In-House Lawyers

In-house lawyer: The Italian jobs

Author: Anthony Paonita

Published: 03/07/2008 01:03

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There’s a new breed of Italian in-house lawyers. They are multilingual, highly skilled and global in outlook. Anthony Paonita reports

It is a warm spring afternoon in Rome. A group of corporate counsel have gathered for lunch at Gusto, a high-concept Asian fusion restaurant just blocks from the fashionable Via Condotti. At first, it looks like a typical gathering of Italian lawyers. The men wear dark suits; the women, tasteful dresses. They greet each other formally with handshakes and they are all carrying BlackBerrys, pulling them out occasionally to discreetly scan for new email. As the meal proceeds, the lawyers address each other with the familiar tu, even though they are not close friends — something that would have been unthinkable not so long ago. And they flip easily between English and Italian, the choice of language dependent on what they want to say.

They talk about their peers in other European countries, their business trips to remote former Soviet republics, and their difficulties with the Sarbanes-Oxley Act in the US. Meet the new breed of Italian in-house lawyer. Once, lawyers working in companies were either non-existent or lonely functionaries who stuck around the office to sign the occasional contract. Today, however, the in-house Bar in Italy is populated by a cadre of young, well-educated, highly-skilled, globally-oriented professionals.

They share several characteristics. Many spent at least part of their university years in the Erasmus Programme, a student exchange program that allows young Europeans to study in other countries. They might acquire advanced degrees in the UK or US and spend at least some time working abroad before returning to Italy. When they return, many of them cut their teeth at the energy giant Eni. And they have taken the lessons they have learned abroad and are injecting Italian business with corporate governance and regulatory savvy, not to mention a more competitive, plain-speaking style.

All of the Roman lunch attendees gave two big reasons for why they are currently working in-house. Companies are expanding their law departments because they have a larger, better-qualified pool of Italian lawyers to choose from. And the ubiquity of cross-border deals and joint ventures, plus an exponential leap in EU regulation, have made Italian businesses aware of the need for in-house legal help just down the hall.

One of those attendees, Bruno Cova, is a perfect example of the new breed. Although Cova, 48, now runs the Milan office of Paul Hastings Janofsky & Walker, it is tempting to call him the dean of the Italian in-house Bar because he has worked at three of the country’s biggest companies. He studied abroad, getting an LLM from King’s College London, then he worked in the London branch of a now defunct Italian law firm in the early 1990s (he is fluent in English and he speaks it un-selfconsciously and colloquially).

Cova returned to Italy in 1992 for his first in-house job, as general counsel of Eni’s Agip division. Then he left again to work in London, as in-house counsel for the European Bank for Reconstruction and Development. Following that, he served as Fiat’s general counsel during its short-lived alliance with General Motors. Next he helped guide Parmalat Finanziaria out of bankruptcy following the collapse of the food giant in 2004.

Of his cohort, Cova says: “With their international experience, openness to change, and ability to work in a multicultural environment and across languages, they have become trusted advisers to, and an integral part of, senior management. What used to be the exception is now increasingly the norm.”

The notion of an in-house legal department with clout is fairly new to Italians. Until as recently as a decade ago, the goal for most law graduates was to go into family firms or open their own practices, with the lucky few finding jobs in a handful of large firms. Companies may have had a couple of lawyers on staff but there was no legal department as such. Many staff lawyers, in fact, reported to the chief financial officer or an administrator.

“Whenever an acquisition or an important transaction beyond the scope of paper-pushing came up, [companies] sought outside counsel,” says Elena Berlucchi, senior counsel of GE Oil & Gas in Florence. Kenneth Resnick, the US general counsel of GE’s Italian operations and Berlucchi’s boss, adds that as a result “there were a lot of in-house lawyers sitting at their desks, waiting for the phone to ring”.

Working in-house carried a stigma, too. If a company did have an in-house lawyer, says Marco Bollini, GC of Eni’s gas and power division for the past two years, “it was someone who may have failed the Bar or didn’t want to work in private practice”. Even now, Berlucchi says: “When I told my father I had accepted an offer from GE, he was horrified. His generation was convinced that private practice was the only way to be a lawyer.”

But that stigma is not warranted any longer. Bollini says his department has become more discerning in how it chooses its talent. “We used to hire people right out of university,” he says. “Now we look for lawyers with at least a couple of years of outside international experience — and they have to be fluent in English at least. Other languages are a bonus.”

Berlucchi, 42, is one of the new breed. She studied French in school and learned English on the job. Her fluency in English is largely the result of a stint in the early 1990s with the Italian law firm Pavia & Ansaldo, which sent her to New York for a year to serve as a visiting lawyer at Proskauer Rose. After returning home to Italy, she joined Allen & Overy, commuting regularly between London and Milan.

With such a successful law firm career, why did she go in-house in 2007 at GE? “I began to think of the benefits,” she says. “There were so many connections with my practice in oil and gas and I decided that I was attracted to the size of the company and the kind of work they offered.”

Francesca Chevallard, 35, is also part of the new generation. And, despite her age, she is one of the pioneers — she started in-house at Fiat more than a decade ago (she is now senior legal expert at Unicredit in Rome). Fiat, like Eni, has historically maintained a legal department — in fact, longtime Fiat chief executive Gianni Agnelli, who died in 2003, was called L’Avvocato (‘the lawyer’) because of his legal training.

Chevallard was hired by Fiat right out of university and was not exactly given a long apprenticeship. “I was only 23,” says Chevallard, who spent a year in Spain as an Erasmus student, “and I was in charge of contracts and litigation. It was quite intense; I suddenly had to deal with all sorts of issues, like litigation with suppliers.” She says it got even more complicated in 2000, when Fiat entered into an abortive alliance with GM, which entailed producing parts and some car models together.

