Legal Business

CC bumps starting pay to £63,500 with bonuses giving junior associates chance to earn over £100,000

legal-business-default

Despite generally gloomy market conditions there were renewed signs of underlying confidence at top London firms with Clifford Chance (CC) joining its peers today (4 June) in announcing rises in associate and trainee pay and bonuses for the year ahead.

The firm is the last of the Magic Circle to announce pay changes across the board, adding an extra £2,000 to newly-qualified (NQ) lawyers’ pay packets, up to £63,500 from last year’s £61,500, a rise of 3%.

The next largest rise was made to second-year post-qualified experience (PQE) lawyers, who will take home £1,900 more, totalling £78,200. The firm also increased first-year PQE pay by £500 to £69,500 and third-year PQE by £800 to £87,800.

CC was the only City firm to detail its associate bonuses for 2013/14, awarding maximum total compensation of £76,200 to NQ lawyers and £90,350, £101,660 and £114,140 for first, second and third–year associates respectively. Trainee pay also rose to match its peers, increasing first and second-year salaries by £1,000 to £39,000 and £44,000.

The firm’s increase to NQ pay puts it just behind Freshfields Bruckhaus Deringer, which is offering NQ associates £65,000-£72,500, and Linklaters on £64,000. Slaughter and May is offering NQ associates £63,000 while Allen & Overy currently pays £61,500 after taking the decision to freeze base salaries at last year’s level.

CC London managing partner David Bickerton said: ‘The London office has had another successful year. We continue to win great mandates from our clients and, again, have been more highly ranked by the directories than any other firm in the UK, Europe and globally.

‘It’s important to invest in our future trainees and we hope that by providing enhanced maintenance support, those individuals will be able to focus fully on their studies and develop the skills to become the outstanding lawyers that we require for our business. This is part of our overall commitment to breaking down any perceived barriers to entering our profession.’

The firm also substantially raised its maintenance grants for future trainees on its legal practice course (LPC) and graduate diploma in law (GDL), hiking the LPC grant from £4,900 to £7,000 while the latter rises from £5,000 to £7,000.

CC’s unusual decision to set out its bonus packages in detail will be seen as part of a bid to position itself as a choice recruiter of aspiring lawyers against City peers and US rivals.

Despite a run of job cuts at major UK law firms in recent weeks, the Magic Circle has so far avoided such measures and this year announced the first notable rises in underlying pay rates for associates since the boom. Despite this, real term pay for junior lawyers in the City has generally fallen by more than 15% since 2008 due to a combination of inflation and cuts made in 2009 by many firms to associate pay bands.

 

Jaishree.Kalia@legalease.co.uk

Legal Business

Lateral push sees key UK players switch to US firms

legal-business-default

US firms in the City continue to demonstrate their appetite for big name lateral hires from leading UK firms, with Latham & Watkins and Reed Smith picking up experienced partners from Clifford Chance (CC) recently, while Quinn Emanuel Urquhart & Sullivan announced the hire of disputes expert Ted Greeno from Herbert Smith Freehills (HSF).

Latham & Watkins’ acquisition of CC’s global head of private equity, David Walker, particularly caught the eye last month. This is one of the most significant blows to CC’s corporate practice since the departure of Adam Signy to Simpson Thacher & Bartlett in 2009.

Legal Business

HSF ends exclusive association in Saudi Arabia

legal-business-default

Herbert Smith Freehills (HSF) is to end its five-year exclusive tie-up with Saudi Arabia’s Al-Ghazzawi Professional Association (GPA), as international activity in the region shows no sign of slowing down.

The two firms’ association formally ends on 1 August, but HSF will continue to co-operate with GPA on a non-exclusive basis. Neither firm has plans to enter into another exclusive association at this time.

Legal Business

HSF becomes third UK firm to open its doors in Seoul

legal-business-default

Herbert Smith Freehills (HSF) opened in Seoul last month, becoming the third UK firm to open in Korea, after Clifford Chance and DLA Piper.

The office will be co-headed by London disputes partner Tony Dymond and Singapore corporate partner Lewis McDonald, both of whom are relocating to the region.

The Seoul office will primarily focus on outbound work. It opens with two partners, three associates and a paralegal.

