For Some Legal Departments, Two GCs Are Better Than One
Sometimes, it takes two. The legal department at Hearst Communications recently took the unusual step of appointing dual general counsel. Here are four others that have adopted this unusual model.
August 10, 2018 at 12:05 PM
4 minute read
Earlier this week, Hearst Communications Inc. took the unusual step of appointing two general counsel to replace its former GC, who was promoted to chief legal officer.
The co-GCs, both of whom also have the title of VP, will share responsibility for the day-to-day management of the office, while continuing to actively practice their specialties. Co-GC Jon Donnellan will still tackle litigation and First Amendment law; his counterpart Mark Redman will continue his transactional focus.
While it may be atypical, the practice of having dual GCs is not unheard of. Here's a look at some of the companies that have embraced the model:
Goldman Sachs
At the end of last year, Goldman Sachs brought on then-Sullivan & Cromwell partner Karen Seymour to help bear responsibility for all legal matters for the investment banking firm's operations worldwide.
Although Goldman Sachs did not give a reason for hiring a new top lawyer, news reports noted the age discrepancy between Seymour, then 56, and the existing GC whom she joined at the helm—Gregory Palm, 69, also a former Sullivan & Cromwell partner.
For its part, the firm heralded the move as emblematic of its role in helping women crack the glass ceiling.
Deutsche Bank
At another massive investment bank, Deutsche Bank, two former Cleary Gottlieb Steen & Hamilton partners worked alongside each other for a couple of years, each with the title of GC, before assuming an official co-GC role.
When Christof von Dryander joined Deutsche Bank in 2013, it was as GC for Germany and central and eastern Europe as well as for the Asset & Wealth Management and Private & Business Clients divisions globally, according to a company announcement.
Simon Dodds had been at Deutsche Bank since 1999, when he came on as GC for the U.K. as part of the takeover of Bankers Trust, the announcement said. In 2002, he also assumed legal responsibility for western Europe and became global head of compliance in 2010.
In 2015, both von Dryander and Dodds were appointed global co-GCs at Deutsche Bank at a time when the company was besieged with legal problems over alleged misconduct.
The arrangement did not last long, however. At the end of 2017, the pair was replaced in the role by the bank's EMEA GC Florian Drinhausen.
HSBC
Sometimes a company's double legal power comes in a certain specialty area. That was the case when HSBC named Shawn Chen co-GC for litigation and regulatory enforcement.
Along with Guy Nielson, the other co-GC given this title, former Cleary partner Chen shared global responsibility for HSBC's financial crime compliance advisory team, its global internal investigations group and its employment and human resources advisory team. The two reported to Stuart Levey, the bank's chief legal officer.
The move came as part of HSBC's revamping of its compliance efforts after an eye-popping $1.9 billion penalty and a five-year monitorship imposed as punishments for the bank's failure to maintain an effective anti-money-laundering program.
UTHealth
It's not just giant banks that see the value in doubling up. The law department at the University of Texas Health Science Center at Houston, the most comprehensive academic health center in the UT System and the U.S. Gulf Coast region, is headed by co-CLOs.
Daniel Reat is VP and CLO for operations and business affairs, while colleague Melissa Pifko serves as VP and CLO for health care and clinical affairs.
Each of the UTHealth legal department's seven attorneys reports dually to both CLOs, allowing each “greater freedom to draw on the practice strengths of each lawyer based on the nature of the legal matter,” Reat told Texas Lawyer.
With two CLOs, “we have a better ability to 'divide and conquer' so we can step in as needed to support our team members,” he said.
Added Pifko: “Daniel and I have complementary practice areas, with my background in health care law and his in operational matters.”
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