Stepping Up
New York-based Pfizer Inc. tapped its general counsel, Jeffrey Kindler, to serve as its CEO July 28. Kindler's transition is the most recent example of a handful of GCs who have made the move from the top legal post to the top business position within the past couple of years....
August 13, 2006 at 08:00 PM
4 minute read
The original version of this story was published on Law.com
New York-based Pfizer Inc. tapped its general counsel, Jeffrey Kindler, to serve as its CEO July 28.
Kindler's transition is the most recent example of a handful of GCs who have made the move from the top legal post to the top business position within the past couple of years. This trend is due in part to changes in what boards look for in a business leader as well as the changing mentalities of in-house counsel themselves.
For in-house counsel looking to make such a leap, Julie Goldberg, managing partner of executive recruiting firm Korn/Ferry International's Legal Specialist Group, offers her advice on what skills general counsel can use to their advantage as well as what skills they need to develop.
Q: What made Kindler a good candidate for CEO?
A: You had a board of directors that looked around to see if there was an internal candidate. Certainly over the course of six or seven years, Kindler generated great respect and engendered real credibility and trust among the members of the board. He also already knew a lot about Pfizer and its senior management. Given the kinds of challenges that Pfizer faces today, the general counsel is well situated to understand those challenges and navigate around them.
Q: Why would a GC want to become a CEO?
A: Many lawyers have business envy. As lawyers they are either outside counsel who are brought in and then discharged without ever getting a hold of the real excitement of the business, or they are in-house counsel and never felt like they achieved the level of respect or seniority of the businesspeople. That's changing over the course of the past several years largely because of the regulatory environment, which has hugely elevated in-house counsel's stature.
Also, I think one of the more intangible aspects of being a lawyer, even at the senior level, is that it's harder to define your impact, unless you win some huge litigation. Becoming a CEO allows a GC to step up and show that he or she can really guide a company.
Q: What skills do GCs have that can facilitate such a transition?
A: Risk management is critical. One of the drivers that you will find in any GC that becomes a CEO is a real ability to look across the enterprise and understand where the landmines might be as well as how to navigate around them.
Q: What skills does a GC need to hone to become a CEO?
A: Understanding business operations is important. The more general counsel can understand the business and how it works, the more effective they can be.
Also, not all lawyers are finance people. The degree to which a CEO really understands what a CFO does and really understands the numbers is going to help them be that much more effective. Having a J.D. and an MBA is an advantage because it helps someone understand the finances and the business.
Q: How do general counsel actually make the move to a CEO position?
A: It doesn't always happen by design. Kindler didn't go into Pfizer thinking he was going to replace the CEO there. It really becomes more about who is well equipped and who the best candidate is. The board will look for someone that has a proven track record for navigating risk and leading.
Q: What difficulties does a GC face when trying to make that leap?
A: The biggest difficulty may be in getting comfortable with thinking about the strategy for growth. Lawyers don't have to generally think about strategy for numbers growth. It's never been part of their mandate to grow a business. They have supported a business with whatever needs the business may have, but they never had to interface with Wall Street and the analysts every quarter. It's a very different focus.
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