Depuis plusieurs années, notre Legal Weekly Update analyse les évolutions du secteur juridique, avec une attention particulière sur les mouvements des associés à l’international. En suivant ces mouvements de près, nous avons formé une base de données unique et riche en insights stratégiques. Ces données nous permettent d’identifier des tendances émergentes et de fournir des informations cléfs pour optimiser vos recrutements, autant à court terme qu’à long terme. L’une des tendances les plus marquantes depuis 2020 est une vague de mouvements d’associés dans les domaines du contentieux et de la résolution des litiges. Des cabinets tels que Dechert et Shearman & Sterling ont été particulièrement touchés. Le départ de certains associés de ces établissements a redistribué les cartes du paysage juridique de la capitale, enclenchant la création de cabinets spécialisés et attirant les compétences les plus pointues vers d’autres pôles.
Dechert a connu des mouvements importants au sein de son équipe contentieux. Plusieurs associés de renom, tels que Claudia Annacker, Eduardo Silva Romero et José Manuel García Represa, ont quitté le cabinet pour créer leurs propres structures, spécialisées dans l’arbitrage international. Cette évolution s’inscrit dans le cadre d’une nouvelle orientation stratégique de Dechert, qui met désormais l’accent sur des secteurs tels que les sciences de la vie et la technologie. En conséquence, le groupe d’arbitrage international parisien, autrefois un pilier du cabinet, a été dissous. Silva Romero a ainsi créé Wordstone Dispute Resolution.
Les départs de nombreux associés de Shearman & Sterling pour créer Gaillard Banifatemi Shelbaya Disputes illustrent une tendance de fond dans le secteur juridique. Les praticiens chevronnés sont de plus en plus nombreux à quitter les grands cabinets pour fonder des boutiques spécialisées, répondant ainsi à une demande croissante pour des expertises pointues en arbitrage international.
Cependant, il est important de noter que le paysage a considérablement évolué depuis. Shearman & Sterling a fusionné avec Allen & Overy pour former A&O Shearman, un géant mondial. Cette fusion s’inscrit dans un mouvement contraire au modèle traditionnel des boutiques, privilégiant l’expansion à grande échelle et une couverture géographique plus vaste. Si le départ d’associés vers des cabinets spécialisés reste une tendance notable, la création de A&O Shearman illustre la consolidation en cours dans le secteur juridique et les diverses stratégies utilisés par les cabinets pour rester compétitifs. La concentration s’accompagne d’une fragmentation du marché juridique, avec l’émergence de cabinets specialistes répondant à des besoins de plus en plus spécifiques.
Cette dualité est également illustrée par l’expansion de cabinets comme Paul Hastings, qui a renforcé son équipe de contentieux avec l’ajout de 12 personnes, notamment grâce à l’acquisition de l’équipe d’Antonin Lévy & Associés, spécialisée dans les affaires en col blanc et les enquêtes. Cette intégration s’inscrit dans la stratégie globale du cabinet visant à renforcer ses capacités en matière de contentieux tout en améliorant sa position dans les litiges internationaux complexes. L’arrivée d’Antonin Lévy et de son équipe devrait attirer de nouveaux clients et renforcer la position de Paul Hastings sur le marché parisien.
Bryan Cave Leighton Paisner et Squire Patton Boggs sont devenus de véritables pôles d’attraction pour les talents juridiques. Squire Patton Boggs a ainsi accueilli Sabrina Aïnouz, Jérôme Lehucher et John Adam, provenant respectivement de DWF et Latham & Watkins, reflétant une tendance aux mouvements en groupe. Bryan Cave Leighton Paisner a également renforcé ses rangs avec l’arrivée d’Élodie A. Valette Wlodkowski, Jean-Pierre Delvigne et Philippe Métais, tous trois en provenance de White & Case. Leur arrivée coïncide avec le départ de Nathan Willmott, responsable européen du contentieux chez Bryan Cave Leighton Paisner, vers Ashurst.
Le cabinet Hoche Société d’Avocats est également devenu un acteur important dans l’attraction de nouveaux talents, avec l’arrivée de Solène Delafond en tant qu’associée au sein de l’équipe contentieux, apportant son expertise en litiges financiers, commerciaux et d’entreprise.
Il est évident que le paysage juridique parisien est en pleine mutation. La montée des cabinets spécialisés et le départ d’associés clés de structures établies, remodèle le marché en offrant aux clients des services juridiques hautement spécialisés. Parallèlement, la consolidation des grands cabinets, illustrée par la formation de A&O Shearman, souligne l’importance continue de la portée mondiale. En outre, des cabinets comme Paul Hastings, Squire Patton Boggs et Bryan Cave Leighton Paisner capitalisent activement sur ce paysage changeant, élargissant leur vivier de talents et leur offre de services. Cette concurrence accrue profitera aux clients, en leur offrant une gamme élargie d’options juridiques spécialisées. Alors que le marché juridique parisien continue à évoluer, la spécialisation et la concurrence accrues sont prêtes à en définir l’avenir.
Rédigé et traduit par Megan Sturdy, delivery consultant chez Fides Search. Pour en savoir plus contactez: +44(0) 747 130 9526 ou megan@fidessearch.com
Over the years, we have shared our Legal Weekly Update, highlighting changes in the legal sector, such as global partner movements and promotions. By tracking partner movements week on week, we have been able to collect rich data that enabled us to identify trends and actionable insights for strategic hiring, in both the long and medium term.
One of the most interesting trends we’ve noticed is in the Paris legal sphere, where we’ve seen a flurry of partner movements in dispute resolution and litigation spaces, since 2020. Firms like Dechert and the late Shearman & Sterling were significantly impacted. The exodus of partners from these establishments has reshaped the city’s legal landscape, leading to the formation of boutique firms and attracting talent to others.
