Legal Business

PwC boosts energy capability with hire of NRF head of nuclear Fiona Reilly

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PricewaterhouseCoopers (PwC) has boosted its nuclear energy capability with the hire of longstanding Norton Rose Fulbright energy partner and head of nuclear services Fiona Reilly, the third departure from the top 10 LB100 firm’s London office this month.

Reilly joined the now 2647-lawyer firm in January 1999, having previously worked in-house as commercial counsel at UK nuclear steam turbine producer Alstom.

During her time at Norton Rose Reilly, who became a partner in 2011, was seconded to Star Energy as its general counsel, advising on corporate and commercial issues.She specialises in all aspects of the nuclear cycle from new build and licensing, decommissioning, fuel storage and waste management, and frequently advises on liability regimes and contracts relating to the financing and construction of nuclear stations.

Reilly joins PwC as a director in the nuclear energy team to develop the global energy practice, where she will be involved in transactions, dispute resolution and regulatory compliance.

Her departure comes six months after the merger between Norton Rose and Houston-based Fulbright & Jaworski went live in June, and marks the third exit this month after longstanding antitrust partner Mark Jones most recently announced he is to join the antitrust, competition and economic regulation practice at fellow transatlantic firm Hogan Lovells in the New Year, as announced by the firm on Tuesday (19 November).

Jones’ resignation only shortly follows that of leading competition partner Michael Grenfell, who confirmed to Legal Business last Thursday (14 November) that he is to join the Competition and Markets Authority (CMA) as a senior sectoral director, having specialised in competition for 25 years and headed NRF’s competition group between 2002-2011.

A spokesperson for Norton Rose Fulbright said: ‘We confirm that Fiona has left the practice. We thank her for her contribution and wish her all the best in her new role.’

PwC was unavailable for comment immediately at the time of writing.

sarah.downey@legalease.co.uk

Legal Business

NRF loses second competition veteran as Mark Jones joins Hogan Lovells

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Hogan Lovells has confirmed its latest lateral hire is Norton Rose Fulbright longstanding antitrust partner Mark Jones, who is to join the antitrust, competition and economic regulation (ACER) practice at the transatlantic firm in the New Year.

Jones is experienced in various aspects of competition law including behavioural and market investigations, merger control and compliance and utilities regulation, across the energy, infrastructure, insurance, and retail sectors.

His departure coincides with that of leading partner Michael Grenfell who, it emerged last Thursday (14 November), is to join the Competition and Markets Authority (CMA) as a senior sectoral director, having specialised in competition for 25 years and headed NRF’s competition group between 2002-2011.

Hogan Lovells co-head of the ACER practice and competition heavyweight Suyong Kim said: ‘Mark’s extensive experience and success in high profile competition and regulatory investigations speaks for itself.

‘He is extremely well-regarded in the market and many of the Hogan Lovells team already know him from working alongside him on competition investigations and appeals. Mark’s recruitment reflects our continuing investment in our global team, which combines first-rate client service and legal skills with in-depth industry knowledge.’

Mark Jones added: ‘After twenty great years at Norton Rose Fulbright I am very much looking forward to joining the hugely impressive Hogan Lovells team.’

Hogan Lovells has made a number of high profile lateral hires in recent months, including Field Fisher Waterhouse’s (FFW) head of data protection Eduardo Ustaran, as well as SJ Berwin corporate partner Ed Harris.

Meanwhile Norton Rose, in a statement said: ‘Norton Rose Fulbright’s competition team has expanded globally in recent years and now has over 120 leading competition lawyers internationally including over 20 in London.’ Martin Coleman, global practice leader of antitrust, competition and regulatory, added: ‘After 20 years at the firm, we can understand that Mark is leaving for a fresh challenge. He has been a great colleague personally and we would like to thank him for his contribution to the firm.’

sarah.downey@legalease.co.uk

Legal Business

Norton Rose antitrust partner to join new competition authority as body unveils second wave of directors

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As the Competition and Markets Authority (CMA) pulls together the second wave of its senior leadership team one of the names that stands out is Michael Grenfell, who is joining the new body as a senior sectoral director from Norton Rose Fulbright, where he has specialised in competition for 25 years, including heading the group between 2002-2011.

