Legal Business

Hogan Lovells hikes NQ pay by 5% in latest round of City increases

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Salaries Hogan LovellsShearman & SterlingWhite & Case

Hogan Lovells’ UK newly-qualified (NQ) lawyers pay has risen 5%, as the firm increases junior associates’ salaries.

NQ pay jumped £3,500 to £71,500, while first year trainees’ salaries rose by £1,000 to £44,000. Second year trainees have also received a £1,000 increase to £49,000.

The changes came into effect on 1 May.

Lawyers with one year’s post-qualification experience (PQE) at Hogan Lovells have their pay determined by a merit based pay model with broad salary bands.

A firm spokesperson told Legal Business the mechanism ‘ensure[s] that we are able to take into account an individual’s performance when determining salary within the relevant salary band.’

‘In addition, our lawyers have the ability to earn significant bonuses based on chargeable hours and/or a discretionary bonus.’

Earlier this month, White & Case announced its London associates would receive a significant pay increase, with the US firm awarding its NQs a £15,000 pay hike to £105,000 for 2017.

White & Case lawyers with one year-PQE received a 16% raise from £95,000 to £110,000, while two year-PQE salaries increased by the largest percentage, up 19% to £120,000.

Shearman & Sterling were the first to announce UK pay increases this year. Shearman’s NQ pay rose by 10.5% from £95,000 to £105,000, with mid-level associates receiving a 9.5% bump in their pay from £126,000 to £138,000. The start of its senior associate salary band has risen by 5.6% to £165,000, from last year’s £156,000. 

madeleine.farman@legalease.co.uk

Legal Business

Hogan Lovells pilots radical associate assessment programme

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Associates Hogan Lovells

Hogan Lovells is piloting a new model of reviewing associates, dropping formal annual reviews in favour of a programme of continuous feedback.

The new system, called Pathways, will assess performance in quick sessions with partners, as opposed to lengthy annual reviews. The firm rolled out the scheme at the start of this year, across 500 of its 1,800 associates.

The move will see the firm also drop annual appraisal grades, which Hogan Lovells UK and Africa managing partner Susan Bright (pictured) said were ‘distracting’. Instead, associates will have quarterly briefs where they will have to seek out three pieces of feedback on different matters, as well as a less formal, yearly conversation.

Bright added: ‘We are trying to embed a culture of continuous feedback and we want it to be more consistent around the world. This forward-looking process chimes with the expectations of younger people coming into the profession, they want to know how to do things even better next time.’

One Hogan Lovells partner said: ‘Senior associates seem to like it; we asked them beforehand and they said they liked the principle. I’ve spoken to people on the pilot and they feel it’s a good, progressive way to look at development.’

Hogan Lovells global head of diversity, inclusion and wellbeing Alison Unsted said: ‘We put a lot of effort on development programmes. It is about the broader aspects of being a lawyer and is a real plus in our firm.’

The move comes as Allen & Overy confirmed last week it has been running a performance pilot scheme for the last six months, dropping traditional annual appraisals in a new approach to performance management.

The pilot scheme, focused on feedback and dialogue as tools to strengthen development and performance, has been running since October 2016 and currently involves 500 fee-earners and business staff across several practice groups and support functions in London, Singapore and the Middle East.

matthew.field@legalease.co.uk

Read more: ‘Hogan Lovells’ marriage has settled down but can the union blossom into global power couple?’

Legal Business

Hogan Lovells pilots radical associate assessment programme

Posted on |
Associates Hogan Lovells

Hogan Lovells is piloting a new model of reviewing associates, dropping formal annual reviews in favour of a programme of continuous feedback.

The new system, called Pathways, will assess performance in quick sessions with partners, as opposed to lengthy annual reviews.

Legal Business

Hogan Lovells launches global mentoring scheme in latest drive to hook fintech clients

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Innovation Hogan Lovells

In the latest in the trend of firms offering free advice to budding fintech start-ups, Hogan Lovells has launched a global fintech mentoring programme to guide clients.

The firm’s fintech mentors will operate in the UK, US, Germany and Hong Kong and offer commercial insight into launching and expanding new products as well as complimentary legal and compliance training and the use of fintech tools developed by Hogan Lovells.

Hogan Lovells head of financial institutions Rachel Kent said: ‘It is great for the industry that so many law firms are offering support to fintechs. What we offer is more than just legal advice, we help start-ups to integrate themselves into the fintech ecosystem and to fulfil their objective of bringing their product to market.’

Some of the City-based fintech mentors at the firm will include Kent, head of commercial and retail banking Emily Reid and Pinsent Masons lateral John Salmon.

The launch of the global mentoring initiative adds to the growing number of ways law firms are attempting to lure in fast growth fintech clients.

Other firms have a set aside a fund of free legal advice for start-ups they sign up. Simmons & Simmons promised four companies up to £100,000 of free advice to the start-ups, while Addleshaw Goddard and Slaughter and May raised the bar by promising up to £500,000 and £300,000 in legal mentorship respectively.

