"I am not what happened to me, I am what I choose to become,” says Chris Gardner (a role essayed by Will Smith) in the 2006 inspirational Hollywood hit ‘The Pursuit of Happyness’.
Sixteen years later, it would not be a stretch to say that many Indian corporate lawyers have undergone the Chris Gardner metamorphosis after the Covid-19 pandemic set in.
That metamorphosis has led to them joining rival firms (sometimes in hordes), taking up in-house roles at corporates, setting up their own outfits, and in some cases, quitting the profession altogether.
A toxic cocktail of favouritism by partners, poor work-life balance, lack of adequate compensation, mental health issues, questionable promotions, and no say in decisions impacting the work environment have left legal eagles in corporate law firms a jaded lot. These factors emerged as key sore points in the Best Law Firms To Work Report – 2022 by legal recruiting and consulting firm Vahura.
Let’s take a look at some of the key firm-wide movements so far in 2022, among domestic law firms.
AN EXODUS
When was the last time you heard of more than 60 corporate lawyers switching from one corporate law firm to a rival in one big-bang move?
Well, that's exactly what happened when the Anand Desai-led DSK Legal announced the entry of 63 lawyers across multiple verticals from L&L Partners (now ‘Luthra and Luthra Law Offices India’) in July. The move, arguably the biggest crossover deal in corporate law firms at one go, has led to DSK Legal (which has absorbed five teams from rival firms earlier) hitting a size of more than 250 lawyers in three and a half years.
In an interaction with Moneycontrol shortly after the move, Desai said it was unplanned and a big decision.
“We thought the chemistry worked well in the very first interaction, and it all moved very quickly thereafter — all of us felt that like-minded people were coming together, which augured very well. For the first time in our 21 years of existence, our Delhi office has more lawyers than our Mumbai office,” Desai had told Moneycontrol in July.
The second instance of a large number of lawyers jumping ship was when Gautam Saha, a senior partner at AZB & Partners, moved on after a stint of nearly two decades to join law firm Talwar Thakore & Associates with a team of 27 lawyers, to head the latter’s NCR office.
Incidentally, in December 2021, rival law firm Trilegal had poached a quartet of four lawyers led by M&A and private equity specialist Sai Krishna Bharathan from AZB & Partners.
Five partners, along with their respective teams (a total of around 40 lawyers) also moved in June and July from Algo Partners to Argus Partners.
Last week, law firm S&R Associates hired a seven-lawyer M&A team in Mumbai from Luthra & Luthra Law Offices, led by partner William Vivian John.
That’s not all; back in November 2021, L&L Partners hired 15 lawyers from Indus Law. In July this year, in a bid to bolster its disputes practice, the firm announced that Krishnayan Sen, Founding Partner and Head of Disputes Practice at Verus, would merge his practice and join them as a Partner in New Delhi with his team.
THE ENTREPRENEURIAL SPIRIT
In some cases, lawyers have moved on from diversified business groups and joined newly birthed law firms. For instance, ex-Tata Sons General Counsel Shuva Mandal stepped down after a stint of four years to join Anagram Partners as a Partner in June 2021.
Read this: Tata Sons Legal Head Shuva Mandal, who led fight against Cyrus Mistry, Steps Down
Anagram Partners was set up by two ex-partners of law firm Nishith Desai Associates: Rajesh Simhan, who was the leader of the international tax team, and Simone Reis, co-head of the M&A practice.
Exits have also taken place at one of the oldest law firms in India, established in 1830. Abhay Jadeja and Varun Satiya quit Fort, Mumbai-based Crawford Bayley and Co in July following stints of 17 years and 10 years, respectively. They have set up a new law firm, Jadeja & Satiya, which will focus on alternative dispute resolution, commercial litigation and other white collar areas.
Highlighting the impact of Covid-19 on their decision, Jadeja, Managing Partner at the new firm, told Moneycontrol, “Covid-19 has affected everyone. This period forced many to reassess their relationship with their work and re-evaluate their priorities. For us, this period was an opportunity to step back, think and strengthen our resolve to achieve our goals.”
He added, “It was time to move ahead not just for personal growth but also to set into motion our vision to establish a firm that endures the ever-changing legal landscape.”
THE GENERAL COUNSEL FACTOR
India Inc’s GC or general counsel community has also witnessed a spate of changes in 2021 and 2022. A general counsel is the seniormost legal officer in a firm’s legal team and the primary source of internal legal advice for the CEO and the board. Sometimes, in large conglomerates, the role of a GC is wider and may also include policy, compliance, risk management and corporate governance work.
Here is a list of some of the key GC movements reported by Moneycontrol:
On March 29, 2021, Moneycontrol was the first to write about Sapan Gupta’s elevation as global general counsel at steel giant ArcelorMittal.
On April 5, 2021, we broke the story that Pratibha Jain of law firm Nishith Desai Associates was headed to Everstone Group as the group general counsel.
Speaking to Moneycontrol earlier this week, Jain echoed Abhay Jadeja’s views on the impact of the extended lockdown on career strategy. “During Covid, everyone got to rethink their priorities. A lot of the movement right now is a consequence of that. Normally, our profession is so busy there is no time to think beyond work,” she told Moneycontrol.
She added, “Staffing on a deal is a combination of three factors: the law firm, the partner, and the team. With all the movement, staffing of lawyers on a deal has become much tougher.”