Grenfell, who is a leading name in competition circles and co-author of Coleman and Grenfell on the Competition Act, becomes one of five appointments to the new markets and mergers directorate of the CMA, which brings together the Competition Commission (CC) and certain consumer functions of the Office of Fair Trading (OFT).

In his new role Grenfell will work closely with regulatory bodies including Ofwat, Ofgem and Ofcom to help promote competition in those sectors and across areas including rail, gas and air.

He told Legal Business: ‘Norton Rose is a fabulous firm and it has a great anti-trust and competition practice with some very good people and I will be very sorry to leave but it is a huge opportunity to play a part in the formation and enforcement of competition law and policy by the CMA and I am looking forward to this new challenge.’

Also appointed to the markets and mergers directorate is Nelson Jung, who becomes the CMA’s director of mergers and who currently holds the same role at the OFT, having previously served as director of competition enforcement. He joined the OFT in 2010 from Clifford Chance, where he was a competition associate.

Other lawyers in this latest round of appointments include the CC’s deputy chief legal adviser and head of international Carole Begent, who joins the CMA as senior legal director for markets and mergers; director of competition enforcement and head of the OFT’s enforcement academy Claudia Berg, who joined the OFT from Linklaters and will hold the same role at the CMA; OFT legal director and project director Jason Freeman, who joins as director for consumer law; CC legal director Simon Jones who joins as director for litigation; and CC chief legal adviser Roland Green, who joins as deputy general counsel and senior legal director for policy, precedent and procedure.

In September the CMA announced that Sarah Cardell had been appointed as its general counsel. Cardell, a former Slaughter and May partner, joins from Ofgem where she was partner for legal markets.

Cardell joins new CMA executive director, Sonya Branch, who moves across from her role as the executive director at the OFT, where she has been since 2007 having left HER role as corporate partner at Clifford Chance.

Norton Rose’s global head of antitrust and competition, Martin Coleman, said: ‘This is a great move for Michael. The transition of private practice lawyers into government and regulatory roles (and vice versa) is a good thing for both regulators and the business community and in this case Michael will bring over 20 years of excellent experience at Norton Rose Fulbright to his new role. We wish him all the best in his new job.’

caroline.hill@legalease.co.uk

The CMA appointments in full:

Senior Director, Consumer Enforcement – Nisha Arora is currently Senior Director in the OFT’s Services, Infrastructure & Public Markets Group, in which she previously served as a Director. Prior to joining OFT in 2011, Nisha served as a senior legal adviser in the Department of Business, Innovation & Skills, and the Cabinet Office. She trained as a solicitor with Denton Hall.

Senior Director, Cartels & Criminal Group – Stephen Blake is currently Senior Director in OFT’s Cartels & Criminal Enforcement Group, in which he previously served as Director of Cartels. Stephen has held a number of positions in the OFT since joining in 1998 as a competition lawyer, including a secondment to the European Commission’s cartels unit. Prior to this Stephen practised as a solicitor in the City.

Senior Director, Anti-Trust – Ann Pope has been Senior Director in OFT’s Services, Infrastructure & Public Markets Group since July 2012. Having trained as an economist, she has over 20 years experience in the OFT and has held a number of senior positions since 2006. Over the last few years Ann has specialised in running CA98 investigations.

Senior Director, Markets – Daniel Gordon is currently Chief Economist at the CC. He joined the CC from Ofcom, where he was Director of Competition Policy. Prior to that, Daniel was at the OFT, where he first led the Market Studies Programme, before becoming Senior Director with responsibility for infrastructure markets. His early career was with the Treasury and the Monopolies and Mergers Commission.