The change in corporate counsel, Italian-style, has not gone unnoticed by outside observers. “I have noticed a huge shift in the quality of the in-house Bar,” says Rome-based legal consultant Leigh Dance, who advises multinational law firms and legal departments. “A decade ago,” Dance continues, “corporate counsel were much more domestically focused. But Italy, more than any other country in the EU, has made a shift, and they are much more internationally focused. These people know how to structure international transactions.”

Instrumental in the cultural shift was Eni — Italy’s largest company in terms of operating profit. The Milan-based oil and gas giant was sold off in the 1990s wave of privatisation, which saw the Italian Government transfer companies in key industries such as telecommunications, transportation, and energy to the private sector. Eni serves as an incubator for in-house legal talent, in much the same way that GE does in the US. Cova of Paul Hastings notes that the general counsel of Pirelli, Fiat, Unilever Italia and Edison are all, like himself, Eni alumni.

It is almost inevitable that Eni would serve such a role. The energy business is, by its nature, global. And, notes Eni director of legal affairs Massimo Mantovani (pictured above right), English is the lingua franca of the industry, so Eni always hired bilingual lawyers.

Mantovani, besides heading Eni’s legal department, is the first Italian general counsel to sit on a large corporation’s executive committee; he was named to that post in 2005. Eni management, he says, is a pioneer in raising the status of the chief legal officer: “Our company sees the added value. Lawyers are not here only to treat problems.”

The 44-year-old Mantovani is typical of his generation. Fluent in English, he graduated first from the Universita Statale di Milano, then went on to earn an LLM at King’s College London. He is licensed to practise law both in Italy and in the UK.

His former colleague Cova calls Mantovani a “transformational agent” in Italian legal culture. Since becoming Eni’s top lawyer in 2005, Mantovani has reorganised the legal department into four main areas and energised the lawyers there. He boasts that the average age of ‘first-line’ lawyers who answer to the GC used to be 57; it is now 43.

And, like GE, Eni’s law department has a global reach. The legal group boasts 225 lawyers, with an additional 70 support staff. About a third of Eni’s lawyers are licensed to practise in other countries and those lawyers work in 15 countries around the globe — even in hot spots like Iran and Angola.

If the corporate counsel job itself sounds more and more like the US model, Italian salaries decidedly do not. No-one would speak for attribution on salaries for this article but corporate counsel in Italy typically start at around E30,000 (£24,000) a year. The next step is roughly equivalent to senior counsel and earns about E110,000 (£87,000), while general counsel might take in about $300,000 (£237,000) in salary.

Five years ago, Italians were riveted by a TV miniseries called Best of Youth. It told the story, through the eyes of two Roman brothers, of the country’s political and social upheavals of the past few decades. There is an early scene in which a professor says to one of the brothers: “Do you have any ambition? Then leave Italy. Go to London, Paris or America.”

The new breed takes the professor’s advice to heart but, unlike most Italians of a century ago, these new travellers usually return. Why? “I wanted to rejoin my family and contribute to the growth of my country,” says Marco Pierettori, 35, head of legal, compliance and audit division of Milan-based Lehman Brothers International (Europe) — Italian Branch. Courtesy of a Fulbright scholarship, Pierettori worked on an LLM at the University of Virginia in 1999 and then spent a year at Davis Polk & Wardwell in New York.

They may return, but they are not quite the same. These lawyers bring lessons they learned abroad to their new jobs in Italy. Pierettori, for example, says he has learned to communicate better by speaking more simply and directly. He says that makes him stand out in a business culture that usually prizes ambiguous and florid language over clarity.

Massimiliano ‘Max’ Maestretti also learned skills abroad that he brought back to Italy. Maestretti, 40, general counsel of Ferrari in Maranello, is actually a Swiss citizen from Ticino, the Italian-speaking part of Switzerland, and commutes home to Lugano every weekend (no, not in a Ferrari).

Still, Maestretti fits right in with his counterparts at other Italian companies. With a dual degree in business administration and law, he worked in Switzerland for a year as a tax consultant at Arthur Andersen. He spent 1999 as an associate at New York’s Carter Ledyard & Milburn. When he returned to Switzerland, he worked for a Lugano firm whose clients included Ferrari’s Formula One (F1) racing department. Ferrari’s then chief executive officer, Jean Todt, hired Maestretti as GC in 2006. (Todt left the company this spring.)

Maestretti made headlines last year by leading a battle against the McLaren F1 team on behalf of Ferrari. Designs for Ferrari’s latest race cars showed up on McLaren computers and Ferrari went before the International Automobile Federation, the governing body of F1 racing, with a complaint. Eventually, Maestretti led a team of seven outside counsel, from Italy, Switzerland and the UK, to victory — a fine of $100m (£50.2m), the most severe penalty ever meted out to a racing team in the federation’s history. Maestretti cites organisational lessons he learned at Carter Ledyard as helping him do his job at Ferrari, where he supervises five other in-house lawyers.

Maestretti’s feat is quite an accomplishment for a small team — but perhaps not surprising. GE’s Resnick says that when he brings his Italian colleagues together with other Europeans, the Italians, perhaps because they have dealt with obstinate bureaucracies and red tape for most of their lives, usually come up with the most creative solutions.

Another difference? “They aren’t wait--ing for the phone to ring any more,” Resnick says. “They are making the calls.”

A version of this article also appeared in the July edition of Corporate Counsel, Legal Week’s sister title.

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