Inside Track: General Counsel to Chief Administrative Officer to President
United Airlines promoted its former general counsel and current chief administrative officer to president, a move other companies have taken and could do more in response to the COVID-19 pandemic. Also, the Amazon.com GC's comments about a worker fired over organizing a protest during COVID-19 self-isolation return to the spotlight as another company executive responds to the controversy publicly.
May 13, 2020 at 06:05 PM
7 minute read
The original version of this story was published on Law.com
This week, the former general counsel of United Airlines was named company president. Amid the COVID-19 coronavirus crisis, Brett Hart assumes his new role as president at United, almost five years after his leadership was tapped during another crisis for the Chicago-based airliner.
In fall 2015, United's new CEO, Oscar Munoz, had a heart attack that led to a heart transplant. As Munoz took medical leave, United depended on Hart to be CEO in the interim. At the time, GCs rarely ascended to the CEO spot. Hart eventually became the chief administrative officer, a role that United won't fill after Hart vacates it to become president.
Though United had announced the succession plan in December, Hart's appointment shows what could be a more natural elevation for a lawyer within the C-suite: GC to CAO to president. With the novel coronavirus pandemic impacting legal department moves in the short term, it may also produce more C-suite promotions for top lawyers based on how they demonstrate their skills during the crisis.
In 2019, Corporate Counsel covered the trend of GCs transitioning to CEOs. But the transition from GCs taking on the CAO role, or similarly the chief operating officer role, then possibly the president role has seen less attention.
The GC of Atlanta-based claims management firm Crawford & Co. was named company president amid the COVID-19 pandemic as well. Joseph Blanco, who will assume his new position this week, spoke with Corporate Counsel about the coronavirus impact on his company and in his industry.
Dallas-area fintech firm Blucora recently gave chief legal officer Ann Bruder the added roles of CAO and corporate development officer.
"Ann's exemplary leadership prior to and during the COVID-19 crisis has had a significant impact on our business," said Blucora CEO and president Chris Walter in a statement. "Ann's positive influence on the organization will increase with her expanded role."
Other examples include H&R Block and Ford Motor Company with GCs who are also CAOs. The former American Apparel GC became the CAO right before becoming the CEO and described the continual role transition to Corporate Counsel last year. When current Airbnb CLO Rich Baer also became CAO at his former company Liberty Media, he told Corporate Counsel last year that he would manage talent acquisition.
"They are very different roles. I don't think the legal profession is known for its ability to develop talent," he said. "I've had to learn about this over the years. I've had the benefit of working with some immensely talented CEOs and boards over the years who have taught me how to think about talent, hiring, development and leadership. That has been a challenge just to simply learn it."
How do you see your role evolving due to COVID-19? Please let me know at [email protected].
SPONSORED BY ALM PARTNERS
Time Management: Vital Principles to Help you Stay on Track Whilst Working from Home
Most people imagine that working from home is a casual affair that should not be treated with seriousness. However, if you are thinking about venturing into any form of home business, you have to acknowledge the fact that it requires as much seriousness as any other business. READ MORE
What I see within that nationalism is a change in the supply chain. There's still a need to have global commerce—and I think that's what we'll be able to facilitate.
- Todd Goffman, the new GC at Globalization Partners, a Boston-based firm that aims to make it easier for companies to expand into foreign countries.
|
What's Happening
|Amazon Still Feeling Burn of COVID-19 Firing
Amazon.com GC's remarks last month about fired warehouse worker and protest organizer Chris Smalls were "unfortunate," according to the tech giant's head of operations Dave Clark in an interview with "60 Minutes" on CBS that aired Sunday.
GC David Zapolsky had described Smalls, who is black, as "not smart, or articulate," according to leaked internal notes. He also said that Amazon's press relations team will beat Smalls in the media with the message of "simply explaining for the umpteenth time how we're trying to protect workers."
The GC said in an earlier statement that his remarks came from being "frustrated and upset" over Smalls allegedly violating company policy by returning to work after being exposed to a co-worker who tested positive for COVID-19.
CCPA 2.0 Closer to Election Ballot
There's a ballot initiative supported by in-house counsel that could strengthen the California Consumer Privacy Act.
The California Privacy Rights Act aims to regulate large companies that collect large amounts of data. The initiative now has the 900,000 voter signatures it needs to be considered to be on the ballot during the November general election in California.
Californians for Consumer Privacy, the group heading the initiative, said the signatures now have to be verified by the counties and approved by the California Secretary of State.
|
Women, Influence & Power in Law Awards
Corporate Counsel's Women, Influence & Power in Law Awards awards deadline for submissions is July 8.
We are looking for general counsel and law firm partner applicants in the following categories:
Crisis Management: Industry – General Counsel Banking & Finance Insurance Transportation & Infrastructure Manufacturing & Chemicals Technology, Media & Telecom Retail & Consumer Goods
In-House & Law Firm Awards Innovative Leadership Thought Leadership Collaborative Leadership Women's Legal Awards General Counsel of the Year/Managing Partner of the Year Lifetime Achievement
If you know a general counsel or law firm partner who qualifies for a WIPL award, then please apply here.
|
Best Legal Departments
Corporate Counsel's Best Legal Departments awards deadline for submissions is June 15.
We are looking for general counsel and in-house legal department applicants in the following categories:
U.S. Legal Department of the Year
Compliance Department of the Year
Startup Solo GC of the Year
>Best Use of Technology
General Counsel of the Year
Best Deputy or Associate GC
Champion of Diversity Award
Best Legal Ops Team
Outstanding Community Service Award
If your general counsel and legal department qualify for a Best Legal Departments award, then please apply here.
|
On the Move
|Smitha Mortis is the new GC at fintech mobile app maker Branch. The Minneapolis-based company hired Mortis, formerly the Klarna US GC, in December but announced the move this month. Mortis, who's working remotely in D.C., spoke about adjusting to her new role in the COVID-19 crisis.
Zoom Video Communications has hired Jonathan "Josh" Kallmer as the head of global public policy and government. The Information Technology Industry Council's executive vice president of policy joins Zoom as the San Jose, California company's video conferencing app attracts millions of daily participants during social distancing and shelter-in-place measures. Zoom also is facing lawsuits and regulatory concerns related to privacy and security issues.
Fintech company Robinhood named a former commissioner of the U.S. Securities and Exchange Commission to be its next CLO. Also the former GC of drugmaker Mylan, Daniel Gallagher will begin his role later this month and work in Washington, D.C. for the Menlo Park, California company. He steps in for Anne Hoge, who served as CLO since November but will be leaving to care for a sick family member.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAs AI Transforms Drug Development, FDA Is Scrambling to Figure Out Guardrails
5 minute readInside Track: How 2 Big Financial Stories—an Antitrust Case and a Megamerger—Became Intertwined
CLOs Still Jazzed About Gen Al, Even as They Realize Successfully Implementing It Is Harder Than It Looks
2 minute readTrump Likely to Keep Up Antitrust Enforcement, but Dial Back the Antagonism
5 minute readTrending Stories
- 1In Lame-Duck Session, US Senate Confirms Illinois Federal Judge on Bipartisan Vote
- 2Gordon Rees Opens 80th Office, ‘Collaboration Hub’ in Palo Alto
- 3The White Stripes Drop Copyright Claim Against Trump Campaign
- 4Law Firm Accused of Barratry for Allegedly Soliciting Crash Victims
- 5Carlton Fields Downsizes in Move to New Atlanta Office
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250