Senior Director, Sectoral Regulation – Dr Michael Grenfell joins the CMA from Norton Rose Fulbright LLP, where he has specialised in competition law for 25 years, including for the past 15 years as a Partner and a period as Head of the firm’s London Competition Group. Michael has also been an active member of the Competition Law Committee of the City of London Law Society and chaired its Working Group on the UK competition law reforms currently being implemented.

Director, Mergers – Nelson Jung is currently Director and Head of Mergers in the OFT, having previously served as Director of Competition Enforcement. Prior to joining OFT in 2010, Nelson worked at Clifford Chance, where he served as a senior associate specialising in mergers and other competition cases.

Group Director, Markets & Delivery – Rachel Merelie has been Senior Director, Inquiries at the CC since 2007, having previously served as an Inquiry Director. In her earlier career, Rachel managed business planning and strategy for Ernst & Young and the transition to Cap Gemini Ernst & Young, worked for Gemini Consulting as a management consultant and held a variety of roles in the electricity industry.

Senior Director, Mergers – Sheldon Mills is currently the OFT’s Senior Director of Policy and Procedural Adjudicator having formerly served as Director of Mergers for three years. Sheldon is a qualified solicitor and served as a senior associate in King and Wood Mallesons SJ Berwin and associate in Jones Day in his earlier career.

Senior Legal Director, Markets & Mergers – Carole Begent is currently Deputy Chief Legal Adviser and Head of International at the CC, where she has served as a legal adviser since 2000. Carole previously held legal advisory and policy roles at the sectoral regulators ORR and Ofwat, having trained as a solicitor at Beechcroft Stanley.

Senior Legal Director, Enforcement – Claudia Berg is currently Director of Competition Enforcement and Head of the OFT’s Enforcement Academy. Prior to joining OFT in 2010, Claudia spent 8 years in the competition practice of Linklaters. Her early legal training was with prominent law firms in Germany and Brussels.

Director, Consumer Law – Jason Freeman is currently Legal Director and Project Director at the OFT, where he has served in a number of roles since 2005. Jason has a particular specialism in UK consumer law. He joined the OFT following practice at the Bar.

Deputy General Counsel and Senior Legal Director, Policy, Precedent & Procedure – Roland Green has been Chief Legal Adviser at the CC since 2010. Previously Roland held a variety of senior legal roles in BERR, DECC, DTI and the Home Office. While at DTI he specialised in competition law, and was instrumental in the development of the Enterprise Act 2002.

Director, Litigation – Simon Jones has been a Legal Director at the CC since 2008 having joined the CC in 2001. He has advised on a wide range of merger, market and regulatory inquiries and has led the CC’s defence in numerous actions in the Competition Appeal Tribunal, High Court and Court of Appeal. Before joining the CC he ran a public law, commercial and regulatory litigation practice at Treasury Solicitors, having first trained as a solicitor with Slaughter & May.

Economics Director, Markets & Mergers – Kate Collyer has been Director of Economic Analysis at the CC since 2012, having rejoined the CC after 4 years as Director of Economics at the Cooperation and Competition Panel of the Department of Health. Kate’s early career was as an economic consultant with Lexecon Ltd.

Senior Director, Research, Intelligence & Advocacy – John Kirkpatrick is currently Director of Policy and CMA Transition Lead at the CC. John has served as an Inquiry director at the CC and Director of Studies & Policy at the Audit Commission. His early career was with McKinsey & Co and the Department for Education and Employment.

Group Director, Remedies, Business & Financial Analysis – David Roberts is currently Chief Financial & Business Adviser and Head of Remedies at the CC, which he joined in 2002 from J Sainsbury, where his roles included Director of Corporate Finance and Group Treasurer. He previously worked for BP and qualified as a chartered accountant with Deloitte, Haskins & Sells.

