As if it needed saying again, recent weeks and speculation among rivals regarding Linklaters’ strategy in the Central and Eastern Europe (CEE) region have underlined the extent to which the firm has become established as the pace-setter that peers follow.
That’s not to say the firm is ‘better’ than rivals, simply that the strategic momentum Linklaters has shown in recent years has established it as the City’s most influential top-tier operator. As such, management figures at magic circle rivals have been keeping a watchful eye to get a sense of what the CEE review says about the firm’s direction.
Such speculation led to some slightly outlandish claims, which generally revolved around the firm taking an axe to its international network to achieve Slaughter and May-level profitability. For some this was evidence of a renewed desire to secure that once-coveted top Wall Street merger (though the evidence for that seemed shaky at best). Some rivals also detected the hand of senior partner David Cheyne, always seen as favouring a more corporate-driven practice and quality over size. Yet, while some of these claims have seen rivals put two and two together to get five, as Linklaters this week confirmed that, as expected, four CEE offices are to split away, even the wilder speculation has contained some truth regarding the firm’s direction.
So while Linklaters strongly refutes that it is aiming for a smaller, more profitable partnership, growth to the firm’s ranks is currently clearly lagging its peer group, even before you consider the CEE partners that will now be departing.
Seasoned Linklaters-watchers also note the attempt to frame every strategic detail as the work of highly-touted new managing partner Simon Davies — surely a self-conscious effort to distract attention from the undoubted influence of Cheyne. Other moves, such as leading the market with further raises to their London associate pay bands and the attempt to end the discounting of German partners’ drawings, indicate a firm focusing that little bit higher up the market.
So for once the boast in the announcement of its CEE move — titled with a sense of drama usually missing from such documents, ‘Linklaters redraws its map’ — that the firm’s aim is to be “the leading premium global law firm” can be taken as more than hot air. This latest initiative, which also forges a kind of non-Asia super-emerging market group marshalling more than 50 partners under Nick Eastwell, looks set to take the firm a step closer to its goal, harnessing the talents of one of its most seasoned performers. All in all, rivals should have plenty more to talk about.