Legal Business

Clifford Chance and Linklaters make most of their partner promotions in Europe

legal-business-default

Partner promotions continue apace with Magic Circle firms Clifford Chance (CC) and Linklaters the latest to announce their numbers, the majority of which are in Europe.

CC welcomed 20 new lawyers to its partnership, with three-quarters of those promotions spread across Europe, while Linklaters promoted 24 partners, of which 19 were in Europe.

CC announced five London based promotions, namely corporate lawyers Tom Evans and Nick Hughes, finance partners Peter Dahlen and Oliver Hipperson and litigator Maxine Mossman.

Half of CC’s total promotions were spread across the firm’s central European offices with three in Paris, two each in Madrid and Frankfurt and one apiece in Düsseldorf, Milan and Amsterdam. Three lawyers were made up in Asia, one in the US and one in Saudi Arabia.

The number of promotions is down from 27 in 2012, bringing the total to 589 partners.

CC managing partner David Childs said: ‘Many of this year’s new partners have demonstrated a strong commitment to supporting the growth of the firm’s offering internationally, including leading development efforts in a wide range of markets beyond their “home” office, into Scandinavia, the Middle East, Latin America and South East Asia.

‘This international mindset is at the heart of our firm’s culture and it is very pleasing to see our principles so clearly embodied in these individuals.’

Linklaters, meanwhile elected six new London partners – Stuart Boyd and Savi Hebbur in mainstream corporate, litigators Ben Carroll and Harriet Ellis, Edward Aldred in banking and Timothy Lowe in tax.

In Europe promotions were spread across Paris, Düsseldorf, Frankfurt, Brussels, Amsterdam, Madrid, Warsaw, Lisbon and Moscow. The remaining five were in Beijing, Hong Kong and Dubai, with two in New York.

Linklaters’ chairman and senior partner Robert Elliott said: ‘These promotions underline our commitment to invest in our global practices in order to enhance the breadth and depth of expertise we offer our clients.’

Promotions at both firms will take effect from 1 May 2013.

Meanwhile, Lawrence Graham has announced three partner promotions – the same as last year – with two in London and one in Monaco. Since March 2012 nine new partners have joined the firm from Bird & Bird, Herbert Smith, Linklaters and Stephenson Harwood. Most recently private capital partner Zac Lucas joined the Singapore office in February from Ogier.

Elsewhere Watson Farley & Williams has promoted four partners, Jahnavi Ramachandran and Kavita Shah in asset finance in London, and Ahmad Khonsari and Daniel Marhewka in the corporate department in Munich.

jaishree.kalia@legalease.co.uk

Legal Business

Dentons wins spot as Network Rail announces panel revamp

legal-business-default

Network Rail has cut its legal roster from 12 to five core firms in a review that sees newly merged firm Dentons appointed to the panel.

Other firms awarded full service contracts for work in England and Wales are Bond Pearce (Bond Dickinson on 1 May), Eversheds and Addleshaw Goddard. Maclay Murray & Spens has been awarded the contract for Scottish law matters. All four were reappointed from the previous panel.

The firms will provide legal support to Network Rail’s entire business but with a particular focus on corporate projects, commercial contracts, dispute resolution, employment and property work.

Network Rail has also awarded three further contracts for work in specialist areas – to Clifford Chance for treasury and capital markets work; Kennedys for health & safety and regulatory enforcement; and Winckworth Sherwood for public law matters.

As of April 2012 Network Rail had a legal spend of around £15m per year.

Firms not re-appointed to the full panel are Simmons & Simmons, Berrymans Lace Mawer, Bircham Dyson Bell, MacRoberts, Schofield Sweeney and Winckworth Sherwood.

The tender, which was kicked off at a launch presentation in December, was put out to 20 firms, with a further seven unsuccessful.

The rail company’s review of its advisers, led by group general counsel Suzanne Wise, has centred on developing stronger relationships with its advisers and obtaining better value services.

Wise said: ‘This has not been about dissatisfaction with any of the company’s current suppliers. The decision to significantly reduce the size of the panel will drive efficiencies in line with the company’s business objectives. I wanted to develop deeper, more strategic relationships with fewer firms to drive better value and a more integrated approach to our work.’