Economics Director, Enforcement – Chris Walters is Chief Economist at the OFT, where he has held a number of senior economist positions since 2007, joining from the CC. In his early career Chris was an academic and economic consultant.

Legal Business

Revolving Doors: Linklaters hires former Herbert Smith Asia head as Clayton Utz and Norton Rose make key hires

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Herbert Smith Freehills recent internal confidence that its run of post-merger exits had come to an end has been dashed after Friday (16 August) saw former Asia disputes head Gavin Lewis leave to join Linklaters.

A ‘solid and experienced litigator’, Lewis is ‘among the best in Hong Kong’ according to The Legal 500 and his departure is a blow to the firm in the wake of the exodus of other high profile litigators such as Ted Greeno to Quinn Emanuel Urquhart & Sullivan earlier this year and Kevin Lloyd to Debevoise & Plimpton last year.

Lewis joined Herbert Smith in 1996 and after spending two years as managing director at UBS in Hong Kong, returned to the firm in 2008, becoming head of the firm’s first-tier Asia disputes practice in 2011.

His departure follows that of Hong Kong colleague and financial services regulatory partner Tim Mak, who left for Freshfields Bruckhaus Deringer in April this year. Meanwhile, Lewis is Linklaters’ third raid on Herbert Smith in less than a year, after contentious financial regulation partners Martyn Hopper and Nikunj Kiri joined in September and January respectively.

A spokesman for Herbert Smith said: ‘We’re grateful for Gavin’s contribution and wish him all the best for the future.’

The fallout of largely legacy Herbert Smith partners have been attributed to a number of factors, all related to its merger with Australia’s Freehills, including the resistance of many of Herbert Smith’s more conservative partners to operating as a global merit driven business.

Elsewhere, the ink had only just dried on SJ Berwin’s market changing tie-up with Asia-Pacific firm King & Wood Mallesons (KWM) when Clayton Utz last week announced the hire of KWM Australia real estate partner Andrew Norman.

Norman had been with legacy Mallesons for 22 years and has been involved in projects including the leasing and development of National Australia Bank’s Commercial office headquarters in Docklands, Melbourne, and the sale of GE Real Estate’s Australian property portfolio to Mirvac, valued at over Aus$1.4bn.

Clayton Utz, one of the big six Australian firms which has made clear its strategy to remain independent, is looking to boost its property practice as the country suffers from a dip in transactional activity.

A spokesperson for the firm told Legal Business: ‘It’s a strategic lateral hire in an area where we’re anticipating strong future growth.’

Meanwhile, Norton Rose Fulbright has boosted its dispute resolution practice with the hire of Elisabeth Bremner from DLA Piper in London.

Bremner’s broad ranging practice includes investigating allegations of insider dealing, market abuse and trader mis-marking in the investment banking and hedge fund sectors.

‘Our litigation team continues to grow with the appointment of Elisabeth and recent hires including Kirsty Hick. In addition, through our recent combination we have expanded our global offering to include over 1000 dispute resolution lawyers,’ said Deirdre Walker, head of dispute resolution and litigation for Europe, Middle East and Asia.

Legal Business

NQ retention and pay: Good news for NRF and Bird & Bird but FFW puts 5 trainees on extended contract

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If you see a rabble of trainees at the pub this lunchtime they may well be from Norton Rose Fulbright (NRF), which today (13 August) announced it has increased its newly-qualified (NQ) salary by £1,500 and offered in excess of 90% of its trainees a permanent position.

The newly merged, 3,800-lawyer firm has announced a trainee retention rate of 92% after offering 24 of its 26 trainees a NQ role, up from 89% in its last round in May. It has also increased its NQ salary from £61,500 to £63,000, effective 1 July (and backdated to 1 May this year). First and second year trainees will remain constant at £38,000 and £43,000 respectively.

On the retention figures, Sarah Kelly, London head of HR at NRF said: ‘These are our first retention figures since our US combination went live and we are really pleased with the rise to a 92% retention rate. We have had three qualification rounds this year and have kept a consistently high retention rate throughout.’

