The Conundrum of Firing Your Company's GC: The Morning Minute
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November 04, 2021 at 06:00 AM
5 minute read
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WHAT WE'RE WATCHING
FOR WHAT IT'S WORTH - As client demand increases for Big Law's services, so too does Big Law's demand for clients' money. As Law.com's Dan Packel reports, law firms are looking to push aggressive rate increases in 2022, taking advantage the insanely busy market for M&A work. Firms have not appeared to have many qualms about jacking up rates in both 2020 and 2021 anyway. But industry observers believe there's still room for more rate growth—even double-digit increases—particularly as firms seek a financial edge that can help them attract and retain top talent. "Industrywide, even though we've seen a significant increase in the past year, we'll continue to see increases driven by significant demand," said Munger, Tolles & Olson co-managing partner Hailyn Chen. "As much as clients grumble about it, people have continued to see strong realizations."
GC YA LATER - Here's a pickle for you: What do you do when it's time to fire the GC, but the GC is usually the one who helps fire people? As Law.com's Phillip Bantz reports, it's every bit as complicated as it sounds. "A GC is typically at the point where they know all the company's secrets," said Robert Lian Jr., a partner at Akin Gump Strauss Hauer & Feld in Washington, D.C., who focuses on complex labor and employment litigation and workplace investigations. "They know how prior separation agreements have gone. They know a company's leverage points, because they've been intimately involved in navigating them. So there are a variety of issues that need to be considered when deciding whether you're going to enter into an agreed separation or have this be a completely involuntary termination." Meanwhile, there's also the small matter of the GC being the head of the whole dang legal department. "You've been thinking about how you get the person out while messaging to the broader organization that things are not just stable but are going to be fine. But the messaging to the legal department is even more important," said legal department consultant Jason Winmill. "You're not just taking out an attorney. You're taking out someone who leads a critical function for the company and that's not just the same thing as firing some random employee."
PETERING OUT POST-PANDEMIC? -.Digital event platform ON24 Inc. and its top officers and directors were hit with a securities class action Wednesday in California Northern District Court in connection with the company's Feb. 2021 IPO. The lawsuit, which also names the IPO underwriters, accuses the defendants of misleading investors regarding the company's ability to sustain customer growth experienced during the COVID-19 pandemic. The suit is backed by Scott + Scott. Counsel have not yet appeared for the defendants. The case is 3:21-cv-08578, Douvia v. On24, Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR'S PICKS
WHILE YOU WERE SLEEPING
BRUSSELS BUMP - U.S. law firm Wilson Sonsini Goodrich & Rosati has hiked pay for its Brussels associates and counsel, as the ripple effect of huge salary boosts for junior lawyers continues worldwide, Law.com International's Varsha Patel reports. According to a memo seen by Law.com International, the firm's newly qualified lawyers in Brussels will now receive $205,000, up from €130,000 ($150,576), effective November 1. One- and two-year post-qualified experience (PQE) lawyers will receive $215,000 and $240,000 base salaries, respectively, up from €140,000 and €155,000 ($162,159 and $179,540.) Third-year and fourth-year PQEs will pocket $275,000 and $305,000 respectively, while fifth- and sixth-year PQEs will take home $330,000 and $350,000. Meanwhile, the firm's most senior associates in Brussels will earn $365,000. The new rates put the groups on the same scale as the firm's U.S. associates, with any Brussels lawyers also set to receive end of year bonuses will be handed amounts based on the firm's U.S. scale.
WHAT YOU SAID
"This lawsuit is not about vaccinations. I am pro vaccination. This lawsuit is about whether a president has the authority to effectively run a state agency by manipulating his contracting power."
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