London partner hiring by international firms fell in 2013, research shows
Senior lawyer hiring by international law firms in London fell last year for the first time since the financial crisis, according to research carried out by Legal Week.
March 27, 2014 at 07:12 AM
3 minute read
Senior lawyer hiring by international law firms in London fell last year for the first time since the financial crisis, according to research carried out by Legal Week.
The study, which looked at 44 of the largest international and US law firms in the City, found that the number of lateral partner hires made by the group dropped to 77, compared to 127 across the same group in 2012.
A number of major events in 2012 – including the collapse of Dewey & Leboeuf and Locke Lord's hire of 18 partners for its launch in the City – contributed to the dramatic swing, though the 2013 figures are still significantly down on the 100 moves recorded for 2011.
Across the group, the most prolific recruiters were Mayer Brown and Jones Day, which made seven and six partner hires in London respectively in 2013, while Reed Smith, White & Case, Dentons and Latham & Watkins all made four senior laterals during the period.
Of those firms, Reed Smith, Mayer Brown and Jones Day have been three of the five most regular hirers over the last five years.
The study also found 10% of the hires made by the group were of partners from the magic circle. Last year these included the marquee signings of Clifford Chance's David Walker by Latham & Watkins, and the transfers of Linklaters partners Ian Bagshaw and Richard Youle to White & Case, and of Chris Howard to Sullivan & Cromwell.
However, 39% of the movers came from other international firms in the City, suggesting that 'eat-what-you-kill' firms remain substantial sources of recruitment for their peers.
Several industry observers and recruiters suggested one of the reasons for the drop in overall lateral numbers may be that firms are exercising more caution in the hiring process.
"Essentially law firms are kicking the tires a lot harder these days and are keen to go beyond the usual referencing process to really test the business case before making an investment," commented Syed Nasser, a senior consultant at Fox Rodney Search. "Particularly for hires into the equity it has become extremely popular."
A number of highly profitable firms in London – including Skadden Arps Slate Meagher & Flom, Simpson Thacher, and Cleary Gottlieb Steen & Hamilton – made no hires in London. Dechert, which hired eight partners in 2012, also made no hires last year.
For more, see this week's main feature on international firms in London.
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