Elsewhere, the news has also been good for trainees at Bird & Bird, which this round boasts a 94% retention rate. A total of 15 out of 16 trainees from the 2011 intake were made offers, with all accepting associate roles with the firm, while one chose to return to university.

Commercial partner Christian Bartsch said: ‘We are delighted to have been able to offer full contracts to 15 of our trainees from the 2011 intake. They have worked very hard and demonstrated an exceptional level of commitment to the firm. We would like to take this opportunity to welcome them as associates within their respective practice groups.’

However, at City firm Field Fisher Waterhouse the position for trainees is far less clear. The firm’s retention rate appears on the surface to be a respectable 76%, as the firm has offered 12 of its 17 trainees a role and all have accepted. But the figure is in fact far lower as five of these 12 positions have been structured as a 12-month fixed term contract to give the partners further time to assess their performance. A spokesperson for the firm claimed that ‘none of the fixed-term positions are for a paralegal role being dressed up as a NQ role,’ and that the firm is ‘confident that all of these will ultimately result in permanent positions.’

At Orrick, meanwhile, only two out of its eight trainees applied for a training contract, according to a spokesperson for the firm, giving it a retention rate of just 25%.

sarah.downey@legalease.co.uk

Legal Business

Reappointing and renewables – the newly-merged Norton Rose Fulbright and Bond Dickinson in again on Crown Estate energy panel

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Norton Rose Fulbright and Bond Dickinson have been reappointed to the Crown Estate’s energy and infrastructure panel in what will be regarded as an important win for both law firms.

The Crown Estate said that the move ‘consolidated legal advice across an extremely diverse portfolio’, cutting the body’s previous specialist panel from five to two advisers after a competitive tender process. The appointments will be considered as trophy roles for both firms, in particular underlining their credentials in the renewable energy sector, which remains a coveted area for advisers despite protracted challenges in Europe’s sustainable energy sector.

Norton Rose Fulbright, which was one of only two firms appointed to the Crown Estate’s first energy panel in 2008, will advise on its activities in offshore wind, carbon capture, wave energy, natural gas storage and emerging technologies such as biomass. Bond Dickinson will advise on the estate’s marine aggregates business and its interest in transmission and pipelines, with chairman Nick Page acting as relationship partner to the client.

Bond Pearce was also on the energy panel prior its merger with Dickinson Dees in May this year, and also previously provided advice on other matters across the body’s marine, urban, rural and Windsor estates.

Crown Estate legal director Vivienne King said: ‘The energy and infrastructure portfolio is one of the most diverse and exciting parts of our business making for an extremely competitive tender process. Having worked with both Norton Rose Fulbright and Bond Dickinson before, we know that they share our values understand our ambitions for the portfolio which is at the forefront of the offshore low carbon industry.’

Norton Rose and US law firm Hunton & Williams were the only two firms to take a place on the Crown Estate’s initial energy panel in 2008, offering advice on the development of the UK’s offshore wind capacity.

The panel was later expanded to include the legacy Bond Pearce, as well as Burges Salmon and Scots practice Anderson Strathern.

The Crown Estate, which is responsible to the UK Treasury, manages a property portfolio valued at £8.6bn. The body is responsible for the management of almost the entire UK seabed and around 50% of the UK foreshore as well as holding rights to all natural resources on the UK continental shelf, excluding fossil fuels. It also holds the rights to license the generation of renewable energy and gas storage in the same area.

Francesca.fanshawe@legalease.co.uk

Legal Business

Can’t make an omelette – newly-merged Norton Rose Fulbright sees exodus in Middle East

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So far the high-stakes merger between Norton Rose and US practice Fulbright & Jaworski has been sealed with minimal fall-out but a prominent exception has been confirmed in the Middle East with an eight-partner team quitting the legacy Houston law firm’s Dubai arm for a rival.