Dechert saw several high-profile exits from its litigation team. Notably, partners – including Claudia Annacker, Eduardo Silva Romero, and José Manuel García Represa – exited the firm in favour of forming boutiques focussed on international arbitration and litigation. The departures are said to have been triggered by Dechert’s strategic shift away from international arbitration and toward life sciences, private assets, private capital, and technology. The Paris International Arbitration Group, which was once an integral part of Dechert, disbanded as partners pursued their own paths. We saw the aforementioned Silva Romero lead the founding of Wordstone Dispute Resolution.
Shearman & Sterling mirrored Dechert, losing a number of partners who merged to form Gaillard Banifatemi Shelbaya Disputes, a boutique firm specialising in international arbitration and law. These departures reflect a systematic shift in the legal market, with seasoned practitioners choosing specialised boutique settings.
However, it is important to note that the landscape has shifted significantly since then. Shearman & Sterling merged with Allen & Overy to form A&O Shearman, a global legal powerhouse. This merger represents a countertrend to the boutique model, emphasising scale and geographic reach. While the departure of partners to boutique firms remains a notable trend, the formation of A&O Shearman exemplifies the ongoing consolidation in the legal industry and the various strategies firms are employing to remain competitive. This trend towards global mergers stands in stark contrast to the rise of boutique firms, suggesting that the legal market is simultaneously pulling in two distinct directions: specialisation and consolidation.
This is further exemplified in the expansion of firms like Paul Hastings, which grew by 12 people, adding a new litigation team through the acquisition of Antonin Lévy & Associés’ white-collar and investigations team. This move is said to be part of the firm’s overall global strategy to strengthen its litigation capabilities while enhancing its position in complex international disputes. The addition of the well-regarded Antonin Lévy and his team is expected to attract new clients and reinforce Paul Hastings’ reputation in the Paris legal market.
Squire Patton Boggs and Bryan Cave Leighton Paisner emerged as top firms in attracting partner talent, with Squire Patton Boggs welcoming Sabrina Aïnouz, Jérôme Lehucher, and John Adam, who joined from DWF and Latham & Watkins respectively, reflecting a trend of group moves. Bryan Cave Leighton Paisner also added three partners: Elodie A. Valette Wlodkowski, Jean-Pierre Delvigne, and Philippe Métais, all of whom joined from White & Case. This move coincided with the departure of Nathan Willmott, Bryan Cave Partners’ European head of litigation, to Ashurst.
We also saw Hoche Société d’avocats emerge as an active player in attracting new talent, with Solène Delafond who joined as a partner in the litigations team, bringing expertise in financial, commercial, and corporate disputes to the firm.
It is evident that the Paris legal landscape is undergoing a significant transformation. The rise of boutique firms, sparked by the departure of key partners from established entities, is reshaping the market by offering clients highly specialised legal services. At the same time, the consolidation of major firms, as seen in the formation of A&O Shearman, highlights the ongoing importance of scale and global reach; additionally, firms like Paul Hastings, Squire Patton Boggs, and Bryan Cave Leighton Paisner are actively capitalising on this shifting landscape, expanding their talent pools and service offerings. This heightened competition promises to advantage clients, offering them an expanded array of specialised legal options. As the Parisian legal market continues to evolve, increased specialisation and competition are poised to define its future course.
Megan is a delivery consultant at Fides Search. To find out more, get in touch at: +44(0) 747 130 9526 or megan@fidessearch.com
Over the past decade, Environmental, Social, and Governance (ESG) factors have transitioned from being peripheral considerations to becoming central tenets of corporate strategy. This shift, driven by increasing awareness of climate change, social justice, and corporate governance issues, is reshaping the corporate world. However, as companies embrace ESG principles, they are also encountering a surge in ESG-related litigation. Understanding this evolving legal landscape is crucial for businesses to navigate the complexities of corporate responsibility.
We wanted to shed some light on how this is playing out and look at the potential difficulties through the lens of litigation.
The Origins of ESG Litigation
ESG litigation has its roots in the growing demand for corporate transparency and accountability. Investors, consumers, and regulators are no longer content with mere lip service in regards to sustainability and ethical practices. They are seeking tangible commitments and results, and when these are not forthcoming, legal action can often follow.
Environmental Litigation:
Firstly, climate change has been a significant driver of environmental litigation. Companies are being held accountable for their carbon footprints, pollution, and failure to disclose climate risks. Landmark cases, where major oil companies are being sued for their contributions to global warming are becoming more common, One such example is Milieudefensie v Royal Dutch Shell in 2021 where it was determined that Shell’s sustainability policy was insufficient and the court insisted that they reduce their global emissions by 45% before 2030. These cases show the evolving legal attitude towards climate change and these precedents are becoming increasingly likely to reverberate across industries in the years to come.
Social Litigation:
Additionally, social issues, including workers rights, diversity, and human rights abuses, have also come to the forefront. Companies are increasingly facing claims for discriminatory practices or failing to uphold fair employment standards in their supply chains. The #MeToo movement has further highlighted the legal repercussions of inadequate responses to workplace harassment and discrimination. A poll for a major national trade union in England and Wales suggested that 68% of people believe that the MeToo movement has allowed individuals to be more open about sexual harassment, illustrating the impact that social litigation can have on a modern society.
Governance Litigation:
Governance-related claims often involve issues of corporate mismanagement, lack of transparency, and breaches of fiduciary duty. Shareholders are becoming more vigilant, demanding higher standards of governance, and pursuing legal action when boards and executives fail to meet these expectations. The UK Corporate Governance Code was updated in January 2024 and will come into effect in 2025 with amended provisions designed to encourage companies to report on outcomes and activities. These incoming changes and the increasingly expressed desire for companies to be explicit about their contribution to human betterment and long-term value hint at the potential impact governance related litigation could have on businesses.
Key Drivers of ESG Litigation
We can see there has been a rise in ESG litigation and also a shift towards sustainable development as a whole, but what factors are contributing to this apparent rise?
Several factors seem to be driving the growth of ESG litigation:
Regulatory Pressure: Governments and regulatory bodies worldwide are enacting stricter ESG regulations. The European Union’s Sustainable Finance Disclosure Regulation (SFDR) and the U.S. Securities and Exchange Commission’s (SEC) increased focus on climate-related disclosures are examples of regulatory efforts pushing companies to adhere to ESG standards.