A statement issued by Network Rail further explained: ‘Network Rail had found its legal spend spread too thinly across a panel of 12 firms making it difficult to develop a close strategic relationship whilst at the same time eroding the company’s ability to gain maximum benefit from the value added offered by many law firms in the market.’

Before joining Network Rail, Wise was general counsel and company secretary of Premier Foods, where she set up the FTSE 100 company’s first formal panel, appointing Eversheds, Slaughter and May and Wragge & Co.

She joined Network Rail in January 2012, with a brief to complete a wholesale review of the strategic objectives of the legal team, including a strategic vision for legal services.

caroline.hill@legalease.co.uk

Legal Business

Clifford Chance partner takes up governance role at Deutsche Bank

legal-business-default

Deutsche Bank today (17 April) announced the appointment of Clifford Chance partner Daniela Weber-Rey as chief governance officer and deputy global head compliance in its Frankfurt office.

Weber-Rey, who is a long-serving corporate partner at Clifford Chance, will join Europe’s biggest bank by assets in June, overseeing corporate governance globally and acting as adviser to the management board on the governance structures and processes of the bank.

She will report to Deutsche Bank management board and group executive committee member Stephan Leithner in her governance role and serve as deputy to compliance chief Andrew Procter.

Weber-Rey has been a partner at Clifford Chance and legacy firm Pünder Volhard Weber & Axster for over 20 years. She was also a member of the Magic Circle firm’s partnership council until earlier this year and continues to be a member of the Commission of the German Corporate Governance Code. She regularly advises German and multinational corporates and banks on corporate governance and general boardroom issues.

According to a statement from Deutsche, Weber-Rey’s hire forms an ‘important component’ of the bank’s cultural change initiative in ensuring good decision-making and clear accountabilities across the bank.

Leithner said: ‘We are pleased that Daniela Weber-Rey will be joining Deutsche Bank. Staying at the forefront on governance structures and processes, an area where the bank is traditionally strong, will be critical in the context of significant market and regulatory change.’

Weber-Rey becomes the second partner from a Magic Circle firm in Germany to announce a role in a financial institution this week. Former Freshfields Bruckhaus Deringer senior partner Konstantin Mettenheimer is set to join asset manager Edmond de Rothschild Group this summer as chairman for the Franco-Swiss bank’s businesses in Germany, including its asset management, private banking and advisory services. He will be based in Frankfurt.

francesca.fanshawe@legalease.co.uk

Legal Business

Stepping Up – Clifford Chance’s corporate revolution

legal-business-default

Clifford Chance’s corporate practice had a stonking year in 2012, rocketing up the league tables and scoring roles on four of the ten largest M&A deals globally. Little wonder Matthew Layton was handed a second four-year term at the helm. Vive la revolution.

By anyone’s measure, Clifford Chance (CC) had a stupendous year for M&A work in 2012, appearing on four of the ten largest deals that took place worldwide and ranking second at year-end by deal value, up from 22nd two years ago. According to mergermarket, CC worked on 197 announced deals with a combined value of £156bn, nudging ahead of Freshfields Bruckhaus Deringer and relegating Linklaters to fifth in the league tables.

Legal Business

All hail the comeback kings

legal-business-default

Two features this month focus on firms that have dusted themselves down and have come back fighting. For markedly different reasons, both Clifford Chance and Bristows have returned from positions of perceived weakness to enjoy something of a renaissance post-economic crisis.

In 2012 Clifford Chance was one of the stronger performers in a UK Global Elite that has been pretty beleaguered of late. Its performance in the most recent LB100 outstripped its rivals, posting a 7% growth in turnover and a 9% rise in profit per lawyer. But in particular, its corporate practice enjoyed a very strong 2012, topping mergermarket’s M&A tables for deals by value right up until the end of the year until Skadden, Arps, Slate, Meagher & Flom posted a trio of high-value deals in December.

Legal Business

Magic Circle reigns but cracks are there

legal-business-default

In the same way the sports media has speculated long and hard these past couple of years on the ‘demise’ of Tiger Woods, much has also been said about the Magic Circle also losing its aura of invincibility since the global financial crisis.

The Magic Circle’s relentless pursuit of domination has inspired awe over the last two decades but at the same time has drawn brickbats when things have gone awry. It is all too easy to build something up only to knock it down.