"He wasn't everyone's cup of tea; he wasn't universally popular," says one former Linklaters partner when asked about the departure of managing partner Simon Davies for Lloyds Banking Group announced this week. Continuing: "I think you can get away with a couple of terms, but however good you are people are looking for a change."

Davies surprised many in the market, and some in his own firm, when he announced on Wednesday that he would be stepping down from his current role a year early to join Lloyds as chief people, legal and strategy officer in January 2016. Lloyds' current divisional heads of HR, legal and strategy will all report directly to him.

The bank's general counsel, Kate Cheetham, who was appointed in March 2015 after Andrew Whittaker left the bank after two years in the role, will be among those reporting to Davies.

In a statement released by the bank, Davies said it was the "right time to consider a new challenge" in his career.

Sources close to the firm say that although Davies had initially been keen on seeking a third term as managing partner he had been unlikely to win – and some partners had warned him off standing for that reason. In the 2012 managing partner elections, Davies failed to meet the 75% majority required for the position, despite standing unopposed. He was elected after a second round of voting.

But even so, his move to Lloyds came out of the blue for most. "The first I heard of it was when the internal press release came out [on Wednesday]," says one Linklaters partner.

Davies was first elected as managing partner in 2007 and has served two four-year terms in the role. A former Linklaters partner comments: "There is a natural period. You do a couple of terms and you can't go beyond that. You look at American presidents, they are limited to two terms, you look at Thatcher and Blair, people who were popular – you get to two terms and that's it.

"Simon suffered in part from that and he wasn't everyone's cup of tea; he wasn't universally popular. I think you can get away with a couple of terms, but however good you are people are looking for a change."

Lloyds has been a long-standing Linklaters client, but the bank was not a direct client of Davies. However, one partner at the firm says Davies has been "quite close to senior management at Lloyds for some time".

After eight years as managing partner and four years as Asia managing partner, Davies, according to one former partner, "has been without a practice for most of his career". Another ex-Linklaters partner thought Davies' qualities suited him to the role at Lloyds: "He is great with people, great with his partners and a really nice thoughtful guy."

It is a sentiment that is echoed outside the firm. "It struck me as a good move for him," comments one City banking partner. "One of the issues is once you have served a term or two in management it is hard to come back into private practice."

But another City banking partner thought it was unusual for a senior partner at a UK law firm to move into a role at a bank. "It strikes me as a clever move all round; [former Clifford Chance chairman] Keith Clark went to Morgan Stanley after Clifford Chance but there aren't many who have done it," he says. "I think it is a good move for him and also deals well with the fact that there isn't an obvious career after management."

However, another City partner disagrees, saying: "I don't think it is that unusual, [former Clifford Chance banking partner] Mark Harding did it, and if you have been in a management role at a big international law firm you have some very relevant business experience as well as your legal experience. I think it will be an increasing trend."

The process for electing Davies' successor is as yet unconfirmed by Linklaters, although senior partner Robert Elliott says it will be decided by the end of July.

"People will be scrambling around to decide if they want to do it or not," comments a former Linklaters partner.

Elliot says: "Last time we ran the process we took soundings and came up with a long list, which we reduced to two candidates who then gave hustings on their strategy. Eventually the board will make recommendations with partners then having a confirmatory vote."

Sources have suggested Asia managing partner Marc Harvey and London head of finance and projects Michael Kent as possible candidates for the managing partner role.

The senior partner position will also become vacant in September 2016 when Elliott's five-year term ends. It is understood that he does not intend to run again. London corporate partner Charlie Jacobs and Jean-Pierre Blumberg, who is based in Antwerp, have been tipped by sources as considering a run at the role.

Lloyds this week also announced that it has hired ex-Barclays lawyer Joanna Carver as general counsel for commercial banking. Carver left her role as Barclays' head of legal for corporate banking in March.