2025: a vision of Big Law

It is 2025 and the view from the nominal head office of the leading City law firm remains as uncertain as it has for the last 15 years. Not that there hasn’t been progress at what would once have been called a Magic Circle firm. With revenues of £2.5bn, the firm now generates only 30% of its income from the UK. That isn’t much more than it earns from its US practice, which was bolstered four years ago by a takeover of an AmLaw 200 practice, and the decision to reshape its executive and partnership to put London and New York at its heart. The notion that it needed to become a true Anglo-American institution was a culture shock but few seriously question it now.

The old lockstep is long gone – top earners in London, New York and Asia earn five times that of junior partners or those working in less profitable jurisdictions and there are two gateways to negotiate, though it’s still a long way from eat-what-you-kill. Profit per equity partner at £1.9m isn’t that much higher than a decade before but top earners take home well over £3m a year.

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‘A Chinese firm for Chinese clients’: Michelmores supports first UK launch by Chinese-owned law firm

YangTze Law has become the first wholly Chinese-owned law firm to launch in London, targeting Chinese corporates investing in Europe as China’s outbound direct investment overtook investment into the country for the first time earlier this year.

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News in brief – May 2015

WHITTAKER STEPS DOWN AS LLOYDS GC

Group general counsel (GC) Andrew Whittaker is stepping down from his role at Lloyds Banking Group with deputy GC Kate Cheetham set to replace him. Whittaker joined the bank in May 2013 after having served as the legal head of the Financial Services Authority. The bank also saw the departure of disputes chief Philippa Simmons last month and began a redundancy consultation looking at cutting up to 25 mid-level positions.

 

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‘A natural complement’: Cahill launches City litigation practice with Shearman hire and ABS licence

Cahill Gordon & Reindel has launched an English-law City-based litigation practice after hiring litigator Richard Kelly from US rival Shearman & Sterling and gaining an alternative business structure (ABS) licence.

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A ‘challenging period’: ABS Quindell brings in PwC for internal review as share price slides

Alternative business structure (ABS) Quindell, which posted a substantial increase in revenues in its legal services division this summer, has brought in PwC to carry out an independent review on the company’s accounting policies.

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Leadership and innovation – Profession, disrupt thyself?

The Innovator’s Dilemma has become arguably the most influential business book of the last 20 years and is often cited as a key text for a profession facing unprecedented challenges. Legal Business assesses its relevance to global law.

‘The picture… is truly that of an innovator’s dilemma: the logical competent decisions of management that are critical to the success of their companies are also the reasons why they lose their positions of leadership.’
Clayton Christensen, The Innovator’s Dilemma Continue reading “Leadership and innovation – Profession, disrupt thyself?”