Investor Activism: Investors, particularly institutional investors, are increasingly prioritising ESG criteria in their investment decisions. They are not hesitant to use litigation as a tool to enforce ESG commitments and drive corporate change.
Consumer Awareness: Consumers are more informed and concerned about the ethical implications of their purchases. Companies that fail to align with consumer values on environmental sustainability and social responsibility risk not only reputational damage but also potential legal challenges.
Judicial Precedents: Recent successful ESG cases have emboldened stakeholders to pursue similar actions. As courts become more receptive to ESG claims, the volume of litigation is likely to increase.
These factors contribute to the rising trend in ESG litigation, both individually and collectively. Consumer awareness provides an understanding of the issues at hand and offers a form of social mobility. As the saying goes, ‘the customer is king’ and in the legal profession, in particular, there is a significant impetus to maintain client satisfaction.
However, there are some who do not see the necessity of adapting to a new era of ESG litigation, claiming that the purported impact of legislation will be limited due to the complexity of court proceedings. Furthermore, the burden of proof is often placed on the disadvantaged party to suggest that they are personally affected. These parties are less likely to have the resources and mobility to successfully take on large companies and governments that joined together to seek change in that case. However, the general trend has alluded to the reality that those who are more disenfranchised are less likely to come out as victors in these types of cases. As the power usually lies in the hands of big corporations and governments, the question is: how likely would it be that these corporations adhere to corporate governance measures that impact them negatively? For these reasons, some might argue that the recent interest in ESG litigation is nothing more than a fad and does not have any real weight behind it.
But are we beginning to see more cases being decided in favour of ESG policies? Recently, the Supreme Court ruled against Surrey County Council, ruling that they should have considered the impact of climate-warming emissions in approving an oil well near Gatwick Airport. Friends of the Earth lawyer, Katie de Kauwe said that “This historic ruling is a watershed moment in the fight to stop further fossil fuel extraction projects in the UK and make the emissions cuts needed to meet crucial climate targets”. We can see from this verdict and the increasing presence of similar cases, that the future is likely to be one where ESG litigation could well be prevalent, and businesses should be concerned about how to adapt to be able to successfully navigate the changing landscape.
Navigating the Legal Landscape
To mitigate the risks associated with ESG litigation, companies must adopt proactive strategies:
Robust ESG Policies: Develop and implement comprehensive ESG policies that are well-documented and aligned with best practices. These policies should be integrated into the core business strategy and regularly reviewed to ensure compliance with evolving standards.
Transparent Reporting: Ensure accurate and transparent reporting of ESG metrics. This includes not only meeting regulatory requirements but also voluntarily disclosing relevant ESG information to stakeholders.
Stakeholder Engagement: Engage with stakeholders, including investors, employees, and communities, to understand their ESG concerns and expectations. This dialogue can help identify potential risks and opportunities early on.
Legal Preparedness: Work closely with legal experts to stay abreast of emerging ESG-related legal trends and ensure that the company is prepared to address potential litigation. This includes conducting regular ESG audits and assessments to identify and mitigate legal risks.
Crisis Management: Develop a robust crisis management plan to address potential ESG-related incidents swiftly and effectively. This plan should include communication strategies to manage public perception and legal strategies to handle potential lawsuits.
One approach might be to plan a strategy to help companies navigate and ultimately mitigate these risks, but the only way to truly see change is to adopt an attitude of self-awareness. We have discussed the importance of ESG and the increasingly familiar lengths which some will go to in order to see these forms of litigation come to fruition. ESG litigation cannot simply become an afterthought to executives and decision makers within large organisations. To abide by this new way of operating, all behaviours that the company engage in need to be in accordance with the spirit of ESG; this is not a change that can be imparted overnight and will take time and, above all else, willingness to do so.
Additionally, many companies are likely to struggle with these changes when confronted with the reality that these developments are likely to damage their bottom line. The cases we have discussed tend to feature the idea that companies are failing to consider the effects of climate change or the negative impacts their practices could have on it.
The Future of ESG Litigation in the Legal Sector
As ESG principles continue to permeate the corporate world, ESG litigation will likely become a more prominent feature of the business landscape. The Wolters Kluwer Future Ready Lawyer Survey (2022) found that 50% of law firms across Europe and the US reported that they created an ESG practice area in the three years prior. Companies that fail to adapt to this risk significant legal and reputational damage, especially given that 67% of legal departments are now asking their law firms to provide their ESG policies and sustainability credentials, showing that this topic is deemed as important to clients as well as to those within the legal sector. Adrian Peyer the CEO of Impactvise stated that…
“Law firms need to get their own house in order if they do not want to run the risk of losing and not attracting new clients, “Until now, the ESG performance of a law firm has been ‘a nice to have’, but 2023 and beyond will move it to ‘a need to have”.
It is not far-fetched to imagine that those who proactively embrace ESG standards and demonstrate genuine commitment to sustainability and ethical practices will not only mitigate litigation risks but also position themselves as leaders in the new era of corporate responsibility.
To Summarise, the escalating trend in ESG litigation signals an imperative for companies to embed Environmental, Social, and Governance principles within their strategic framework. This integration is not merely a compliance exercise but a proactive manoeuvre to steer through the multifaceted landscape of corporate accountability. Companies that successfully align their operations with ESG imperatives are poised to not only mitigate legal risks but also build resilient, future-proof businesses, fostering sustainable growth that benefits both society and the environment. This foresight positions companies at the forefront of this transformative era, where corporate responsibility and sustainable value creation are fundamentally intertwined.
Increasingly, the ESG talent pool is becoming well defined. There is no single skillset that has enabled individuals to transition into ESG roles, in fact, the legislation captures a range of topics that means a degree of relearning needs to take place. Increasingly, ESG roles are determined by the reporting line of the function and can vary depending on the organisations internal structure. The role of a lawyer in the context of managing ESG related risk is undeniably an increasing priority for corporates.
