Legal Business

‘We are no longer just making up males in London’: Linklaters increases female partner count to ten in 27-strong promotions round

Linklaters has increased the size of its promotions round for the fifth year in a row, adding 27 lawyers to its partnership.

Taking effect in May, 37% of the new partners elected are women, with the firm exceeding its 30% target after a disappointing male to female ratio in last year’s 26-strong round .

The firm’s Silk Street headquarters saw the largest intake, with 10 made up in the London team across corporate, banking, competition and disputes.

Asia was a close second, reflecting the firm’s focus in expanding in the region: nine lawyers were made up in the firm’s Hong Kong, Tokyo and Seoul outposts, with one promoted in London as part of the India team.

‘Notwithstanding what’s going on in the world, 27 is a good number, which shows Linklaters is still investing in its people,’ senior partner Charlie Jacobs told Legal Business. ‘I am pleased we are being bullish, I am very pleased with the diversity, both in practice areas and gender. We are no longer just making up males in London, this is much more diverse. This is the sort of talent we have globally.’

The mainstream corporate and banking groups had the largest intake globally, at seven and six respectively, while disputes stood at four.

In the City, Nicholas Edwards, Christopher Boycott, Jonathan Sadler and Rachel Barrett were promoted in the corporate team. The London banking team had only one new partner in Chris Medley, while Julia Dixon and Sebastian Barling were promoted in the financial regulatory group. Teresa Laboucarie-Polak was made up in dispute resolution, Sarah Lindley in tax, Rachel Hetherington in competition.

The continental European partnership took on six new members in Frankfurt, Brussels, Milan, Lisbon, Luxembourg and Warsaw. The US only saw two, both in the New York banking practice.

Marco.cillario@legalbusiness.co.uk

Linklaters partner promotions in full:

Teresa Laboucarie-Polak, dispute resolution, London

Xavier Taton, dispute resolution, Brussels

Ricardo Guimarães, dispute resolution, Lisbon

Sushil Jacob, corporate/India team in London

Chris Yip, corporate, Hong Kong

Marcin Schulz, corporate, Warsaw

Nicholas Edwards, corporate, London

Rachel Hetherington, competition/antitrust, London

Christopher Boycott, corporate, London

Jonathan Sadler, corporate, London

Rachel Barrett, corporate, London

Sarah Lindley, tax, London

Rémy Bonneau, corporate, Luxembourg

Penelope Jensen, banking, New York

Eamon Nolan, banking, New York

Maggie Ng, banking, Hong Kong

Stephen Song, capital markets, Hong Kong

Gloria Cheung, capital markets, Hong Kong

Hirofumi Taba, projects, Tokyo

Joo Hee Lee, projects, Seoul

Alexander Schlee, capital markets, Frankfurt

Chris Medley, banking, London

James Warboys, banking, London

Julia Dixon, financial regulatory group, London

Sebastian Barling, financial regulatory practice, London

Ettore Consalvi, banking, Milan

Denise Fung, dispute resolution, Hong Kong

Legal Business

Linklaters offers top-of-equity deal to recruit Cleary rainmaker Casati ahead of his 70th birthday

In one of the most significant senior moves in the Italian market in recent years, Linklaters has hired Cleary Gottlieb Steen & Hamilton veteran rainmaker Roberto Casati.

In a bid by the City giant to expand beyond its finance and capital markets focus in the country into mainstream corporate, Linklaters has drafted a waiver to its partnership terms to allow the 69-year-old to join the firm at the top of its equity ladder, a deal worth around £2m annually. Casati is expected to stay on for at least five years.

Casati, who quit Allen & Overy in 2004 for Cleary Gottlieb, is regarded as one of Italy’s leading corporate lawyers in a market still dominated by elder statesmen with decades-long connections with the country’s top companies. Casati’s recruitment was credited with driving much of the success of the US firm in Italy. Clients he has previously acted for include Petronas, ABN AMRO, Mediobanca, Qatar Holding, Inter Milan, Whirlpool Corporation, HanesBrands and Corrado Passera.

Yet Cleary Gottlieb would not allow for any exception to its rule of retirement at 70, meaning Casati saw joining Linklaters as an opportunity to continue.

The move is a surprise for Linklaters, a firm that has long had a reputation for managing out older partners in its City heartlands. The firm is nevertheless regarded as having achieved more momentum in its Continental European practice in recent years, with its Italian practice building a strong reputation for banking and securities work.

marco.cillario@legalease.co.uk

For more on the Italian legal market see our recent column, ‘Letter from Milan’ (£)

Legal Business

#MeToo spotlight still shines on law as former Linklaters partner jailed for sexual assault

A court in Munich has sentenced a former Linklaters partner to three years and three months in prison for sexual assaulting a student at a firm party several years ago.

