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  • September 24, 2008 | International Edition

    Commentary: Linklaters finds many silver linings on Wall St's cloud

    With every day last week seemingly heralding news, or at the least rumours, of another shock bank collapse/rescue, there are clearly better times to be a lawyer in the financial services sector. But for Linklaters it seems this particular cloud has a silver lining. Rafts of firms have managed to win substantive roles in the transactions but in the UK, only Linklaters has managed to secure key positions on all three deals to date.The firm has a team of around 20 partners acting for PricewaterhouseCoopers as UK administrator on Lehman Brothers' collapse in addition to a separate team advising Lloyds TSB on its takeover of HBOS. The firm is also advising Merrill Lynch on UK aspects of its takeover by Bank of America.

    1 minute read

  • September 24, 2008 |

    Commentary: Linklaters finds many silver linings on Wall St's cloud

    With every day last week seemingly heralding news, or at the least rumours, of another shock bank collapse/rescue, there are clearly better times to be a lawyer in the financial services sector. But for Linklaters it seems this particular cloud has a silver lining. Rafts of firms have managed to win substantive roles in the transactions but in the UK, only Linklaters has managed to secure key positions on all three deals to date.The firm has a team of around 20 partners acting for PricewaterhouseCoopers as UK administrator on Lehman Brothers' collapse in addition to a separate team advising Lloyds TSB on its takeover of HBOS. The firm is also advising Merrill Lynch on UK aspects of its takeover by Bank of America.

    1 minute read

  • September 24, 2008 |

    Rewarded by results

    The recent decisions of several law firms to bring in merit-based pay systems for assistants have led some in the profession to speculate that pay based on post-qualification experience (PQE) might have had its day.We investigate the arguments for and against merit-based pay, look at how firms evaluate performance and speak to assistants to gauge their views on the topic.Merit versus PQENorton Rose recently made the move to implement merit-based pay at all levels from newly-qualified (NQ) upwards, replacing the traditional PQE gradings with a three-tier system that divides assistants into categories known as Associate 1, Associate 2 and Senior Associate. Assistants are paid and charged out according to the new categories.Managing partner Deirdre Walker explains the reasoning behind the firm's decision to adopt the model. "The PQE approach is antiquated and often simply not fair. Why should a really excellent one- or two-year qualified lawyer earn less than someone mediocre who just happens to have more experience than they do?" She adds that recently introduced age discrimination legislation played a part in the decision. "It was a factor, but not the driving one. As I understand it, legal opinion is still very much divided on whether PQE will fall foul of the new laws."David Gray, managing partner of Eversheds, which is in the process of bringing in performance-related pay for its assistants, also downplays the significance of the legislation. However, he believes that it is important to have a remuneration structure that allows flexibility in terms of how mature assistants are paid. "Say you have one three-year PQE who has 15 years' experience in another profession and is very capable with clients, and another who has come straight from university. Clearly it is a good idea to have a pay structure in place that allows you to pay the first guy more."Ashurst is another high-profile merit-based pay convert, while across the Atlantic, Howrey became the first firm in the US to adopt a totally merit-based structure earlier this month.

    1 minute read

  • September 24, 2008 |

    It's bonus time

    Since bonuses were introduced by law firms in the late 1990s as a way to limit the long-term effects of salary inflation, amounts paid out - and the hoops that assistants have to jump through in order to get their hands on the cash - have varied wildly between firms. Some firms give tens of thousands of pounds to assistants regardless of individual performance, while others require Olympian levels of all-round commitment in return for sums that could probably be more easily obtained through a few after hours' shifts at the local pub.

    1 minute read

  • September 23, 2008 |

    Herbert Smith powers up with £12bn EDF role

    Herbert Smith is advising EDF on the French energy giant's planned $12bn takeover of British Energy (BE) which is expected to close this week. A large Herbert Smith team has been working on the bid, with energy and natural resources partner Mark Newbury and corporate partner Michael Shaw at the helm. Both the Paris and the London office have been working on the deal.Legal Week previously reported that a raft of City firms were lining up for roles in the deal with Clifford Chance (CC) taking the lead mandate for BE.

    1 minute read

  • September 18, 2008 |

    Northern Rock causes Treasury to clock up £7m costs

    The UK Treasury racked up almost £7m in legal costs during the nationalisation of Northern Rock. The Treasury, which turned to elite City law firm Slaughter and May for advice on the banking debacle, spent £6.85m during the 2007-08 financial year on legal costs directly relating to Northern Rock.The fees, revealed in the Treasury's annual accounts, show legal costs were almost double those for the financing, which came in at £3.9m.In total £11.6m worth of professional fees were amassed while Northern Rock was taken under government control. Slaughters brought in partner Charles Randall to lead on the deal, which also handed major roles to other City firms including Freshfields Bruckhaus Deringer, which acted for the bank itself.According to the accounts, the Treasury expects to continue to incur further professional fees during the period of temporary ownership, which will be recharged to Northern Rock, the Bank of England (BoE) or the Financial Services Authority (FSA).

    1 minute read

  • September 18, 2008 | International Edition

    Northern Rock causes Treasury to clock up £7m costs

    The UK Treasury racked up almost £7m in legal costs during the nationalisation of Northern Rock. The Treasury, which turned to elite City law firm Slaughter and May for advice on the banking debacle, spent £6.85m during the 2007-08 financial year on legal costs directly relating to Northern Rock.The fees, revealed in the Treasury's annual accounts, show legal costs were almost double those for the financing, which came in at £3.9m.In total £11.6m worth of professional fees were amassed while Northern Rock was taken under government control. Slaughters brought in partner Charles Randall to lead on the deal, which also handed major roles to other City firms including Freshfields Bruckhaus Deringer, which acted for the bank itself.According to the accounts, the Treasury expects to continue to incur further professional fees during the period of temporary ownership, which will be recharged to Northern Rock, the Bank of England (BoE) or the Financial Services Authority (FSA).

    1 minute read

  • September 17, 2008 |

    LPC consortium to send all trainees to BPP

    The City Legal Practice Course (LPC) consortium of Freshfields Bruckhaus Deringer, Herbert Smith, Lovells, Norton Rose and Slaughter and May have chosen BPP Law School as the sole provider of the Graduate Diploma in Law (GDL) for their trainees. The firms begin their association with the law school from September 2009.

    1 minute read

  • September 16, 2008 | International Edition

    Slaughters to launch in Beijing with best friends

    Slaughter and May is set to open an office in Beijing with two of its European best friend firms. The magic circle firm is planning to open the office by mid-2009 with Dutch ally De Brauw Blackstone Westbroek and Spain's Uria Menendez set to share the space. The office will be Slaughters' second in Asia, as it already has a longstanding base in Hong Kong.

    1 minute read

  • September 16, 2008 |

    Slaughters to launch in Beijing with best friends

    Slaughter and May is set to open an office in Beijing with two of its European best friend firms. The magic circle firm is planning to open the office by mid-2009 with Dutch ally De Brauw Blackstone Westbroek and Spain's Uria Menendez set to share the space. The office will be Slaughters' second in Asia, as it already has a longstanding base in Hong Kong.

    1 minute read