Byfield Bytes - February 24

Welcome to your February edition of Byfield Bytes – bringing you the biggest stories and issues impacting the business of law.

The news agenda has certainly had a transatlantic feel of late – with notably?strong annual results posted by many AM Law 100 firms. After a tough 2022, it was encouraging to see growth trajectories back in full swing, including here in London. It will be interesting to see whether the (cautiously!) optimistic current mood gives the UK headquartered firms a strong final quarter. All will be revealed in the spring.

February also witnessed the most nail-biting competition in recent legal industry history: PenDex. A competition looking for the best pens in the legal industry judged by top calligraphy connoisseurs (Legal Business editor?Nathalie Tidman and, erm, yours truly). The contest was hot, and we saw some real contenders, but the slick ballpoint pen from Clyde & Co pipped the post and snatched the gold. Special shout out to the other shortlisted pens from Bird & Bird, Clifford Chance, Freshfields, King & Spalding, and Travers Smith.

Back to the serious stuff – an eye-catching development was the news that Pogust Goodhead has announced that it will be introducing a synthetic equity program where they will pay their junior lawyers on a shareholder model, creating the potential for NQ lawyers to earn an additional ￡1-2 million. This adds fuel to the fire in the salary wars between firms and adds a further challenge for mid-market firms competing in the war for talent against US and magic circle rivals.

In other news,?The Financial Times?reported that?Latham & Watkins?is cutting off automatic access to its international databases for its Hong Kong-based lawyers in light of Beijing’s closer control of the territory. It will be interesting to see the actions other international firms take in this territory to combat this issue.

ESG continues to be near the top of the agenda.?The Lawyer?has reported that Freshfields has asked their employees to travel in economy on business trips to reduce the firm’s carbon emissions. The implementation of this policy will be worth keeping an eye on, given the demand for partners to undertake several long-haul flights and then deliver complex and often demanding services for their clients. However, it is positive that firms are taking steps to reduce their carbon footprint, even if certain individual policies might not curry favour with everyone.

Elsewhere, Freeths this month became the largest UK law firm to date to achieve B Corp accreditation, one of only eight firms to hold the status in the?The Lawyer?UK200. Mishcon de Reya previously explored B Corp accreditation in 2022, before exiting the?process after seven months. In an environment of increasing scrutiny of law firms’ ESG claims, it will be interesting to see whether more firms look to outside accreditations to reinforce their ESG credentials and demonstrate a commitment to accountability.

We also saw the government officially confirm that new legislation is expected to come into effect to clear victims of the post office scandal of wrongful convictions. As noted in last month’s newsletter, this is constitutionally sensitive. However, its proponents have recognised that this is an action responding to unique circumstances and will not set a precedent for the relationship between the Government, Parliament, and the judiciary. Check out the Counsel culture episode with John Hyde, The Deputy Editor of?The Law Society Gazette,?discussing his in-depth reporting on the controversy.

Big Questions for March

• After celebrating National Apprenticeship Week this month, will we see more law firms taking on apprentices in the future?
• Building on the important discussions held in LGBTQ+ History Month, what can law firms do to be more inclusive for LGBTQ-plus individuals?
• What measures are likely to be introduced in the Spring Budget and how these will impact firms and their clients?
• Will A&O Shearman glide serenely towards its conclusion or will there be a final storm in the waters?
• After Freeths became the first law firm in the UK Top 50 to attain B Corp accreditation, will other firms follow suit?

Post of the Month

https://www.dhirubhai.net/posts/krishnair1985_theweekinlaw-lawyers-lawfirms-activity-7160555468770131968-k5bb?utm_source=share&utm_medium=member_desktop

Lawyer Quote of the Month

Our quote of the month comes from?Linklaters managing partner Paul Lewis, speaking to?The Lawyer?about the firm’s new strategy for attracting top talent when moving into the US market, including deviating from its traditional lockstep model:

“We’ve been very open with the partnership, and the partnership has been very supportive of this, that we are quite prepared to go above our lockstep?to secure the top talent we need, so that is not an issue anymore,” he insisted.

“In terms of what we’ve done as a firm over the past two-and-a-half years, we now have a lot more flexibility on compensation, both inside and outside the US.”

Byfield Spotlight

• REPDEX: Byfield launched the first index to accurately measure the positive reputations of the world’s largest law firms in the top tier global business press. REPDEX benchmarks the profile of the top 20 global firms by revenue, and provides insights to drive effective, needle-moving thought leadership and communications strategies.Throughout the month we have been showcasing various results from the report. So far we have looked at the top overall, as well as the leaders for?firm news?and?thought leaders.For more information about benchmarking for your firm, or to receive your copy of the summary report, speak to Michael Evans or any of the Byfield team.

• The first instalment of our?Disputes and Investigations Monthly?series was released at the start of the month.For the episode, Meg was joined by Byfield Founder Gus Sellitto and Dina Hudson, Senior Consultant in our Disputes and Investigations practice, to discuss Byfield’s updated Disputes & Investigations PR service offering, the highlights from The Lawyer’s Top 20 cases for 2024, PR considerations amid investigations and legal disputes, Law360’s corporate crime cases to watch this year, and the importance of having a strong communications and PR strategy ahead of a cross-border trial.

• Senior Account Executive?Hattie Lunt?explores the use of WhatsApp for business?communications?and examines the potential implications, both internally and from a regulatory perspective, associated with using the messaging service.Read the full blog here:?https://byfieldconsultancy.com/whatsapp-the-unofficial-boardroom/

Things you might have missed…?

• Towards the start of the month, Meg was joined by John Hyde, Deputy News Editor at?The Law Society?Gazette for an episode of?Counsel Culture. They sat down to discuss the latest developments in the Post Office Inquiry including what the next phase looks like, the impact on the victims and the SRA’s involvement. They also spoke about the latest on Axiom Ince, analysing Pragnesh Modhwadia’s property company being shut down, the SRA’s review into consumer protection and the compensatory fund. Finally, they touched upon National Apprenticeship Week and how important apprenticeships have been for the legal industry.
• In another episode of?Counsel Culture, Meg was joined by Steven Barrett from Radcliffe Chambers to discuss when barristers should call themselves barristers and whether judges should be banned from using social media. They also spoke about Latham & Watkins’ decision to cut off automatic access to its international database for Hong Kong lawyers, and Freshfields Bruckhaus Deringer asking lawyers to opt for lower-class travel to meet sustainability targets. They concluded the episode by examining Pogust Goodhead’s new “synthetic equity program”.