Meanwhile, in the ongoing bid for more and more law firms to act like venture capital outfits, Allen & Overy and Mishcon de Reya have launched technology competitions for tech start-ups to join firm-run incubators, with the law firms housing the small businesses and offering them advice, office space and mentoring.

matthew.field@legalease.co.uk

Legal Business

Adviser review: Clifford Chance, Hogan Lovells and Ashurst lose out on FCA panel

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Adviser reviews AshurstClifford ChanceHogan Lovells

RPC, Norton Rose Fulbright (NRF) and Squire Patton Boggs have won panel spots at the expense of rival City outfits with places on the Financial Conduct Authority’s (FCA) roster of skilled advisers.

Clifford Chance (CC), Hogan Lovells and Ashurst all lost out on the panel, which was finalised on 1 April.

NRF won places on three lots to advise on client assets, business conduct and financial crime. Squires won a place for advice on financial crime and RPC won a role to act on business conduct matters.

CC had previously held positions in four lots on the panel, for client assets, governance controls and risk frameworks, financial crime and deposit takers.

A total of six law firms were appointed to the panel which includes accountants, financial and public relations advisers. DLA Piper, Eversheds Sutherland, and Macfarlanes all retained places, while RPC, Squires and NRF were the new additions.

One City partner at a panel firm said: ‘The FCA looks at quality and quantity, experience, pricing and project management capabilities. It’s a quite a competitive process.’

The FCA’s last panel was revamped in 2013, with the current roster set to until 2021.

CC has recently acted against the FCA in the so-called ‘London Whale’ case advising executive Achilles Marcis in a recent Supreme Court hearing.

Other recent adviser reviews have seen the Crown Commercial Services legal panel trimmed back, with its roster cut from 40 firms to 18. Meanwhile, the government has launched a tender process for a £90m finance panel.

matthew.field@legalease.co.uk

Legal Business

Hogan Lovells makes major Silicon Valley play with Weil Gotshal corporate team

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Strategic recruitment Hogan LovellsWeil, Gotshal & Manges

While the transatlantic firm has repeatedly stated its aim to bulk out its corporate weight, Hogan Lovells is expected to land a veteran team of former Dewey & LeBoeuf partners to its Silicon Valley office following a partnership vote.

Hogan Lovells is set to take on Richard Climan and a team of three other corporate partners from Weil, Gotshal & Manges, a heavyweight team that previously held talks with Greenberg Traurig and Reed Smith during their move from a collapsing Dewey in 2012. Freshfields Bruckhaus Deringer were even reportedly tempted to launch on the West Coast at the prospect of signing the team.

However Climan is now understood to be moving again, along with partners Keith Flaum, John Brockland and Jane Ross.

Climan joined Dewey in 2011 from Fulbright & Jaworski and was previously at Cooley until 2009.

Climan’s practice focuses on M&A, hostile takeovers, defensive strategies and leveraged buyouts, with specialities in the technology sector and in life sciences.

Recent clients have included Oracle on its acquisition of Responsys for $1.5bn and acting for Illumina on takeover defence against Roche in a $6.7bn bid.

While the rainmaking team are on significant pay packets, Hogan Lovells pay system has a degree of flexibility for bringing in high-profile hires, with an equity spread of around 10:1 and a 15% bonus pool.

Hogan Lovells has made clear its ambitions to reinforce its corporate offering since its 2010 merger, with early aims to bulk out its transactional capacity in London and New York.

The team move would be the most significant corporate hire for Hogan Lovells in recent years. The firm recently added three life sciences M&A specialists into its Philadelphia office, Steve Abrams, Rachael Bushey and John Duke, all from Pepper Hamilton.

Weil and Hogan Lovells both declined to comment.

matthew.field@legalease.co.uk

Legal Business

News in brief – March 2017

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Legal mergers Eversheds SutherlandFieldfisherFreshfields Bruckhaus DeringerHogan Lovells

FRESHFIELDS SIGNS 20-YEAR LEASE ON NEW HQ

Freshfields Bruckhaus Deringer has signed a pre-let agreement on a 20-year lease in February to move from existing premises in Fleet Street to 100 Bishopsgate in 2021. The Magic Circle firm will reduce its London real estate by roughly a third when it takes out 255,000 sq ft of office space.

 

Legal Business

Paris plays: Reed Smith hires eight lawyers from Winston, as Hogan Lovells and Olswang partner pair open office for Ogletree

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Europe Hogan LovellsReed Smith

In a busy week for Paris team hires, Reed Smith has taken on three partners from Winston & Strawn, while US firm Ogletree Deakins has launched its first French office with partner hires from Hogan Lovells and Olswang.

Reed Smith announced today (2 March) that it has hired an eight-lawyer team in Paris. The move includes three partners, Jean-Pierre Collet, Florence Bilger and David Colin, alongside three counsel, one associate and one jurist all joining from Winston & Strawn.

