CC to continue cost-cutting push as Childs becomes head honcho
City giant to continue focus on bottom line as new global managing partner announces future plans
March 08, 2006 at 07:03 PM
3 minute read
Clifford Chance (CC) chief operating officer (COO) David Childs has pledged to continue his cost-cutting drive following his appointment as the magic circle giant's global managing partner last week.
Childs, who will replace Peter Cornell as managing partner on 1 May for a four-year term, told Legal Week he believed there were more costs to be taken out of the business. He added that he would be appointing a partner to oversee the financial affairs of the firm as part of the process.
He commented: "Changes during the last two-and-a-quarter years have contributed to north of £25m annual savings, but cost-cutting is continual. I will be appointing an executive partner for finance in the coming weeks."
As COO, Childs was regarded as having been instrumental in successfully slashing CC's costs at a time when the global giant was suffering a sharp dip in profits, with Childs pushing through the centralisation of CC's document production, IT and conflictschecking procedures. His appointment as managing partner will see the firm ditch the COO role.
In a further boost to his mandate, Childs takes over after CC in December agreed long-delayed reforms to its lockstep, a highly sensitive issue that was championed by Cornell.
CC partners backed the appointment, with one commenting: "[Childs' election] demonstrates the mindset of the partnership right now: bottom line-focused and London-led. Cornell's legacy was to glue the partnership together, Childs is now needed to run things clearly and efficiently."
Childs stood uncontested for the post. Despite the nominations of five other partners, no rival candidate put their name forward.
At the time of the nominations, one senior partner in the firm conceded: "I would be interested, but I would never stand against David."
Another last week added: "The management has not sent round a publicity memo about what to say [about Childs' appointment] this time – they have not had to."
Childs said he had no plans to emulate his predecessor's move to New York in an effort to smooth out the firm's most troubled region of recent years, opting instead to spend about a quarter of his time in the US.
However, he confirmed that the firm plans to grow its US operation, which currently numbers about 300 lawyers, noting: "We are nowhere near the size we want to be."
He also backed the need for growth in the key emerging markets of China, India and Eastern Europe.
Despite his corporate background, Childs said he was not planning to substantially boost the practice's prominence. Childs said the firm was aiming to bring in 30% of its revenue from corporate, against a current figure of 27%.
The election is the latest in a series of changes to CC's top brass which were triggered when Childs last year announced he was to relinquish his dual head of corporate position to focus on the COO role.
Peter Charlton took over the corporate title, leaving Jeremy Sand-elson to assume Charlton's brief as London managing partner.
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