Baker Botts today (16 July) confirmed the hire of a 14-lawyer team, which includes the bulk of the legacy Fulbright & Jaworski’s Dubai branch.

The eight-partner team includes corporate partner John Lonsberg, who was a key figure in putting Fulbright on the map in the Middle East. He has had experience of working in the Middle East since 1980.

Following Lonsberg are his Dubai colleagues Mark Bisch and Richard Devine, both finance partners, disputes partners Jonathan Sutcliffe and Joseph Colagiovanni, corporate partner Hassan Elsayed and financial institutions partner Philip Punwar. Sam Eversman, a finance partner also joins from Fulbright’s Riyadh branch. Joining in addition are five associates, a trainee and several support staff.

The partners will be based across Baker Botts’ network in the Middle East, including Dubai, Riyadh and Abu Dhabi, although the majority will work out of Dubai.

This is the first sign of substantive fallout from the merger between Norton Rose and Fulbright, which went live last month, creating a global giant with combined revenues of nearly $2bn.

Fulbright’s legacy office was based in a different part of the emirate, Festival Tower, as opposed to the Dubai International Finance Centre where Norton Rose and the majority of international law firms are based. The departures have left the firm with only one remaining partner in its Festival Tower office, John Boehm, head of the Riyadh and Dubai practices.

With the departures the firm has around 50 lawyers in the region across Abu Dhabi, Bahrain, Dubai and Riyadh.

Kenneth Stewart, managing partner of Norton Rose Fulbright’s US member firm, said:  ‘Any combination of organisations brings inevitable changes in leadership and responsibilities and some overlap, and we understand that not all individuals will embrace those changes.  The overwhelming majority of our partners and clients are excited with our combination and the expanded global platform it provides.’

Commenting on his move Lonsberg said: ‘I knew [Baker Botts] was interested in growing its platform and practices, and I saw our team’s 30 years’ presence in the Middle East as a full complement to what Baker Botts has developed here in recent years.’

‘This group of talented and experienced lawyers will cement our position as one of the dominant legal forces in the region,’ said Robert Jordan, partner-in-charge of Baker Botts’ Middle East practice.

This move is a signal of intent for Baker Botts’ Middle East ambitions. The Houston-based energy specialist now has 40 lawyers in the region. In March the 700-lawyer firm also announced an alliance with Kuwait’s International Legal Group, Baker Botts’ first foray in the country.

The Middle East had also been an unsettled region for the legacy Norton Rose with the firm seeing a number of senior departures in recent years. However, Norton Rose Fulbright did move to bolster its City practice this week with the hire of CMS Cameron McKenna corporate partner Richard Bull. Bull, whose move was confirmed today, focuses on private equity transactions.

david.stevenson@legalease.co.uk

Legal Business

Global 100: Norton Rose Fulbright

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The ascent of Norton Rose up the global league has been swift in recent years, with the City-based law firm currently in 14th place in the Global 100, with turnover marginally up to $1.33bn. Profits per equity partner (PEP) were $887,000.

This growth came due to the dramatic expansion of the Norton Rose Group with the addition of Australian mid-tier Deacons in 2010 and subsequent takeovers in Canada (Ogilvy Renault and Macleod Dixon) and South Africa (Deneys Reitz).

Legal Business

CC to boost London corporate and regulatory insurance capability with hire of NRF’s Ashley Prebble

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Clifford Chance (CC) has hired Norton Rose Fulbright (NRF) corporate insurance partner Ashley Prebble as the Magic Circle firm aims to boost its Lloyds and London market and general insurance capability.

Prebble, who will work closely with the firm’s private equity and regulatory teams, specialises in corporate and regulatory insurance work including initial public offerings (IPOs), mergers and acquisitions, Part VII transfers, distribution agreements and regulatory matters.