This brings Reed Smith’s Paris office to 66 lawyers, including 22 partners, and expands the Paris tax practice from eight to 16 lawyers. Collet was Winston’s head of tax in Paris, while Bilger and Colin focus on investment funds and entrepreneurs, providing tax advice on corporate transactions, as well as disputes and general tax advice.

The move comes after Reed Smith hired 18 lawyers from King & Wood Mallesons (KWM) in January this year. The firm rebuilt its ranks in Paris after last year it lost several partners in that office, including corporate partners Lucas D’orgeval and Emmanuel Vergnaud, now co-founders of Volt Associes, Alexandre Tron and Stephane Letranchant who also left later in the year to join Volt, and Anker Sorensen who left to join De Gaulle Fleurance & Associates.

‘Following on from our recent hires across corporate, tax and private equity from KWM, these additions of talented French lawyers help us provide a truly cross border transactional service to our clients,’ commented Tamara Box, managing partner for Europe and the Middle East (pictured).

Meanwhile, Olswang and Hogan Lovells partners Karine Audouze and Jean-Marc Albiol will open a third European office for US law firm Ogletree Deakins, alongside a team of 11 lawyers and staff. The firm’s presence also includes Berlin and London.

Audouze, an employment lawyer, will be the office managing partner, and was at Cleary Gottlieb Steen & Hamilton before joining Olswang. The launch comes as Olswang’s Paris office was closed this week following the three-way merger announced in September. In 2015 the office turned over £5m, and lawyers from the office had been without permanent accommodation after the lease expired at the start of this year. Several other lawyers have already left, including tax partner Julien Monsenego, who joined Gowling WLG, while office head Guillaume Kessler joined Orrick, Herrington & Sutcliffe.

georgiana.tudor@legalease.co.uk

Legal Business

‘Enduring strength’: HSF, BLP and Mayer Brown advise as £1bn offer made for the Cheesegrater

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Property Berwin Leighton PaisnerHogan LovellsMayer Brown

Herbert Smith Freehills (HSF), Berwin Leighton Paisner (BLP) and Mayer Brown are leading as Chinese Investment Group CC Land is in advanced talks to buy one of London’s landmark buildings, the Leadenhall building (known as the Cheesegrater) for over £1bn.

If completed, the deal will be one of the largest Chinese purchases of UK real estate.

The HSF team is advising joint owner Oxford Properties with a team led by real estate partner Richard Forsdyke.

Mayer Brown is acting for the other 50% owner, British Land, through real estate partners Jeremy Clay, Caroline Humble and corporate partner Richard Page.

BLP team is advising the potential buyer, CC Land, with a team led by head of real estate Chris de Pury.

Forsdyke said: ‘We are delighted to have helped Oxford over the last five years on its participation in this venture. This sale is important and shows the enduring strength of the central London business district real estate.’

HSF also advised Oxford Properties in 2011, when the £340m development of the Cheesegrater started, while SJ Berwin advised British Land.

In 2015, British Land unveiled its first panel, listing firms including Freshfields Bruckhaus Deringer, Addleshaw Goddard, HSF, Jones Day, King & Wood Mallesons, Mayer Brown and Simmons & Simmons as advisers. Last month, it added also Hogan Lovells to its roster of firms.

georgiana.tudor@legalease.co.uk

Legal Business

Trainee retention: HSF and Hogan Lovells post rates as Macfarlanes joins top of the class at 100%

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Trainee retention Herbert Smith FreehillsHogan LovellsMacfarlanes

Herbert Smith Freehills (HSF) has posted a spring trainee retention rate of 77%, compared to a rate of 94% this time last year when the firm recorded its third straight score of more than 90%.

HSF held on to 27 applicants which joined the firm as newly-qualified (NQ) lawyers, as 28 out of 33 applicants received offers, from a cohort of 35.

Hogan Lovells posted an 79% retention rate this spring. The firm had 29 qualifiers, 26 applied for the role and 23 were made offers, which were all accepted. This is similar to Hogan Lovells’ last retention round in August 2016 when its rate was 80%.

Meanwhile, Macfarlanes joined Mayer Brown and Slaughter and May as firms with 100% spring retention rates. Macfarlanes offered an NQ contract to all six trainees qualifying this March.

Macfarlanes partner and head of graduate recruitment Sean Lavin said: ‘It is always our aim to find roles for all our trainees upon qualification and we are obviously delighted to have been able to offer 100% retention for our March 2017 intake.’

Other firms to announce rates so far this spring include White & Case, which retained 88% of trainees, and Trowers & Hamlins which posted a rate of 92%. At the bottom of the table so far are Berwin Leighton Paisner (BLP) and Clifford Chance (CC) with 55% and 67% respectively. BLP only retained 11 out of 20 trainees, while CC kept 31 out of its 46 applicants.

georgiana.tudor@legalease.co.uk