Inside Track: GCs And CFOs Working More Closely Than Before. Plus, Wells Fargo's GC Remains The Interim CEO.
Chief legal officers and chief financial officers are collaborating more at work, according to accountants, while Wells Fargo's top lawyer still sits at the troubled bank's helm amid a permanent CEO search approaching its six-month mark.
August 07, 2019 at 06:05 PM
7 minute read
Welcome back to Inside Track!
The Association of Corporate Counsel announced last week it is supporting the proposed Admission and Discipline Rule 6.2 of the Indiana Rules of Court. This rule would allow in-house counsel who practice on a business counsel license to participate in pro bono legal services.
However, the language in the rule, the ACC says, restricts the kind of pro bono work that those with a business counsel license can participate in.
Right now, the rule would allow those lawyers with a business counsel license to only participate in pro bono services through a pro bono or other legal services organization.
“This is fundamentally a question of providing the most opportunities for pro bono service,” said Mary Blatch, senior director of advocacy at the ACC. “We appreciate the proposal to allow in-house lawyers with business counsel licenses to provide pro bono and encourage the Court to go further by removing the requirement in Rule 6.2, Section 1(b), that pro bono services must be provided by a legal service or pro bono organization.”
The ACC cited a 2016 report from the Pro Bono Institute, which found that law firms usually partner with corporations for pro bono services rather than organizations providing pro bono legal services.
“We urge the Court to modify Rule 6.2 to increase the ability of business counsel licensees to provide needed pro bono services. In-house counsel can and do answer the pro bono call. By adopting a modified Rule 6.2, this Court can remove obstacles in the path to them doing so,” the ACC said in a letter to Indiana’s high court.
Is there anything in your state preventing in-house counsel from participating in pro bono work? Let me know by emailing me at [email protected].
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What’s Happening
Law + Finance = Collaboration
The role of the general counsel has evolved over the past decade. Part of that evolution is having a better relationship with the company’s chief financial officer, according to a report from Law.com reporter Caroline Spiezio.
Greg Rahn, a CPA and partner at Hemming Morse, said companies operate best when legal and accounting are on the same page.
“It’s very important that they work very closely with each other … In case it’s implied that there might be any type of competition, I don’t see that,” Rahn said. “I think in fact, the backgrounds are so distinct, they very much see each other as a really critical resource.”
Rahn said CFOs and GCs have taken on more strategic and operational responsibilities.
“The general counsel and CFO are saying, ‘Hey, we can do that. Meaning I’m not just a cost center. I’m not just a ‘no’ person. I’m somebody who has a tremendously strong professional background, leadership skills. I’m in the C-suite for a reason,’” Rahn said.
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Still The CEO
Wells Fargo’s general counsel, C. Allen Parker, was named interim CEO of the bank in March. At the time, the bank said Parker would not be made the permanent CEO. Now, a company spokesperson said there are no updates on a new CEO.
Law.com reporter Sue Reisinger wrote that there has been speculation Parker should receive the full-time role. However, federal regulators would still like someone from outside of the bank to take over.
When asked if the lack of a permanent CEO has hindered progress, Federal Reserve Board chairman Jerome Powell said the bank’s issues run deep and they will not be fixed overnight.
“The problems at Wells Fargo that arose around risk management and the way they dealt with [consumers], are actually pretty deep, and I think the company realizes that, and they haven’t been fixed quickly. Frankly, we didn’t expect them to be fixed quickly,” Powell said.
Making Parker the interim CEO of the company is part of an increasing trend of lawyers being appointed to the top of the C-Suite and other executive positions.
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What I’ve Been Reading
Alan Yarbro, the former general counsel for Mercantile Bankshares Corp., passed away from Alzheimer’s disease in July according to a report in The Baltimore Sun. After leaving Mercantile, he worked at Venable LLP and was described by a former partner at the firm as “one of the most gifted lawyers at the firm.”
The California Consumer Privacy Act will reach well beyond the coastlines of California, according to a report in Courthouse News Service. An issue often misunderstood is the law applies to all companies that do business in California, the report said. Mary Race, a partner at Morrison & Foerster, said corporations should be taking into consideration whether or not they are impacted and how to comply with the complicated law. The CCPA will take effect in January 2020.
The chief legal officer of Reform Alliance spoke to KYW Newsradio in Philadelphia while rapper Meek Mill was in a status hearing for his drug and gun case. Monique Haughton Worrell, CLO of Reform Alliance, told the radio station that the purpose of Reform Alliance is more than helping Meek Mill. She said “there are more Meek Mills out there, and we want to find out who they are.” Haughton Worrell said the organization plans on beginning outreach efforts in Pennsylvania and then in Georgia.
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Don’t Miss
Thursday, Aug. 29 – The Barristers Club Diversity Committee and Airbnb will be hosting an In-House Diversity Attorney Mixer. The event will take place from 5:30 p.m. to 8 p.m. at the BASF Conference Center in San Francisco.
Wednesday, Sept. 25 to Thursday, Sept. 26 – Corporate Counsel will be hosting its annual General Counsel Conference at the New York Marriott Marquis. Speakers this year include Peter Gyr, global general counsel, wealth management at JP Morgan Wealth Management; Graham Luce, general counsel at BJ’s Wholesale Club; and Megan Ryan, general counsel at NuHealth.
Monday, Oct. 14 to Wednesday, Oct. 16 – The Minority Corporate Counsel Association will be hosting its Creating Pathways to Diversity Conference in New York at the New York Hilton Midtown. The MCCA will host a Diversity Gala on the last night of the conference at the American Museum of Natural History.
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On The Move
✦ American Airlines ✦ Priya Aiyar, a former Big Law partner, has been named general counsel of the airline. Before joining American Airlines, Aiyar worked as a partner at Willkie Farr & Gallagher. She succeeds Paul Jones who retired earlier this year.
✦ Eightfold ✦ Roy Wang was named as the top lawyer for the artificial intelligence-based talent recruiting platform. Wang previously worked as an attorney at Kirkland & Ellis and at Wilmer Cutler Pickering Hale and Dorr.
✦ DART ✦ Gene Gamez has been promoted to general counsel of Dallas Area Rapid Transit. He joined DART nearly 19 years ago and handled state and federal litigation issues for the company. He has previously served as assistant district attorney in the Dallas County District Attorney’s Office.
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