While at NRF, Prebble advised on a number of high profile insurance transactions including the Part VII transfer of Royal Bank of Scotland’s Churchill, Direct Line and NIG businesses into UK Insurance last year, said at the time to be the largest general insurance portfolio transfer ever completed in the UK, with the four insurance business together worth in excess of 20 million policies.

Other headline deals he has advised on include the £135m sale of HSBC Insurance Brokers to Marsh, Admiral Group’s £711 million IPO and Brit Insurance Holdings’ $300m sale of Brit Insurance Limited to Riverstone Holdings.

Katherine Coates, head of the corporate insurance practice at CC, said: ‘Ashley joins us at a key time for the insurance industry, which faces unprecedented challenges and uncertainty due to market and regulatory pressures.

‘Ashley’s particular experience of the London market and general insurance operations will be a valuable addition to our current team, which is uniquely placed to support our clients across the sector on a wide range key strategic projects and transactions in both mature and growth markets.’

CC’s global insurance industry sector group comprises over 180 lawyers from its corporate, banking & finance, capital markets, M&A, regulatory, dispute resolution, antitrust, tax, real estate, pensions and employment teams.

Prebble added: ‘Joining Clifford Chance is the perfect opportunity to develop my practice in the London market and internationally, working as part of a leading global insurance sector team. I look forward to working closely with the firm’s pre-eminent private equity and regulatory teams, as financial investors are playing an increasing important role in the sector and sweeping changes in regulation and regulator approach pose new challenges for clients.’

caroline.hill@legalease.co.uk

Legal Business

Comment: Don’t push your luck with partnership

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Do law firms take partnership for granted? They really shouldn’t as the model has served them so well. Just consider the case. Partnership aligns management and ownership. This has helped large law firms to avoid the patchy governance and rewards-for-mediocrity seen at public companies over the last 20 years and drives partners to a pure form of performance pay. It is inherently long-term and as such has a strong record in promoting independence and ethical standards. And given that law isn’t a capital-intensive trade – at least once you cross the Rubicon of international expansion – partnership is workable (if not ideal) from a financing point of view.

But the killer app of partnership is the meritocratic oddity of institutions aiming to turn a group of workers into owners. It promotes a razor focus on career development and does a lot of the heavy lifting in governance terms at law firms. That obsessive focus on standards and talent coming through the door truly marks out the legal profession from other, less successful industries.

Why the love-letter to partnership? Well, looking at the grim statistics on partner promotions, as we do this month, you can’t escape the feeling that leading law firms are pushing their luck. The top ten largest UK firms, including DLA Piper and Hogan Lovells, together have over 5,500 partners. This group collectively promoted 197 new partners in 2013 – equivalent to 3.5% of their current ranks. These levels are well below the replacement rate needed to sustain partnerships at current sizes and the picture is considerably worse if you look at UK partner prospects. Given that less than half of those making partner trained with their firm or joined at intake level, the traditional track to equity is under unprecedented strain. And as to women making partner – well, even a hard-nosed pragmatist would have to say the current numbers at major City firms – with the honourable exception of Norton Rose – are woeful given the public hand-wringing of recent years.

It still works for now but at a certain point, an increasingly remote partnership will surely cease to function as an effective long-term engagement tool. That would likely leave you with strong junior ranks given the appeal of law. But if joining a law firm really becomes mainly about a start of a career largely focused outside of private practice, the crucial mid-tier associate ranks will be under siege. This is not theoretical – a growing body of research confirms the fading allure of partnership, especially among female lawyers.

Law firm leaders acknowledge this existential threat to partnership but, when it comes down to the annual promotion round, the model is chipped away every year with smaller promotions and more barriers to equity.

We’ve moved into a curious half-life of partnership where the pretence is maintained that the old deal hasn’t changed. But it has changed and we could even soon reach a tipping point where the dominant path for a legal career is one without partnership. That would have huge implications for the UK legal profession. The suspicion is managing partners will come to regret pushing to breaking point the institution that once elevated them.

 

alex.novarese@legalease.co.uk