Tax partner Thomas Elser assaulted an intern after Linklaters’ Oktoberfest party in September 2014 before a former litigation partner of the firm, Laurenz Schmitt, intervened and punched him in the face.

Schmitt reported Elser to the firm the following day and Linklaters started an internal investigation which concluded with both partners leaving the firm with immediate effect.

The victim of the assault did not wish to press any charges and wanted no part in criminal proceedings, a spokesperson for the firm said. But the two partners involved subsequently reported each other to the police.

Schmitt himself received a seven-month suspended sentence for bodily harm (Körperverletzung) last year, while Elser’s sentence for his offence (Vergewaltigung und vorsätzlicher Körperverletzung) was handed down last week (9 February).

Linklaters’ spokesperson added: ‘We have always been mindful that there is a young student at the centre of this case. That concern has guided our behaviour and priorities throughout.’ They also pointed to the fact that ‘the judge was clear in her summing up that Linklaters carried out its internal investigation appropriately’.

Linklaters then-German senior partner Carl-Peter Feick, former firmwide managing partner Robert Elliot and litigation partner Christa Band conducted the investigation. A number of Linklaters partners, including Band, were called as witnesses during the trial.

The news comes as sexual harassment remains a live topic for the legal profession, although the spokesperson was keen to point out that Linklaters behaved ‘in a very different way’ to other firms criticised recently.

Two weeks ago it emerged that an experienced Baker McKenzie partner had been allowed to take on leadership roles at the firm despite accusations of sexually assaulting an associate . The partner in question has subsequently left the firm.

In January, it emerged that a Dentons partner had been put on a leave of absence while the firm investigates reports of sexual misconduct while last week the fallout from the Presidents Club exposé revealed that a number of senior lawyers had attended the controversial event.

marco.cillario@legalbusiness.co.uk

Legal Business

Who Represents Who: Firms that will be affected by the fall of Carillion

For more information on Who Represents Who, contact:
David Burgess,
Publishing Director, The Legal 500
legal500.com/wrw
david.burgess@legal500.com

Legal Business

Life during law: Tom Cassels, Linklaters

My family moved from London to Essex in the seventies, we bought a big house with a big garden and were going to live off the land. We were basically seen as the village’s hippies – the obvious background for a City lawyer! It went wrong because my dad wasn’t very good at killing chickens, and I became very attached to a duck. He became a teacher to get an income to buy things.

I never decided I wanted to be a lawyer. I studied law because I wanted a fresh start. The school I went to – a large Essex rural comprehensive – did not traditionally produce Oxbridge candidates and I thought: ‘At least everyone is starting from the same place if I do law.’ But even then, I was clearly going to be a footballer, a rock star or a journalist in my head.

Legal Business

For what they’re worth – Links, 2Birds and Pinsents among law firms disclosing chunky gender pay gaps

The UK’s top law firms have begun disclosing figures on gender pay gaps, with an initial round of numbers showing City giant Linklaters has the biggest gulf between male and female earnings.

The Magic Circle firm on Wednesday (7 February) published its figures for gender pay bands, as required under legislation introduced last year, which showed Linklaters paid its male staff members nearly 60% more in bonuses than women. The firm’s female employees were paid on average 23.2% less than male colleagues. The gap widened to 39.1% when the median figure was considered.

Linklaters’ figures were published as three more top 50 law firms today (8 February) unveiled equivalent numbers: Pinsent Masons, Taylor Wessing and Bird & Bird.

Taylor Wessing had the smallest gap, as the average hourly pay was 13.48% higher for men, rising to 32.1% on a median basis. In comparison, female staff at Bird & Bird earned on average 14.5% less per hour than their male counterparts, a figure that grows to 27.6% when earnings are ranked on a median basis.

The average pay gap at Pinsents was significantly higher at 22.4%, which the firm said was due to its regional office network resulting in lower rates for bottom-earners. However, the firm had the lowest median gender pay gap of the group at 22.4%.

CMS has already announced its figures, demonstrating that the average UK hourly earnings rate for women is 17.3% lower than men, while the median average hourly rate was 32.8% lower. CMS had the lowest mean average gap in terms of bonuses at 26.9%, while the firm’s median gap was at 30.4%.

Figures for the group were lower than the mean and median pay gap for the legal sector overall, which the Office for National Statistics estimates at 24% and 25.7% respectively.

The disclosures cover all business support staff and associates and demonstrate the position as of 5 April 2017. All UK companies with more than 250 staff are required to publish such figures by 4 April 2018.

All the law firms profess confidence that they are paying male and female employees the same for equivalent jobs. They gave broadly similar reasons for their gender pay gaps, pointing to the fact that there were more women in less well-paid roles and a higher number of part-time female lawyers.

