Edwards Gibson Featured in Four Publications This Week: Legal Business, The Financial Times, The Lawyer’s Horizon and Bloomberg (twice)

November 2024

 

Our 83rd edition of Law Firm Partner Moves in London was featured in four publications this week: Legal Business’s article, “Laws of attraction – how elite firms are ramping up their talent retention tactics” by Elisha Juttla; The Financial Times’ article, “How top lawyers earn their bragging rights on pay” by Vanessa Houlder; The Lawyer’s Horizon article, “This is one talent game the magic circle isn’t playing” by Katy Dowell ; and Bloomberg Law’s article, “Big Law Risks Sharp Elbows as Firms Heap Massive Pay on Stars” by Roy Strom.

 

Legal Business examined the measures elite firms are taking to retain top talent amidst fierce competition. The article highlighted the highest number of lateral partner moves recorded in 2023, with 510 moves in London, continuing into 2024. Edwards Gibson's figures were used to emphasize the scale of lateral movement. Firms are implementing defensive mechanisms such as introducing salaried partners, reviewing exit terms, and overhauling partner pay structures to retain star performers. Director Scott Gibson was quoted, discussing how even some of the biggest and most profitable firms are scrambling to adjust their systems to better attract and retain top talent.

 

The Financial Times focused on how the arrival of high-paying US firms has pushed up top UK law firms’ charge-out rates by almost 40% over five years. The trend is driven by the rise of private equity and complex lawsuits, with several London partners now earning as much as $20 million. Director Scott Gibson provided insights on how top lawyers in London are now doing as well as bankers. The article also discussed the shift in the London legal market from traditional lock-step pay structures to a more personalized client relationship model similar to the US.

 

The Lawyer Horizon discussed how the magic circle firms are staging a hiring comeback but avoiding first-time partner hires. The article highlighted data from Edwards Gibson showing that partner hiring is currently running 27% above the five-year average. While other top firms are engaging in associate-to-partner hires, the magic circle firms prefer to build a homegrown partnership.

 

Bloomberg Law addressed the potential for "sharp elbows" behaviour as firms heap massive pay on star partners. Edwards Gibson’s research was used to show the impact of high compensation on partner behaviour, with Director Scott Gibson noting that the surge in pay is creating a star culture and partners are incentivized to seek top pay.

 

A second article by Bloomberg, titled, "Latham Loses UK Partners as US Competitors Rush Into London", examines a recent trend of high-profile partner departures from Latham & Watkins in London, where the firm has lost 11 UK partners to US competitors in 2024—more than double its usual annual attrition rate. Edwards Gibson provided data on these exits and noted an industry-wide increase in lateral moves in London, with Scott Gibson remarking on the firm's cult-like following now experiencing disruption due to market dynamics and changes to Latham’s compensation structure.

 

Click here to read the Legal Business article (paywall).

 

Click here to read The Financial Times article (paywall).

 

Click here to read The Lawyer article (paywall).

 

Click here and here to read the Bloomberg Law articles (paywall).

 

In case you missed it, read our full 83rd edition of Law Firm Partner Moves in London – for more than a decade, the publication of record for the London legal market – click here.