If you would like to discuss your own career in ESG or the growth of your team, please reach out to Sershen Ingram – sershen@fidessearch.com
Generative AI is transforming various aspects of our lives, from writing emails and LinkedIn posts to creating whimsical images of pets as medieval royalty, revolutionizing corporate industries, and producing convincing deepfakes of politicians. As the landscape rapidly changes, many wonder about the future of generative AI. Is it taking over? Its integration into our daily routines suggests it might be. However, a more intriguing question to consider is, “What exactly does generative AI make of us?”
Ashurst has rolled out generative AI platform Harvey across all its offices worldwide, providing access to all its lawyers and business services staff.
Law firms including Gibson, Dunn & Crutcher, DLA Piper, Clifford Chance and Manatt, Phelps & Phillips are all members of the AI Safety Institute Consortium (AISIC), which also includes large corporations, AI creators, academics, industry researchers, nonprofits and others in addressing AI safety.
In late 2022, commercially available generative artificial intelligence tools saw an exponential increase in sophistication and ability, taking the legal world by storm. As the underlying models continue to involve and improve, these tools will become more powerful—increasing both their applicability to legal work and their implications for existing law in the process.
Paul Hastings has bolstered its London finance practice by recruiting Reena Gogna, a leveraged finance partner from U.S.-led rival Weil, Gotshal and Manges. Gogna, who has spent nearly a decade at Weil’s banking and finance practice, will join Paul Hastings in the coming weeks. Before her tenure at Weil, she was a partner at Latham & Watkins for over 11 years and began her legal career as a solicitor at Slaughter & May, where she worked for four years.
Eversheds Sutherland has recruited a partner from Osborne Clarke’s Amsterdam office to strengthen its corporate real estate capabilities in the Netherlands. Berend Zwart joined Osborne Clarke in 2018, according to his LinkedIn profile, after a decade at NautaDutilh and a brief period at RechtStaete Vastgoedadvocaten & Belastingadviseurs, a specialized Dutch firm of property attorneys and tax consultants.
Global law firm Dentons has recruited a construction partner from an Australian firm to expand its Melbourne office. Nathan Abbott, formerly with Colin Biggers & Paisley, brings expertise in construction and engineering law, advising on major projects and handling significant disputes.
In Hong Kong, Freshfields Bruckhaus Deringer has hired Tony Chow to lead its contentious insolvency practice in Greater China. Chow, formerly the director of restructuring and insolvency at King & Wood Mallesons, strengthens Freshfields’ restructuring team.
Simmons & Simmons has brought on Lijun Chui as a new dispute resolution partner in Singapore. Chui, previously a partner at Bird & Bird, specializes in cross-border commercial disputes and investigations in the TMT and financial sectors, including cybersecurity and data issues.
Ashurst has revamped its Indian practice with the hires of Kalpana Unadkat and Shishir Mehta from Khaitan & Co. They will co-head Ashurst’s India practice from London.
In Japan, Atsumi & Sakai has appointed Dio Inoue as a new partner. Inoue, formerly head of legal at Guardant Health, advises on medical, healthcare, and pharmaceutical matters, including IP, licensing, data protection, and unfair competition.
Freshfields Bruckhaus & Deringer has added Steven Matays, the head of the New York tax practice at Skadden, Arps, Meagher, Slate & Flom, the international firm said Thursday.
Brazil’s Demarest Advogados, one of Latin America’s largest full-service law firms, has strengthened its tax practice by recruiting Jerry Levers de Abreu from cross-town rival TozziniFreire Advogados.
DLA Piper’s newly launched São Paulo office has expanded with the addition of Violeta Libergott, a New York-licensed M&A counsel with nearly 15 years of experience. She specializes in cross-border M&A, joint ventures, and private equity transactions involving Latin American markets.
Clyde & Co has bolstered its presence in Chile by hiring Cristóbal Cibie as legal director. Cibie, a well-known tax lawyer with experience at international firms like EY and Baker McKenzie, specializes in cross-border transactions, project finance, and advising large corporations.
Michelle Reed, a co-head of Akin Gump Strauss Hauer & Feld’s cybersecurity, privacy and data protection practice, joined Paul Hastings as a partner in Dallas, where she intends to build a large team.
Davis, Polk & Wardwell has brought on White & Case partner Elena Millerman in New York as a partner and co-head of its infrastructure finance practice, the firm said Monday.
Porzio, Bromberg & Newman is launching a new technology practice, bringing on Jill Williamson, previously the managing attorney of the Seattle office of Eastern Washington-brd Gravis Law, to spearhead the firm’s dive into blockchain and cryptocurrency work.
Deloitte Legal has hired Vodafone Group’s former general counsel in London. Rosemary Martin was Vodafone’s GC for more than 12 years, having joined the telecoms giant in 2010, retiring in 2022.
A longtime banking and finance partner at one of the Netherlands’ largest firms is set to become the country’s next state secretary for legal protection. Teun Struycken, a partner in NautaDutilh’s Amsterdam office, was put forward for the role by NSC, a center-right Dutch party.
Paul Hastings is bringing on a 12-lawyer, three-partner global litigation team from a prominent litigation and investigations boutique in Paris. The group is led by veteran white-collar and investigations partner Antonin Lévy, who brings along partners Ophélia Claude and Joris Monin de Flaugergues, both also joining as partners. They will be accompanied by nine associates.
International law firm Baker McKenzie has hired a five-lawyer banking and finance team from Cliffe Dekker Hofmeyr (CDH) in Johannesburg as part of the firm’s expansion plan.
Lerisha Naidu, Baker McKenzie Johannesburg managing partner, said the new joiners have an impeccable track record of leading in banking and finance transactions in Africa.
Paul Weiss has introduced a new U.K. training contract, supporting its rapid expansion in London. The firm will offer newly qualified lawyers £180,000, matching the top pay of U.S. firms Quinn Emanuel and Gibson Dunn.
Macfarlanes has joined the fray in the latest NQ pay war by increasing its newly qualified salaries to £140,000 from £115,000, the biggest proportionate rise so far.