At Linklaters, women made up 79.2% of staff in the lowest-earning quartile – which includes secretarial and junior business team positions. In this quartile, the pay gap was 5.96% in favour of women. But in the upper quartile of earners at the firm, women accounted for 44.9% and earned 6.5% less than men.

‘We are confident that we pay men and women fairly for equivalent roles,’ stated Linklaters in a formal announcement, adding that there was a ‘more significant gender imbalance within our lower pay quartile’. ‘This also feeds into our bonus figures because the bonus potential for our secretarial and junior business team roles is generally lower than for our legal and more senior business team roles.’

Bird & Bird – where bonuses paid to women were on average 33.5% lower than those paid to men – stressed that the bonus gap also reflected the higher number of part-time female employees. Only two men worked part-time at the firm last year, compared to 60 women. ‘Unlike the pay gap figures, which are based on hourly rates, the bonus figures are the actual sums paid. This means that those who work part-time or have been on maternity leave for part of the bonus year will have lower bonuses than men carrying out an equivalent role,’ said the firm.

Cynics will argue that law firms have ducked the key issue as they are not required to disclose the gap in earnings between male and female partners. And law firms being fond of preaching high standards while taking the low road of pragmatism are collectively taking it upon themselves to report as little as possible. The jaded may also note that years of publishing poor numbers on female partnership ratios has had little discernible impact on the advancement of women.

Marco.cillario@legalbusiness.co.uk

Legal Business

Deal watch: Linklaters and Simpson line up on £6bn KKR deal as Ashurst leads on £575m float

Capping off another busy year for European buyouts, Linklaters lined up opposite Simpson Thacher & Bartlett and Dentons as Unilever agreed to sell its spreads business to private equity giant KKR for €6.8bn (£6bn).

Corporate partner Matthew Bland (pictured) led the Magic Circle law firm’s team for the consumer goods group, which announced on Friday (15 December) that it had received a binding offer to sell brands including Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. Linklaters partner John Crozier also worked on the deal.

It is part of Unilever’s review of its business launched in April following the rejected $143bn takeover attempt by competitor Kraft. Linklaters advised Unilever at the time too.

Simpson Thacher acted for key client KKR, fielding a team under City corporate partner Clare Gaskell. The New York-bred law firm is also advising on the financing, antitrust and tax aspects of the deal, with a line-up including partners Ian Barratt, Sinead O’Shea, Nick Shaw, David Vann and Meredith Jones. The investment is backed by the European and North American funds of KKR. Dentons advised the buyout house on due diligence and carve-out aspects. Corporate partners Stephen Levy and Joe Altendorff led the global law firm’s team.

Unilever’s spreads business operates across 66 countries and turned over €3bn in 2016. Its chief executive Nicolas Liabeuf will continue to lead the business. The deal awaits antitrust clearance and will go through employee consultation in some jurisdictions. Completion is expected in mid-2018.

Ashurst, meanwhile, has acted on one of the largest initial public offerings to hit London in 2017, advising a syndicate of banks on the listing of motor insurance underwriter Sabre Insurance Group, which values the business at £575m. The underwriting consortium comprised Barclays, Numis, Peel Hunt and Berenberg, with Sabre receiving roughly £206m of primary proceeds through the float on the London Stock Exchange.  Ashurst’s team was led by London corporate partners Simon Bullock and Jennifer Schneck, alongside regulatory partner James Perry, tax partner Nicholas Gardner and employment partner Crowley Woodford.  Dickson Minto partners Colin MacNeill and Duncan Christison acted for the issuer.

marco.cillario@legalbusiness.co.uk

tom.baker@legalbusiness.co.uk

Legal Business

‘It’s no different to being a deal lawyer’ – Jacobs reflects on a year at Linklaters’ helm

Last October, Linklaters’ Charlie Jacobs took over as senior partner amid high hopes that the rainmaker would bring flair and dynamism to leadership at a City giant that looked in danger of losing its way. One year on, Legal Business sat down with Jacobs to discuss progress made.

On taking the senior partner role:

‘When I stood for senior partner, I had a lot of questions: “Why are you doing this? Why don’t you wait a few years?” I wanted to set the tone. There is a lot going on in our industry and we could do with someone dynamic and at a young age.

Legal Business

Global Elite advise Siemens on €40bn German IPO of medical division

Latham & Watkins, Linklaters and Sullivan & Cromwell are all advising as German conglomerate Siemens plans to list its €40bn medical technology unit in what will be one of the largest IPOs in the country since Deutsche Telekom floated for €13bn in 1996.

The listing is slated for the first half of 2018 on the Prime Standard segment of the Frankfurt Stock Exchange and will see Siemens create Siemens Healthineers, a spin-off of the company’s medical technology business. After the listing, Siemens will become the new company’s most significant shareholder.

