The New Challenges Facing A&O's Old Style Management
'Aggression is Needed,' says one insider as the firm new leadership grapples with the US strategy question.
February 28, 2020 at 09:39 AM
3 minute read
A&O partners could hardly be accused of being radical in their top brass elections this week. Wim Dejonghe was re-elected as senior partner and another London-based, white, male partner, Gareth Price, has replaced Andrew Ballheimer as managing partner.
Price was considered by many inside and outside the firm to be one of two lead contenders for the position, alongside global litigation head Karen Seward. Several partners had felt that the time had come for a woman at the top of the Magic Circle firm – and what a statement it would have been for A&O to lead the elite pack in being the first to do so – but it wasn't to be.
For a firm that prides itself on its commitment to diversity, and with Dejonghe cited by many as someone who leads by example on the topic, some lawyers at the firm will likely be disappointed.
But diversity of all sorts was high on the list of priorities for all leadership contenders, according to those who witnessed their campaigns. Dejonghe's support of various diversity and inclusion initiatives over the years has clearly struck a chord, and he can now renew efforts in the area alongside Price.
Such efforts to push for change may also need to address another increasingly pressing issue for Dejonghe and Price to contend with. That is, of course, the firm's presence and ambitions in the U.S.
The topic is still front of mind for the firm, despite its failed merger talks with O'Melveny & Myers last year.
One London partner describes it as "an existential issue". He believes "aggression is needed" in approach and that the firm has "no choice" but to display it.
But aggression in business is nothing without deep pockets to fund the attitude. A&O has tinkered with its compensation system in recent years, including gifting its star partners 'Eagle Points' that elevate them beyond the top tier of its lock-step, and reducing the worth of points in jurisdictions outside its core business.
Is this enough? Perhaps a wholesale restructure of its compensation system may be necessary in order to tempt another merger partner to the table, and to ensure the firm can hire the best domestic talent in the U.S. According to several at the firm, Dejonghe has been pushing for more dramatic changes for several years. Now may be the time to move the needle.
In order to do so the pair will need to show they can be radical and that the firm can benefit from a diverse way of thinking – even if their election makes it look like it is more of the same.
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