Stephenson Harwood has kicked off the financial results season, posting a 16% rise in revenues and a 10% increase in net profit for the financial year ending April 2024. The firm recorded revenues of £264.2 million, while net profit is up to just over £90 million, an additional £7.6 million on last year’s showing. Meanwhile, profit per equity partner has also increased to £775,000, an uplift of 7%.
Claudia Salomon, a former arbitration partner at Latham & Watkins in New York, has been re-elected for a second three-year term as president of the International Chamber of Commerce’s International Court of Arbitration in Paris.
Richard Sterba has been named as office managing principal of Fish & Richardson’s D.C. office. Sterba succeeds Lauren Degnan, who will focus on co-leading the firm’s newly formed appellate group.
Grandall Law Firm has broken into the Malaysia market via a tie up with local practice Richard Wee Chambers in Kuala Lumpur. The Chinese firm’s latest launch in Southeast Asia follows its recent opening in Madrid.
As we enter mid-2024, Cooley’s arbitration chair Charlie Lightfoot and associate Juan Nascimbene highlight four key developments shaping the field for 2025.
Latin America practice lead Leticia Ossa Daza discusses why she made the leap after a long run at Willkie Farr. “As a lawyer, this is the most exciting place to be right now,” Ossa Daza told Law.com International after the move. “The way they look at clients and add value to them creates a stickiness that goes beyond legal work.”
Today, it’s widely understood that the ‘Magic Circle’ brand is outdated; if observers came to the market anew, it’s unlikely they’d identify the quartet as particularly deserving of special designation. But…the four do still rank top for U.K. revenue.
Simpson Thacher & Bartlett, Kirkland & Ellis, Latham & Watkins, Skadden, Arps, Slate, Meagher & Flom and Weil, Gotshal and Manges lead the rankings, as they did last year, in a table calculated by dividing the largest 30 firms’ U.K.-only revenues by their U.K. lawyer headcount.
Private equity is thriving in Japan, in part because the weak Japanese yen has made local assets incredibly appealing to foreign investors. Foreign law firms want a piece of the action.
During Pride month, the importance of workplace transparency is widely discussed. Despite growing awareness about the experiences of LGBTQ+ individuals in the legal profession, many lawyers still hesitate to disclose their LGBTQ+ identity at work.
Aditi Srivastava, a Linklaters lifer, is a partner in the firm’s structured finance practice. She first made partner in 2022, is currently based in the firm’s London practice, but has also spent time in Dubai. The firm describes Srivastava as “passionate” about diversity and inclusion matters, having been involved in a variety of the firm’s LGBTQ+ initiatives.
Representation of people identifying as LGBTQ+ at associate and trainee level continues to outpace partner level, fresh U.K. data shows, as U.S. law firms once again dominate tables.
As Mental Health Awareness Month concludes, it seems pertinent to take some time to discuss the topic of mental health, particularly in relation to the legal sector and the professionals who navigate it.
Historically, the legal profession has been synonymous with stress, long working hours, competition, and, depending on your area of expertise, exposure to traumatic or emotionally challenging situations. These realities have meant that lawyers have been no stranger to mental health related issues such as increased levels of stress, anxiety, depression, and/or burnout. According to a 2021 survey conducted by an insurance firm, attorneys are the second most stressed category of professionals in the UK, with 63% of the legal field suffering everyday stress. Though this data is three years old, the question remains whether the issue is one of the past or one that needs to be addressed in the present-day legal field.
Firstly, we can see that mental health has increasingly become a point of conversation within the legal sphere, whether this be an emerging culture of self-care that has developed within society at large, or the initiatives which have been put into place by law firms in order to create an atmosphere of well-being within some of the world’s most prevalent law firms. We even see the rise of mental health charities and schemes coming into fruition throughout the legal sector such as Jonathan’s Voice, which is a charity that aims to reduce the stigma associated with mental health issues and inspire people to seek help and open up, and the MHFA initiative which has provided mental health training and resources to over 20,000 organisations. But questions do remain: How useful have these initiatives been and is there more that can be done to combat this prevailing issue?
A study that was conducted in 2023, which centred the link between lawyers’ stress and suicidal thoughts, found that 66% of respondents believed that their time in the legal profession has proven detrimental to the state of their mental health, with 46% of them reporting that they were considering leaving the profession completely due to copious amounts of stress. Furthermore, data from a Mental Health Survey that was conducted by ALM and Law.com found that 38% of lawyers said that they were feeling depressed. This figure is alarmingly high, and is made worse when we consider that in 2021 the same question was asked and the data reported that at the time 37% of the lawyers were feeling depressed. Whilst this isn’t a huge increase, it implies that the problem is not necessarily a thing of the past nor something that is simply just going to get better over time.
So, what can be done about mental health in the legal sector?
One thing that cannot be understated is the importance of self-awareness and self-care. This remains important across all industries and walks of life, but in relation to lawyers who work extended hours, often balance multiple cases and projects at once, and deal with sensitive subject matters, it is crucial to assess regularly and take the necessary steps to mitigate stress.
Some of the recommended improvements:
Noticing when you are experiencing burnout and taking a break from work.
Getting a proper sleep at night.
Maintaining a healthy lifestyle by focusing on a proper diet and (dare we say it) reducing the intake of alcohol.
Receiving your recommended amount of daily physical activity.
These are all proven ways to mitigate the risk of mental health problems. Studies show that adults who have half the recommended amount of physical activity per week had a 18% lower risk of suffering from depression compared to those who received no physical activity per week.
Another way that many experts argue is beneficial, is to vocalise your struggles as they begin to surface. Prevention is decidedly better than cure. Current societal and cultural norms have shown that lawyers are becoming more comfortable discussing the state of their mental health and are utilising platforms like LinkedIn to express this in a more public manner. Other ways can be by confiding in family and friends but also by seeking professional counselling, joining support groups with likeminded lawyers, such as the London Solicitors Litigation Association, who encourage the development of relationships between lawyers of all levels and positions. Also, many suggest opening up to colleagues and managers. Practices such as this are quite frankly a new phenomenon. However, we cannot deny that there has been a clear increase the number of lawyers who are becoming more comfortable with discussing their mental health. The mental health and wellbeing charity LawCare reported that over the last year there had been a 24% increase in the number of people who have been contacting them. These trends are positive and show that there is a growing sense of pro-activeness by individuals in the legal industry and by external groups in order to create safe spaces, which in turn will have a positive effect on the state of mental health as a result. However, what are law firms doing to help the progress of this cause?