Siemens’ medical technology division is the largest contributor of revenue to the business, achieving sales of €13.8bn in the 2016/17 business year.

The Latham team advising longstanding client Siemens is led by Frankfurt capital markets partner Oliver Seiler alongside Munich corporate partner Rainer Traugott. Hamburg corporate partner Dirk Kocher, Düsseldorf corporate partner Nikolaos Paschos, Hamburg regulatory partner Christoph Engeler and Munich tax partner Thomas Fox make up the Magic Circle firm’s German team. In London, capital markets partner David Boles also advised for Latham.

Linklaters is representing Siemens Healthineers on the IPO, spearheaded by Düsseldorf corporate partner Ralph Wollburg with support from Frankfurt capital markets partner Marco Carbonare. US firm Sullivan & Cromwell is acting for a consortium of banks including Goldman Sachs, Deutsche Bank and JPMorgan. The firm’s team comprises Frankfurt capital market partners Carsten Berrar and  Krystian Cznerniecki.

For Latham it is a second major instruction by Siemens in a year, as the firm advised the company on its $4.5bn acquisition of US software provider Mentor Graphics in November 2016 .

The transaction saw Latham field a 15-partner team, led by New York corporate partners Adel Aslani-Far and Eli Hunt, alongside New York partner Jim Gorton and London employment and pensions partner Catherine Drinnan. Traugott, who is acting on the IPO, also advised.

tom.baker@legalease.co.uk

Legal Business

Disputes round-up: Links and Milbank secure win on high-stakes Visa dispute as High Court rules against Morrisons on data breach

Linklaters and Milbank, Tweed, Hadley & McCloy have successfully defended client Visa in a claim brought by Sainsbury’s, with Mr Justice Phillips ruling for the first time that interchange fees do not affect competition.

The case which concluded yesterday (30 November) initially saw a number of retailers led by the Arcadia Group claim that fees charged to them each time a customer pays using a credit or debit card breached UK and EU competition law. By the time of the closing submission in February, all claimants had settled except Sainsbury’s, which instructed Morgan, Lewis & Bockius.

Linklaters disputes partner Tom Cassels and Milbank London co-managing partner Julian Stait led the teams co-counselling Visa, while Morgan Lewis London managing partner Frances Murphy acted for Sainsbury’s.

This judgment follows a ruling in favour of another credit card operator, Mastercard, handed down in January for a claim brought by the Arcadia Group.

But while in that case Mr Justice Popplewell held that interchange fees were restrictive of competition but objectively necessary, yesterday’s judgment said they are not anti-competitive by their nature. Phillips said competition between banks to service Sainsbury’s is very strong, and there is no evidence it would be any different if there were no interchange fees: ‘Sainsbury’s claim therefore fails in its entirety.’

A spokesperson for Sainsbury’s said the retailer maintained Visa breached competition law and damaged Sainsbury’s, adding it was ‘disappointed by the decision’. The retailer requested and obtained permission to appeal and is now considering its position.

There have been a number of previous cases brought against Mastercard across Europe for credit card fees. The General Court and Court of Justice of the European Union found that Mastercard’s fees were restrictive of competition.

Sainsbury’s relied upon those cases in its successful claim against Mastercard in July last year, in which the credit card operator was ordered to pay £68.5m in damages.

But yesterday’s ruling took a different approach, distinguishing the European cases and setting a new precedent determining that Visa’s UK interchange fees are not restrictive of competition.

The decision came as the High Court today (1 December) found retail giant Morrisons liable for a mass data leak that took place in 2014, when then-employee Andrew Skelton released the salary and bank details of nearly 100,000 staff. The claimants, a group of 5,518 Morrisons employees, brought the group action and were represented by Manchester law firm JMW Solicitors. DWF disputes consultant Andrew Harris advised Morrisons.

Mr Justice Langstaff ruled that while Morrisons did protect the data of its employees and that the leak was not the company’s fault, it was vicariously liable. In his judgment, Langstaff said: ‘The point which most troubled me in reaching these conclusions was the submission that the wrongful acts of Skelton were deliberately aimed at the party whom the claimants seek to hold responsible, such that to reach the conclusion I have may seem to render the court an accessory in furthering his criminal aims.’ Langstaff granted Morrisons leave to appeal.

Andrew Moir, global head of cyber security at Herbert Smith Freehills, told Legal Business: ‘The case is significant because it is the first successful class action in the UK arising from a data breach, and establishes the principle that companies can be vicariously liable for “inside-jobs” perpetrated by their employees. It also paves the way for those affected by data breaches to claim damages for any distress caused, even if they have not suffered any financial loss as a result of the breach.’

marco.cillario@legalbusiness.co.uk