Legal News: Key Updates You Can't Miss! ⚖️

Bonus season gets underway as quartet of Bog Law Firms Fall in line with Milbank

According to internal memos, Paul Hastings and McDermott Will and Emery confirmed this week that they would match the scale, as have Cravath Swaine & Moore and Fried Frank.

The firms’ associates will get year-end bonuses ranging from $15,000 for the class of 2024 to $115,00 for the class of 2017 and special bonuses ranging from $6,000 to $25,000.

Big Law firms typically adjust their salary and bonus scales in short succession to remain competitive, though the latest round of bonus announcements is slightly unusual in that Milbank rolled out its special bonuses back in the summer. Its rivals did not immediately match them. The firm followed with its year-end bonuses memo on 11 November.

What does this mean for Law Firms?

1. Competitive Pressure among Firms

Big Law firms to attract and retain top talent, especially in a competitive market. When one firm announces higher bonuses, others often feel pressured to match or exceed those offers to remain attractive to associates. This ensures they retain high-performing lawyers and maintain their reputation as desirable employees.

2. Significance of Special Bonuses

Special bonuses beyond standard year-end bonuses reflect the firm’s acknowledgement of exceptional performance or market conditions. They may also indicate strong profitability or reward associates for working through particularly demanding periods. The delayed matching of special bonuses by competitors suggests that some firms were assessing financial performance or waiting to see market reactions before committing.

White & Case hires former A&O corporate chief

White & Case hired Richard Browne as a partner in its global M&A practice. Browne joins from A&O Shearman.

Browne began his career at legacy A&O in 1993 and later went on to serve as global co-head of the corporate practice and head of corporate in London. His expertise includes corporate governance and disclosure advice for FTSE 100 and 250 companies and other international corporations.

The hire comes after White & Case saw the return of Patrick Sarch to its global M&A practice in London in February. Sarch now heads up UK public M&A. Worked at White & Case between January 2017 and March 2021, moving to Hogan Lovells in March 2021.

What does this mean for Law Firms?

1. Strengthening Market Position

Hiring Richard Browne from prestigious firms like A&O Shearman enhances White & Case’s credibility and depth in M&A. Browne’s extensive experience, particularly in corporate governance and advising FTSE 100 and 250 companies brings valuable expertise that can attract high-profile clients and complex deals. This move strengthens the firm’s competitive edge in both domestic and international markets.

2. Client Relationships and Expansion 

Partners often bring established client relationships, which can lead to immediate business growth. Browne’s connections with FTSE-listed companies and international corporations could open new opportunities for White & Case, expanding its client base and reinforcing its position in the UK and global markets.

Commercial News: The Latest Insights You Need to Know! 📈

Huawei to launch phone with own software in sign of China-US splintering

China’s national technology champion Huawei is poised to launch its first flagship phone that can run its apps on a fully homegrown operating system, in the latest sign of how technology is splintering into competing US and Chinese ecosystems. The Mate 70 smartphone set to be released on Tuesday will feature HarmonyOS Next, which Huawei hopes to establish as a third major mobile operating system alongside Apple’s iOS and Google’s Android

What does this mean for Law Firms?

• Geopolitical Scrutiny: Given the ongoing US-China technology rivalry, Huawei's move will likely face intense scrutiny from Western regulators. Law firms with expertise in international trade and compliance may see increased demand for advice related to sanctions, export controls, and regulatory challenges.

• Data Privacy and Security: HarmonyOS's integration could raise data privacy concerns, particularly in regions with stringent data protection laws like the EU. Firms advising on GDPR and other data privacy frameworks will play a crucial role.

• Supply Chain Restructuring: Firms advising tech companies may handle legal challenges related to supply chain adjustments, especially if US companies are restricted from working with Huawei.

• Export Control Compliance: Law firms will play a key role in navigating complex export regulations, particularly for US-based companies dealing with Huawei-related restrictions.

Heathrow’s new biggest Shareholders backs airport expansion

Heathrow’s incoming largest shareholders have thrown its weight behind expanding the UK’s largest airport and said it would back management if it tried to build a third runway.

French private equity group Ardian agreed to buy a 23% stake in Heathrow in June, part of a £3.3bn shake-up in ownership at the airport which also saw Saudi Arabia’s sovereign wealth fund buy a stake.

With the deal expected to complete before the end of next month, Ardian’s head of infrastructure Mathias Burghardt told the Financial Times that Heathrow needed to expand in the coming years.

What does this mean for Law Firms?

• Project Structuring and Contracts: Law firms will play a critical role in structuring contracts for the third runway and other infrastructure projects. This includes drafting agreements with construction companies, architects, and suppliers.

• Public-Private Partnerships (PPPs): Firms may advise on PPP structures, ensuring compliance with UK laws and international investment standards.

• Aviation Regulation: Law firms will advise on UK and EU aviation laws, air traffic regulations, and airport expansion protocols. Compliance with the Civil Aviation Authority (CAA) and International Civil Aviation Organization (ICAO) standards will be essential.

• Foreign Investment Regulations: Given Saudi Arabia's involvement, firms may need to navigate foreign direct investment (FDI) rules and ensure compliance with UK national security laws.

• Financing Arrangements: Law firms will structure financing deals for the expansion, including advising on debt issuance, bond offerings, and securing investments from institutional partners.

• Investor Relations: Firms may help draft shareholder agreements and ensure Ardian’s interests align with other investors.

Legal Lingo Unpacked: Your Quick Terminology Breakdown! ⚖️

Understanding Mergers & Acquisitions

The terms mergers and acquisitions are often used interchangeably, however, they have slightly different meanings.

When a company takes over another and establishes itself as the new owner, the purchase is called an acquisition. Unfriendly or hostile takeover deals, in which the target companies do not wish to be purchased, are regarded as acquisitions. However, acquisitions can be done with the willing participation of both companies.

Mergers described two firms that join forces to move forward as a single new entity, rather than remain separately owned and operated. In general, the two firms are of approximately the same size, and this action is known as a merger of equals.

A deal can be classified as a merger or an acquisition based on whether the acquisition is friendly or hostile and how it is announced. In other words, the difference lies in how the deal is communicated to the target company’s board of directors, employees, and shareholders.