A study on Mental Wellbeing in the legal profession that was carried out by the International Bar Association in 2021 found that 41% of employees were reluctant to discuss their mental wellbeing or concerns regarding their mental health due to fear that it would have a negative impact on their career. This might be a familiar feeling to many within the legal industry, which is notoriously competitive, and statistics show that 32.1% of professionals within the legal industry do not speak out as a result of fear that they will be treated differently if they do due to stigma surrounding mental health and immense pressure to perform and meet clients’ expectations. Whilst this attitude and culture has been the norm up until now it is becoming widely acknowledged that a new approach needs to be implemented across law firms. The legal profession is one that holds prestige, as the work can be challenging and the demand for excellence is constantly made apparent to those who navigate it. However, there has been a growing impetus placed on creating a balance between the pursuit of excellence and the well-being of individuals and many firms are striving to implement healthy cultures where individuals can feel more at ease when opening up about their wellbeing.
Traditionally, leaders within law firms felt as if the only way to achieve success is to appear endlessly capable of exceeding expectations. This perception tends to diffuse across the whole ecosystem of the firm and seeps into the behaviours of other partners, fee-earners, paralegals, legal assistants, and professional staff thereby creating a stifled environment where no one feels free to open up and subsequently no change can be achieved. Whilst this is not necessarily an issue that can be resolved overnight, it is pivotal that steps are taken to mitigate this. As the saying goes “change comes from the top”. An article by Reuters states that “when senior leadership models openness and vulnerability around their own lived experience, it creates a positive environment for those who are considering the benefits and consequences of asking for support”. The impact of this cannot be understated and goes a long way towards the creation of safe spaces within firms.
The reality of this is that once leadership within firms acknowledge the need for change in this area, there will still be much room for improvement in terms of actioning these new ideas. The International Bar Association found that in 2021, 82% of institutions reported that they take mental health seriously, however only 16% provide adequate training for senior management. As we have established, change has to start from the top which is why it is important that we keep up the momentum through these conversations to inform leaders within law firms and legal bodies about the importance of this discourse and how imperative it is for them to be in the know about ways they can help create better atmospheres within their practices.
Once adequate training has been provided to leadership, many believe that it would be useful for the same thing to be experienced by other members of the team; if everyone within a firm is aware of a problem it becomes easier to mobilise and address it accordingly. With this shared understanding, more practical initiatives, such as team building activities and reward incentives, can be implemented to motivate people and create a positive environment. A team with a stronger community and culture is more likely to produce members who are willing to share their feelings. Furthermore, mentorship schemes can be of a great help, specifically to junior lawyers and lawyers transitioning through different phases or career milestones where one can experience notions such as anxiety and imposters syndrome. This form of mentorship would allow them to have questions answered, a friendly face to turn to, and overall feel more like they are part of the team. Furthermore, regular mental health check-ins mandated by law firms would demonstrate consistency and aid in the prevention of significant problems. Overall, teamwork and early action are recurring themes that help businesses succeed.
Pressure from clients has been established as a contributing factor when discussing the stress individuals within the legal sector feel. Recently, clients have become more and more informed and sensitive towards the wellbeing of their legal representatives. The reasons clients are becoming increasingly aware is in part down to their own experience of the law firms and a drive within corporates to tackle such issues. The legal sector much like many other industries is reliant on people to be able to carry out often mentally taxing work to a very high standard and for sustained periods of time. This reliance on the individual means there must be an emphasis placed on well-being, and it is simply unsustainable to think otherwise.
Can lawyers and other legal professionals carry out high quality work so frequently, with no breaks, absent consideration for their mental state or emotional support? The data we discussed previously shows an increasingly large percentage of professionals facing these problems on a daily basis, with such a large number affected how could the industry hope to thrive in this modern era. Subsequently, if success is to be achieved, all parties must understand that key balances and measures must be taken to protect the wellbeing of all that are involved in these processes.
Overall, we can see that there has been a dangerous culture which minimised the issues of mental health and wellbeing within the legal industry. It is clear however, that this culture is beginning to subside, and the industry is looking towards more support for its people. But we must remember to maintain momentum and recognise that this race is not for the swift – as we usher in a new and improved way of engaging in the legal sector, teamwork, openness, and early action are critical.
In the ever competitive ‘Big Law’, lateral recruitment serves as a strategic avenue for growth. However, ensuring the right fit goes beyond resumes and interviews. Enter Third-Party Due Diligence (DD), a tool aimed at supplying law firm leadership with a comprehensive appraisal of a partner candidate or lateral team. Too often law firms have recruited talent that, on paper and during the interview process, seem right but simply do not end up being right. This, we feel comes down to a number of manageable factors. The level of investment from clients in hiring laterally goes far beyond the purely financial with cultural and reputational risks being attached to any lateral hiring process.
Simply put we aim to de-risk the hiring process and in turn help our clients make informed decisions around their lateral talent, saving their time, money and, most importantly, their reputation.
The Process Simplified:
Scope Definition: We take instructions on DD where we have not been the search partner involved in procuring candidate/team or where the firm has been in direct communication with the candidate/team. As with all our services we take conflicts very seriously and we will not, under any circumstances take on a project with a conflict. We step in after the candidate has submitted their Lateral Partner Questionnaire or Business Plan material and the hiring partner or sponsoring partner have completed all internal business planning material.
Data Collection: We engage with former colleagues, peers and clients. We target those individuals that have intimate knowledge around the candidate. The Fides advantage here is that, as a search firm, we are regularly engaging with key stakeholders in the market. This enables us to ask the right questions, whilst simultaneously maintaining discretion, when engaging with sources.
