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WHAT WE'RE WATCHING

LOCKSTEPPIN' OUT - Jennifer Conway's recent departure from Cravath, Swaine & Moore is another indication that the upcoming year will continue a frenzy of lateral moves among elite firms. It's also an indication that ya can't please everybody. As Law.com's Christine Simmons and Andrew Maloney report, several legal industry observers predict fallout at firms that have abandoned lockstep, causing some partner exits. Meanwhile, elite firms will use some of their newly available compensation tools to attract talent in 2022. "We're going to see a little fallout from the firms that recently changed lockstep. As they begin to use the tools to pay people more from others, the others may push back and be resentful or not like what [happens to the culture]," said New York-based Alisa Levin of recruiting firm Greene-Levin-Snyder. "There is no doubt the culture is significantly shaped from the compensation system, and when you change something as dramatic as the comp system, there is going to be fallout."

RETURN OF REMOTE - Stop me if you've heard this one before: federal appeals courts across the country are weighing whether to switch to virtual oral arguments or alter their rules for in-person hearings as the latest COVID-19 variant surges. As Law.com's Avalon Zoppo reports, the U.S. Court of Appeals for the Federal Circuit and the Seventh Circuit were the first two federal appeals courts to switch back to remote oral arguments amid the omicron spike, but courts elsewhere are still watching to see if operational changes are needed. For example, Chris Wolpert, clerk of court for the Tenth Circuit, said the court is monitoring the situation. It released new mask requirements and building entry restrictions in November. "There are no current plans to change anything related to our January term of court, but given the rapidly developing situation with this new variant it's a bit early to know whether anything might change before January term," he said in an email.

HOT DEAL - Blackstone Products Inc., an outdoor griddle company, is going public via SPAC merger with Ackrell SPAC Partners I Co. As a result of the merger and related PIPE financing, Blackstone Products will be listed on the Nasdaq with a post-transaction equity value of approximately $900 million. The transaction, announced Dec. 23, is expected to close in the second quarter of 2022. Logan, Utah-based Blackstone Products was represented by an O'Melveny & Myers team led by partners Noah Kornblith, Jeeho Lee and Warren T. Lazarow. Ackrell was advised by Ellenoff Grossman & Schole. Sidley Austin counseled Nomura Securities International Inc. and Barclays Capital Inc. in their role as placement agents on the PIPE.  Stay up on the latest deals and litigation with the new Law.com Radar.  

EDITOR'S PICKS

WHILE YOU WERE SLEEPING

PRUDENT PANDEMIC PLANNING -  Allen & Overy substantially increased the cash on its balance sheet in the last financial year following a series of protective measures undertaken at the start of the pandemic, Law.com International's Jack Womack reports. The firm's cash and cash equivalents figure jumped 79% to reach £352.1 million as of April 2021, according to its limited liability partnership accounts filed at the U.K.'s Companies House on Wednesday. The figure refers to the firm's LLP and subsidiary undertakings. In March 2020, A&O called on partners to contribute capital, froze associate pay, and announced plans to reduce partner profit distributions. The cash call generated £54 million, its management team said earlier this year. Between April 2020 and April 2021, the firm reduced its operating expenses – not including staff costs – by £41 million, meaning the figure now stands at £181.3 million. In the commentary from within the report, the firm attributes the reduction to less spending on "indirect expenses such as travel, marketing, entertaining and office-based costs such as catering and other utilities."

WHAT YOU SAID

"While office hours and associate face time will still be a part of life, the rubicon has been crossed and there will be no going back to the way things were. Too many attorneys, including high profile partners, have discovered what we have long known—working from home is not a vacation, it is a more efficient way to get superior attorney work product for our clients."