Shearman goes light on consultation to appoint new City head - but can former glories be regained?

Despite years of grumblings from Shearman & Sterling's London arm, the timing of last week's announcement that long-time office head Kenneth MacRitchie was standing down was still unexpected.

And the 1 April announcement not only surprised rivals. Several London partners, caught off guard by lack of consultation, made little attempt to disguise their shock; the appointment of the new City head, the respected leveraged finance partner Anthony Ward (pictured), apparently came straight from New York, with some London partners claiming the first they had heard of the power change was a firm-wide announcement.

What is clear is that for the last few years the office - and therefore MacRitchie - has come in for some criticism. With key departures such as corporate partners Adrian Knight and Jonathan Coppin to rival US firms, the 27-partner office has struggled to grow in both numbers and, until last year, revenue.

By consensus, MacRitchie's relationship had also become more distant with New York management in recent years. Certainly, the straight-talking Scot's robust style, a quality honed by years of practising in the bullshit-free zone of projects, was not to everyone's tastes, even though he had many admirers.

Another issue has been the firm's struggle to recruit senior lawyers during a period in which Shearman has had to get used to competing with a lot more premium US firms for a very limited pool of UK lawyers. In this context, last week's resignation of tax partner Michael McGowan for Sullivan & Cromwell seems symbolic. When the then Allen & Overy partner joined Shearman in 2001 it was a typical hire for the firm but Shearman now struggles to make such appointments regularly as more profitable US firms take the initiative.

Many within the firm, while stressing their respect for MacRitchie, say something had to change. As one partner close to Shearman questioned: "Was Kenneth pressed to hand over the helm or did he fall on his sword? Someone had to be seen to pay."

Low-key but diplomatic and connected
In comparison, Ward certainly promises a change of style and clearer lines of communication with the US, having built up his management contacts since taking a role on Shearman's firm-wide policy committee two years ago.

And, despite the fact he has only held his new post for little more than a week, some changes have already been made. So far the biggest is his choice of US-qualified London capital markets head Richard Price to support him as deputy head of the office. The appointment means Price replaces ex-Freshfields Bruckhaus Deringer litigation partner Jo Rickard little more than six months after she took the role on from competition specialist Chris Bright.

Explaining the move, Ward says: "I come from the finance side but Richard comes from corporate and the New York side of the practice, so I felt it would be helpful to have him on board." As one partner within the firm says: "Anthony has a hugely successful practice, but to a certain extent he is an unknown. The firm always tends to respond to people that are horribly successful by pushing them into management."

There will be many in London watching Ward's progress and much is riding on how he performs. Despite being notoriously press-shy, he must now front a respected practice with an image problem. There is also the impact of a looming US recession, which does not bode well for one of Manhattan's least hedged firms. This is still a quality practice but returning Shearman to its former City glories will need real leadership, not just new management.

More news, deals and comment on Shearman & Sterling

Shearman on the Legal Week Wiki

Shearman goes light on consultation to appoint new City head - but can former glories be regained?

Despite years of grumblings from Shearman & Sterling's London arm, the timing of last week's announcement that long-time office head Kenneth MacRitchie was standing down was still unexpected.

And the 1 April announcement not only surprised rivals. Several London partners, caught off guard by lack of consultation, made little attempt to disguise their shock; the appointment of the new City head, the respected leveraged finance partner Anthony Ward (pictured), apparently came straight from New York, with some London partners claiming the first they had heard of the power change was a firm-wide announcement.

What is clear is that for the last few years the office - and therefore MacRitchie - has come in for some criticism. With key departures such as corporate partners Adrian Knight and Jonathan Coppin to rival US firms, the 27-partner office has struggled to grow in both numbers and, until last year, revenue.

By consensus, MacRitchie's relationship had also become more distant with New York management in recent years. Certainly, the straight-talking Scot's robust style, a quality honed by years of practising in the bullshit-free zone of projects, was not to everyone's tastes, even though he had many admirers.

Another issue has been the firm's struggle to recruit senior lawyers during a period in which Shearman has had to get used to competing with a lot more premium US firms for a very limited pool of UK lawyers. In this context, last week's resignation of tax partner Michael McGowan for Sullivan & Cromwell seems symbolic. When the then Allen & Overy partner joined Shearman in 2001 it was a typical hire for the firm but Shearman now struggles to make such appointments regularly as more profitable US firms take the initiative.

Many within the firm, while stressing their respect for MacRitchie, say something had to change. As one partner close to Shearman questioned: "Was Kenneth pressed to hand over the helm or did he fall on his sword? Someone had to be seen to pay."

Low-key but diplomatic and connected
In comparison, Ward certainly promises a change of style and clearer lines of communication with the US, having built up his management contacts since taking a role on Shearman's firm-wide policy committee two years ago.

And, despite the fact he has only held his new post for little more than a week, some changes have already been made. So far the biggest is his choice of US-qualified London capital markets head Richard Price to support him as deputy head of the office. The appointment means Price replaces ex-Freshfields Bruckhaus Deringer litigation partner Jo Rickard little more than six months after she took the role on from competition specialist Chris Bright.

Explaining the move, Ward says: "I come from the finance side but Richard comes from corporate and the New York side of the practice, so I felt it would be helpful to have him on board." As one partner within the firm says: "Anthony has a hugely successful practice, but to a certain extent he is an unknown. The firm always tends to respond to people that are horribly successful by pushing them into management."

There will be many in London watching Ward's progress and much is riding on how he performs. Despite being notoriously press-shy, he must now front a respected practice with an image problem. There is also the impact of a looming US recession, which does not bode well for one of Manhattan's least hedged firms. This is still a quality practice but returning Shearman to its former City glories will need real leadership, not just new management.

More news, deals and comment on Shearman & Sterling

Shearman on the Legal Week Wiki