Comprehensive Analysis: We meticulously analyse data to assess, amongst others, relevant market insights; legal skills & technical ability; business development skills; leadership and management skills; value-add and wider firm contribution; personality & culture; and integration recommendations.
Review: Findings are presented either verbally, or in the form of an executive summary to be shared with internal stakeholders.
What’s Tested and Asked?
Relevant Market Insights – the context behind the investment
Legal Skills & Technical Ability
Business Development Skills
Leadership and Management Skills
Value Add and Wider Firm Contribution
Personality/Culture
Integration issues/recommendations
Conclusion:
Third-party Due Diligence is essential in ensuring the right fit in lateral recruitment within law firms. By providing a comprehensive assessment beyond traditional methods, it enables firms to make informed decisions and mitigate risks.
Law firms are frequently hiring applicants who have a limited scope for growth within the firm, are not properly vetted, or who make promises that are not inline with reality. The lack of a robust hiring procedure raises concern amongst stakeholders, exposes leadership to selection issues, and may impact the wider perception of a firm in the market, discouraging future prospects. While the exact cost of failed lateral hires is difficult to determine, it is estimated that firms sustain considerable financial losses each year as a result of underperforming partners, ranging from seven to eight figures, with many being lateral hires.
Conversely, strategically chosen lateral personnel can make a significant contribution to a company’s future success. Thus, the risk can be worth it, but reducing risk requires the development of appropriate systems and procedures.
The year 2023 was a dynamic and competitive one for the big law market, as firms sought to expand their capabilities, attract top talent and increase their profitability. Here are some of the key trends and developments that shaped the legal landscape in 2023.
Lateral hires: The demand for experienced lawyers remained high, especially in practice areas such as corporate, litigation, intellectual property, antitrust and regulatory. Many firms made strategic lateral hires to strengthen their existing teams, enter new markets or diversify their services. Some of the notable lateral moves in 2023 were:
– Chris Thel and team of 6 others joined K&L Gates as partners in the corporate and private equity practice, after leaving Dentons. Thel and team are all leading Corporate lawyers who are recognised as leaders in the private equity, tax, M&A/transactions, and benefits and exclusive compensation areas.
– Michael Urschel and a team 9, 2 partners and 7 associates left King & Spalding to join Milbank in the Structured Finance Practice. Urschel’s group is renowned for focuses on whole business and digital securitisations.
– Neel Sachdev was unarguably one of the biggest London lateral moves this year, hailed as one of London’s last rainmakers he left Kirkland to Paul Weiss this was one of the biggest power grabs with Neel and team resigning on an August Sunday, this saga of moves between the two firms has had us gripped since August and the dust is still yet to settle, the current count is 35 lawyers following Neel with the latest two moving last week.
Financials: The big law market continued to grow in 2023, as firms reported higher revenues, profits and profits per partner (PPP). According to the American Lawyer’s annual ranking of the top 100 U.S. law firms by revenue, the total revenue of the Am Law 100 increased by 7.5% to $115 billion, while the average PPP rose by 8.2% to $2.7 million.
PwC UK summarised that the legal sector as a whole has had a very strong year with firms achieving an average of 8-10% fee income growth and firms remaining largely optimistic about future growth. However, the last year has continued to be turbulent with ongoing macroeconomic volatility, increasing cost pressures, and high inflation. Next year, pricing will remain a key focus area as cost pressures could lead to a fall in profits.
Mergers: The big law market witnessed several mergers and combinations in 2023, as firms sought to enhance their global presence, broaden their practice areas, and leverage their synergies. Some of the major mergers and combinations in 2023 were:
– Allen & Overy and Shearman & Sterling was the biggest merger of 2023, the deal is worth $3.4 billion and created one of the largest legal practices in the world with approximately 3950 lawyers and 800 partners across 48 offices. This huge transatlantic deal is expected to close in May 2024.
– Holland & Knight were the first big 2023 merger when in January it was announced that they would be merging with Nashville based Waller Lansden Dortch & Davis. The deal created a firm of nearly 2000 lawyers operating under the Holland & Knight name, as a firm that has consistently grown through mergers it will be very interesting to see where Holland & Knight grows next.
– Fieldfisher announced December of this year that they would be ending their seven-year arrangement with Italy’s SASPI, due to ‘’strategic objectives no longer being closely aligned”, does this mean that we should expect to see a new merger or alliance from Fieldfisher next year in the region?
The annual PwC law firm survey has showcased the developments for firms within the last year and noted the general trends across the industry in recent years. With a particular focus on four areas across financial performance, people, working capital, and strategy/transformation, here are the main things reported for 2023:
1. Financial Performance
Although the last few years were profitable for law firms, the industry has faced several challenges within the last year. Globally, firms have been impacted by geopolitical factors, including the Russia/Ukraine war; within the UK, firms have further faced a cost-of-living crisis and numerous increases in interest rates, with a UK peak in October 2022 of 11.1%. The shift these have caused in market conditions and deal activity has impacted the financial performance of law firms.
The survey suggests that although income growth was achieved across the sector, this is generally sitting below inflation. For example, across the Top 100 bandings, average UK fee income growth was between 8.0 but costs have increased for staff, property, marketing, and technology, limiting overall net profit margins. As a result, 44% of the Top 100 firms have reported a drop in profits, reportedly one of the biggest drops in recent years.
Regardless, firms remain optimistic for the next period of growth, with all Top 100 firms anticipating some increase in profit for the coming year. Overcoming the impact of cost inflation and pricing is likely the main challenge firms will face in accomplishing this.
2. People
Most law firms have continued to grow headcount across fee-earners and business services, with growth ranging from 2% to 4.6%. Firms report that they are placing particular emphasis on evaluating the size and shape of their workforce, aiming to hire skillsets which align with the industry’s shift towards digitalisation, as well as those which can fill skill gaps in areas such as change and leadership.
Considering one aspect of diversity and inclusion, the survey has noted an increasing trend in female representation at full equity partner level, rising in the range of 0.8% to 2.3% across the Top 100 firms.
