: ‘The RMP Germany will have a seat on the [executive leadership group] by invitation not as a right. Given the German market faces a number of specific challenges and opportunities, and given its strategic importance, it makes sense now for Germany to sit on the [leadership team]. This will be kept under review.’

The appointments of the regional managing partners are, however, expected to be subject to a ‘soundings’ process, meaning the RMP line-up may change. The firm has yet to appoint heads for the global business units.

Further places on the reformed core leadership team are to be awarded to the executive partner and general counsel (Chris Perrin), global head of people and talent (Laura King), the chief financial officer (Stephen Purse) and the chief operating officer (Amanda Burton).

The new structure replaces the Magic Circle firm’s 16-strong executive committee, which had a broader coverage of practice heads including London regional managing partner David Bickerton, head of finance Mark Campbell, head of corporate Guy Norman and global head of disputes Jeremy Sandelson.

The newly-created GBUs, meanwhile, are oriented around the firm’s clients and are aligned with its six practice areas, which will remain intact. They will be headed by representatives drawn from across the practice areas and regions, ‘to maximise collaboration and integration of expertise from across the firm’.

The firm said the revamp was made with a view to ensuring that its ‘leadership and management structures reflect the needs of a fast-evolving global market place’.

The new structure, which was approved by a vote of the partners, will take effect on 1 September 2014.

CC’s partnership council will continue its current supervisory role, reviewing the effectiveness of the firm’s leadership and management and ensuring that appointments to leadership roles in the firm are ‘handled effectively and with due regard to the interests of the partnership’.

Layton said: ‘This simplified leadership group reflects the fact that our firm, our clients and the market have changed significantly since 2000 when the current governance was put in place, just after our mergers. I see huge potential for Clifford Chance in this new landscape. Our great strength is the ability to provide clients with seamless access to the great depth and range of expertise around the globe, and across sectors, product and practice areas. I look forward to working with the ELG and the whole of the partnership to ensure that’s exactly what we deliver to every client with every interaction.’

Sarah.downey@legalease.co.uk

The past week has seen Clifford Chance emerge as the star performer among its Magic Circle rivals, with a 7% rise in revenues to £1.36bn. Legal Business asked newly-appointed global managing partner Matthew Layton about the 2,945-lawyer firm’s plans for international expansion and his ambitions over his first four-year term.

What are your expansion plans?

For virtually every business regulatory and risk is now a global issue. The financial regulatory environment may have attracted the lion’s share of the headlines – but risk and reputation are right at the top of the agenda for all our clients. Proactive management of risk is a priority. This is an area of increasing activity for us. In Asia Pac we are building key relationships with the major players in those markets and our commitment to long term investment means we have the reputational capital established from over 30 years in the region. We are also committed to building our business in the US and I would like to see our income from the US representing a greater proportion of the firm’s total revenues.

The firm has seen a number of recent partner departures, particularly corporate lawyers to US firms. What will the firm do to combat that?

We are and need to remain an attractive destination for the very best lawyers. One element is, of course, the need to be competitive in terms of compensation. That’s part of my vision and strategy. But culture and the high quality of the opportunities and career progression, clients and the work are also important to people who want to be part of a successful and ambitious team. There are great opportunities and career prospects for young lawyers here. There’s no aspect of complacency about that here.

What key strengths are needed to manage the firm?

It’s important to maintain and develop an inclusive, collegiate culture throughout the firm. There’s lots written about law firm management but it’s about how you inspire people to work together to deliver that great service to our clients – time and time again. That’s a key part of my role and I’m looking forward to working with and supporting the entire team – both the young and the more experienced alike – during my time as managing partner.

You were singled out by CC partners as a very popular candidate when you ran for election last year. How much was it to do with that and how much of your success was down to the specifics of your election manifesto?

All the candidates were strong and there was huge alignment and agreement in what Andrew [Carnegie], Yves [Wehrli] and I proposed, to be honest. The elections weren’t a hostile event – the hustings were a lot of fun and provided a great opportunity for an open discussion across the partnership. But in the end, I am honoured to be trusted with the role and I’m fortunate to have had such opportunities throughout my time at the firm and to share in its successes over the last three decades.

There’s been speculation that you want to move to an all equity partnership…

I didn’t actually say we should move to an all equity partnership. I said we should always consider the options. I can see some advantages to it – equally there are some benefits in having non-equity partners. I would always encourage us to review and debate this and other relevant topics. As you will know, I have made proposals to the partnership to consult and look at the current structure. We need to be in the right shape for our clients as the market changes; we must be flexible and adaptable to change.

What do you want to achieve during your term?

Technological development should be right at the forefront of the business of law firms too, and building a sustainable geographically balanced firm for the future. The key benchmarks are growth in the Americas; further growth in Asia; and becoming the law firm of choice for the leading global and regional businesses and the destination of choice for the most talented lawyers.

I don’t set an agenda to make Clifford Chance the most profitable firm but to make long term investments for a sustainable future. And being agile and flexible, and having that willingness to experiment – that culture needs to be enshrined across the partnership.

Sarah.downey@legalease.co.uk