Back in March, we wrote about the mysterious departure from Cahill Gordon of leveraged finance partner Michael Michetti. Now, three months later, we can report that the Michael Michetti mystery has been solved: he is joining Paul Hastings, which just trumpeted his arrival in a press release.
On the whole, Cahill has been flourishing as a firm — and sharing the bounty with its associates. Recall the firm’s recent mid-year bonuses, which were very well-received.
But do the departures of Messrs. Farley and Michetti reflect trouble in paradise? Let’s hear some of the scuttlebutt….
Word on the street is that Rich Farley and Michael Michetti were squeezed out of Cahill in a power struggle. Those rumored to be doing the squeezing were three powerful corporate partners: William Hartnett, chairman of Cahill’s executive committee, and James Clark and Jonathan Schaffzin, two other members of the executive committee.
A tipster asserts that the trio of Hartnett, Clark and Schaffzin felt threatened by the efforts of other partners to build their own client relationships. This source claims that Rich Farley, for instance, “was paid less than third-year partners, despite great productivity and ten years of success in developing clients.”
It’s nice that the pie appears to be growing at Cahill Gordon. But that doesn’t mean there won’t be struggles over how to divide it.
If you have information about interesting goings-on at either Cahill or Paul Hastings, feel free to email us or text us (646-820-8477 / 646-820-TIPS).
Paul Hastings Continues to Grow Leveraged Finance Practice with Addition of Leading Finance Partner in New York [Paul Hastings]
Paul Hastings Expands Leveraged Finance Practice with Addition of Top-Tier Partner in New York [Paul Hastings]