With a general slowdown in recruitment, firms report that they will be adopting less aggressive hiring tactics to match reduced demand within certain practice areas. Where they continue to hire, they will focus on talent within practice areas that are growing to minimise the spare capacity arising from reduced hiring.
3. Working Capital/Financing
Assessing priorities for 2023, over 50% of the top firms report improving working capital performance is at the top of their list. Notably, it barely featured in past years but has been bolstered by high inflation and interest rates.
Following this, their next highest priorities – standardising and centralising performance, and increasing the use of data analytics – also support improving working capital performance. This is mainly because year-end lock-up levels have seen very little improvement; to overcome this, firms will need to sustain performance throughout the year rather than emphasising billing performance at the year-end.
The survey predicts firms will also be utilising extended funding and capital calls to improve working capital. Additionally, firms will be checking operating models for business support to build working capital across all service lines.
4. Strategy and Transformation
The survey allows us to conclude there are four key threats to law firms in the upcoming year. The first is macroeconomic volatility. Despite the pandemic in recent years, most firms reported they were still unprepared for the impact of Russia and Ukraine.
The second is cybersecurity, which has been a consistent trend throughout the shift towards digitalisation and AI. Firms report concerns about how to protect client data and information under GDPR when trialling new AI.
The third is cost inflation. Firms are unlikely to recuperate increased costs by simply increasing their chargeable hours or rates. Instead, potential solutions span improving client and account management, hiring rainmakers, and building up focused practice groups.
The fourth is a shortage of talent. To deal with this, 73% of the firms report they will be implementing commercial training. They also add that they will be making long-term investment decisions for recruitment and staff retention; in particular, they note the market seems to be shifting towards the contentious space.
In discussing transformation, up to 79% of firms report they recognise the positive impacts that AI can have on the legal sector. However, the level of implementation ranges across firms, with firms citing tech costs, GDPR concerns, and failed trials as some of the reasons why they are reluctant. In particular, we can note that for smaller firms focusing on growth (and even for larger firms focusing on increasing working capital), the pricing of AI can be quite unsustainable. However, as the industry shifts towards an overall transformation, we may see tech offerings become more widely available and cost-friendly, so the survey reports this is a space to watch.
We are delighted to share some exciting news from Fides Search! Four of our talented team members have been promoted to new roles, reflecting their hard work and dedication.
🎉 George Eves – Researcher to Delivery Consultant
🎊 Gwendolyn Shaw – Delivery Consultant to Consultant
🎉 Mathew Parker – Consultant to Senior Consultant
🎊 Inka Fukalova – Head of Research and Delivery to Associate Director
Please join us in congratulating them on their achievements!
Let’s see what Edward Parker our Managing Director had to say on the news:
George joined Fides just under a year ago and has been a tremendous asset since the get-go. His approach to onboarding new information, focus on outcomes for clients and ability to work across different international markets sets him apart. He has now been involved in projects across the UK, Ireland, Germany, and Luxemburg and has developed an exceptional level of understanding of complex markets like Funds and PE. I am delighted to see George progress into the Delivery team and look forward to working with him closely.
Gwendolyn joined us as a researcher and was promoted within 12 Months to Delivery Consultant. During that time I had the pleasure of working closely with Gwen on several successful high-profile searches, numerous Due Diligence exercises and several consultancy projects. It is exciting to see her reach yet another milestone and be promoted to the Consultant team. Gwen has developed exceptional market knowledge, knows the search process inside out and she is tremendous to work with. She is totally deserving of this promotion and I am delighted to be welcoming her into the consultant team.
Mathew joined Fides in July 2020, at that time the conditions were somewhat different to those that we have today. He developed his skillset in one of the toughest markets for search but still managed to achieve a great deal. He progressed very quickly up the consultant ranks and has outperformed even his own exceptionally high targets. Mat has had a focus on highly competitive areas like Digital, Data, TMT, Tech Transactions, PE etc, he has also worked across numerous jurisdictions including the UAE, Dublin, Germany and London. His commitment to clients and consultative approach help him to stand out in a busy market and clients regularly feedback on how impactful he has been. He also demonstrates the qualities of a leader and is someone who will go a very long way in this industry. I’m very excited to continue to work with Mat and to see him step into the role of Senior Consultant.
Inka joined us as Head of Research and Delivery and in so doing created a new function for us, prior to Inka’s arrival we’d never had a delivery function and her joining the business was a pivotal moment in training and developing talent a first for Fides. Inka’s approach to operational rigour and delivering the highest quality search to our clients has enabled us to become even more data-led outcomes-focused and to successfully manage a higher volume of searches. I’m delighted to see her step into the role of Associate Director where she’ll take on more leadership responsibility but more crucially keep supporting clients with their searches and leading a vital part of the business.
The merger between Allen and Overy and Shearman and Sterling has been voted in favour of.
As you may have heard, these two firms have been in discussions for some months, exploring the possibility of creating a global powerhouse in the legal industry. This comes after both firms failed to secure other merger deals with Hogan Lovells and O’Melveny respectively.
This is an exciting development and will fundamentally change the offering of a Magic Circle firm. The combined firm would have a strong presence in key markets, such as the US, Europe, Asia and the Middle East, and would offer a full range of services to clients across various sectors and practice areas. The merger would also create opportunities for our staff to work on high-profile and complex matters, as well as to collaborate with talented colleagues from different backgrounds and cultures.
As we wait to hear more about the synergies and client benefits of the merger, we would like to update you on some of the recent announcements. Namely, that the leadership team of the new firm is likely to include more Allen and Overy partners, with a limited number of places allocated to Shearman and Sterling. This reflects the relative size and profitability of the two firms, as well as the strategic vision of the merger. Allen and Overy have also been in the news for their collaboration with Harvey, an AI provider that helps lawyers automate tasks and improve efficiency.
We hope that this has given you some insight into the potential merger and its implications for our firm. We will keep you informed of any further developments as they arise. In the meantime, please do not hesitate to contact us if you have any questions or concerns.
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