Anna Cole-Bailey rounds up the latest management reshuffles at home and abroad
The autumn saw significant c-suite changes announced at Global 100 and Legal Business 100 (LB100) players, with Baker McKenzie voting in Milton Cheng as its new chair in a victory for the Asia partnership, while the figureheads of Herbert Smith Freehills (HSF), TLT and Clyde & Co will step down to pave the way for successors.
Bakers lifer Cheng, who has been the firm’s Hong Kong managing partner since 2014 and chief executive for the Asia-Pacific region, took over in October from acting global chair Jaime Trujillo and is set to serve for a four-year term.
Cheng’s election marks the first time a partner from the Asia practice has taken the top leadership spot, with him seeing off challenges from North America head Colin Murray and EMEA chief executive Fiona Carlin. He joined the firm as a trainee in Singapore, before becoming partner in 1999.
There is likely to be scrutiny on Cheng’s first year at the helm and hopes it will end with a marked improvement on the firm’s recent financials, which saw market volatility result in revenue growth of 4% in constant currency terms but just 1% in dollar terms.
Elsewhere, HSF is gearing up to select a new leader after chief executive Mark Rigotti said he would be standing down once his term ends on 30 April. Rigotti told Legal Business he was leaving the post to return to his native Australia for ‘personal and professional reasons’.
‘I’ve been making sure the TLT balance sheet is as strong as possible. John Wood’s got a fantastic platform to work from.’
David Pester, TLT
A successful five-year spell saw Rigotti take the leadership mantle at HSF alongside Sonya Leydecker in 2014 following the merger between Herbert Smith and Freehills in 2012 but he became sole leader in 2017.
The new incumbent will occupy the sole chief executive position and the selection process is likely to produce similar challenges to those faced last year by the firm, when senior partner James Palmer received approval from 50% of the partnership to see off a challenge from disputes partner Mark Shillito in an episode that illustrated the delicate power balance between HSF’s transactional and contentious factions.
Meanwhile, 2020 will see one of the UK’s most successful and longstanding law firm leaders step down. Bristol-based top 50 LB100 firm TLT has appointed a new managing partner ahead of David Pester’s departure from the top position after 19 years. John Wood, who has been corporate head at the firm since 2003, will take over next April. Pester was the firm’s first managing partner when he was elected in 2001 following the merger of Trumps and Lawrence Tucketts to form TLT. During his tenure, revenue has grown from just £8m to £87.6m, while the firm has opened six new offices and increased in size to more than 1,000 staff.
Partners were made aware of Pester’s intention to step down after his sixth term more than two years ago, resulting in a recent four-week contested election from which Wood received a clear mandate.
Pester will remain at the firm in a strategic role and will work closely with Wood in the coming months as part of the transition. Wood told Legal Business his manifesto was to continue accelerating growth at the firm. In July, TLT reported a 7% increase in revenue for 2018/19: 48% higher than in 2014 and more than double its 2012 turnover.
‘This isn’t going to be a major pivot or change in direction,’ commented Wood. ‘A change like this can be a stimulus and accelerant to the business. We want to continue to grow with a renewed confidence in what we can achieve.’
Pester added: ‘One of the things I’ve learned over 19 years is whenever you go through the different trading cycles there’s always opportunity. I’ve been making sure the TLT balance sheet is as strong as possible to take advantage of difficulties others may face in the market if it becomes more uncertain. John’s got a fantastic platform to work from.’
Finally, Clyde & Co has also made a leadership reshuffle, appointing chief operating officer Matthew Kelsall as chief executive in the place of respected Peter Hasson, who signalled in July that he would be stepping down after 14 years. Consistently cited as a much-needed business-savvy leader since becoming a non-lawyer chief executive, Hasson has played a crucial role in developing the firm since 1997 and served as the firm’s first chief executive from 2005.
Kelsall’s appointment is effective from 1 January and follows the election of Peter Hirst as the firm’s senior partner from 1 November. Hirst replaces Simon Konsta, who said in June that he would be giving up his leadership role just halfway into his five-year term (for more on recent developments at Clydes.
Kelsall joined Clydes in 2007 and was previously chief operating officer in North America, based out of the firm’s New York office. He also served as chief operating officer of the Middle East and North Africa as well as Asia-Pacific.