Each year, Corporate Counsel compiles a list of the law firms that Fortune 100 companies use as outside counsel. This year, to change things up a bit, it seems like the list has been expanded to cover the entire Fortune 500. From Apple to Yahoo, and every billion-dollar company in between, these corporate clients expect nothing short of the best in terms of legal representation when dealing with high-stakes litigation and deals. If you’re looking to line your firm’s pockets, you better head to the RFP line when these companies seek lawyers.
Up until last year, only the most prominent Biglaw firms (like Cleary, Davis Polk, Cravath, and Simpson Thacher) topped the list of those that had the pleasure of doing business with the country’s biggest companies. Things changed rapidly, however, when Big Business tried to cash in on deals for legal services. The firms that were willing to cave to the pressure of providing alternative fee arrangements won in a big way, and the rest were left in the dust.
Have these prestigious firms changed their ways? Is Corporate America again willing to open its fat wallet for them? Let’s find out…
Each year, Corporate Counsel compiles a list of the firms that the Fortune 100 companies use as outside counsel. These are the firms that corporate clients turn to when they’ve got bet-the-company litigation. From Exxon Mobil to Apple to Walmart, and everywhere in between, these are the clients with the deepest of pockets, and if you care at all about the business end of the law, then this is a list that you should care about.
But this time around, the list looks a little different. Due to the state of the economy, general counsel are now looking for more ways to reduce costs, and are constantly seeking out alternative fee structures. The firms on this year’s list may have been the ones that were most amenable to such changes.
Without further ado, let’s take a look at which firms topped this year’s list….
I have spent many hours talking to others about the future of the legal profession. My Biglaw friends (at least the one who remains) proclaim that the future of legal practice is not that different from the past — by which she means that Biglaw is the future. The attorneys I meet from small law firms, in contrast, predict that Biglaw is out and small firms will prevail. My unemployed lawyer friends believe that they, along with a bunch of other unemployed lawyers, will toil away as hourly document review attorneys in the future. I believe that the children are our future, teach them well and let them lead the way. Oh, sorry, that is Whitney. RIP.
Corporate Counsel recently published an article, Bye Bye Big Firm, that predicts that while small law firms will not overtake Biglaw, they will be a major part of the future of legal practice. The article offers several reasons for predicting this future trend:
Someone in the company is going rogue: The person proposes to do something brazenly illegal, or slightly illegal, or perfectly legal but sufficiently immoral that the conduct would turn any reasonable person’s stomach. The rogue is not listening to logic. The person is ignoring everything that your local in-house lawyer is saying.
When the local lawyer calls the headquarters law department for help, these are the words that headquarters must be able to speak: “Local lawyer, you win. This is not a close call; we should not be doing this. In this situation, I guarantee you that you hold the trump card. Who do you need to make a call to solve your problem? The general counsel? The chief financial officer? The CEO? Someone else? We will cause that call to be made in a heartbeat. What do you need?”
Is that what people mean when they talk about “tone at the top”?
I recently heard a horror story from an in-house lawyer at another corporation. This may not sound like a horror story to someone who works at a law firm, but if you reflect for a minute, you’ll see the birds gathering on the monkey bars in the background.
Three people — one from finance; one from a business unit; and our hero, the lawyer — were speaking on a panel to a couple hundred people in a business unit. The business-unit panelist said something outrageous and brazenly illegal to the assembled group. Assume it was something like, “As you know, we simply ignore that law,” or, “It’s easier to raise prices if we just conspire with the competition.” You get my drift.
Our hero, the lawyer, involuntarily gasped into his (or her) microphone, “My God, Smith, you can’t say that! How many times do I have to tell you?”
Smith looked over, thought for a minute, and said to the assembled crowd: “That’s just Legal.”
You spend three years of your life going to law school. You spend over a hundred thousand dollars on getting that education. You take a difficult entrance exam to prove that you are qualified to practice law. You’d think that after all that you’d be able to convince sophisticated clients of your value as a lawyer.
You would, of course, be wrong.
The Wall Street Journal reports that over 20% of corporate clients simply refuse to pay for first- or second-year associate work on some matters.
This is a terrible indictment of the value of a legal education….
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.