Another general counsel, who chose to speak on condition of anonymity, said, “The churn (both in-house and at law firms in general) has indeed had an impact on ongoing deals and matters pending before courts or regulatory authorities. Companies may not want to acknowledge this as it can have an impact on ongoing relationships and continuity.”
Also in April, we reported that SAM (Shardul Amarchand Mangaldas) partner Roshan Thomas was joining India’s most valuable ed-tech startup Byju’s as group general counsel.
Then L&L Partner Damini Bhalla headed to IPO-bound food-delivery unicorn Zomato as the general counsel.
As far as the in-house (not handled by an external law firm) movement in 2022 is concerned, here are a few examples: Kaizad Adi Hazari switched from Arcelor Mittal Nippon Steel India to Glenmark Pharma; Kanaiya Thakker joined Adani Enterprises as Senior Vice President and Head (Legal) for the Natural Resources Business after a 9-year stint at Holcim India (Ambuja Cements Ltd); Cyril Amarchand Mangaldas partner Rishi Gautam joined Tata Consumer Products as Global General Counsel and on July 19, market regulator Sebi announced that it had appointed Pramod Rao, Group General Counsel of ICICI Bank as an Executive Director.
Rao had earlier served as a member of the Board of Directors of ICICI Securities Ltd., ICICI Prudential Trust Ltd., and ICICI Trusteeship Services Ltd, Sebi said in its statement.
The churn in the legal profession is serious. The numbers say it all.
EXISTENTIAL QUESTIONS
Asked to explain the ongoing churn in the legal industry, Desai, without referring to any specific case, said, "One big factor since Covid-19 is 'where am I happy. 'Where do I look forward to going to' and 'where can I speak freely’ are also key questions. Some people want money, some people want a position, while some people want a life.”
He recalls an incident during the pandemic when within a span of two hours, Rs 10,000 was collected from each Delhi partner to help a staff member in a medical emergency. “ The feeling that colleagues are there for each other is very important. The pandemic has made people realise the value of relationships,” he says.
Abhijit Joshi, founder of boutique law firm Veritas Legal, is also quick to highlight the impact of Covid-19. “You cannot ignore the effect of the pandemic. Existential questions came to the fore and a lot of it has boiled down to people getting tired of what they were doing and wanting to do something different,” he says.
Joshi adds, “The attrition post-pandemic is across sectors and while there could be business reasons for it, the pandemic has played a part.” Joshi was earlier CEO at AZB & Partners.
A senior partner at another law firm rues the exits of several promising youngsters during the peak of the pandemic. “They were done with the 18-hour workdays and sought more time with their families. They haven’t left the profession and some of them have taken up relatively relaxed roles in their hometowns,” he says, adding that “silent quitters” have also emerged on the scene of late. He spoke on condition of anonymity.
Silent quitters or quiet quitters are employees who work only as much as is required to keep the job and not lose it — nothing more, nothing less. They have no interest in exerting themselves and climbing the career ladder. They prefer playing it safe and easy.
In contrast, Ajay Bahl , Co-Founding Partner, AZB & Partners, has a different perspective on the pandemic factor. “The Covid effect on the legal profession has been somewhat overstated. The law hasn’t changed and that’s what we continue to advise on. What we have gained is the ability to do more and more virtually. Today, most law offices in India are more or less back to normal and people are relishing greater interaction versus the earlier phase of isolation,” he says.
MORE SKIN IN THE GAME?
The message from a few players in the Indian corporate law fraternity seems to be that going ahead, the environment will pivot towards “fairer” firms and not bigger and smaller or older and newer outfits.
"Firms where partners have a seat at the table, where partners have a fair and equitable ownership in the larger firm, where partners have a sense of permanency and they are not made to feel second class to a class of partners or a family, will retain and attract the best talent,” says Mohit Saraf, Managing Partner & Founder of law firm Saraf & Partners.
Suggesting that the current environment is a preparatory step towards taking on global peers, Saraf adds, “It is a movement towards self-determination in India. This trend will accelerate significantly in the years to come. This is the only way Indian law firms will be able to withstand the entry of foreign law firms into India.”
To be sure, Dentons has launched a "combination" with Indian law firm Link Legal, giving the global law firm a foothold in India's large legal market. This is the first time that a global player has combined with an Indian law firm.
Also read: Global major Dentons combines with Indian law firm Link Legal
Saraf & Partners was set up after Saraf split from L&L Partners founder Rajiv Luthra following a phase of bitter litigation. Since the split, L&L Partners has reclaimed its original identity of “Luthra and Luthra Law Offices India” and formed a new Executive Committee.
With the rise of new firms with top talent, do the traditional powerhouses have any cause for worry?
THE BIG VS SMALL DEBATE
Amid the frenetic legal movements, one needs to take note of the fact that most corporates and diversified conglomerates that are in expansion mode need the services of a full-service law firm, and that may not be possible for every player in the market. “In these scenarios, one needs large teams and coordination across multiple verticals. Smaller firms cannot compete for such assignments,” says the head of a law firm.
Speaking on condition of anonymity, the legal eagle feels the pandemic has heightened the shortage of talent and that the demand-supply gap for lawyers has widened considerably. “Many expected the pandemic to be a dead phase, but on the contrary, it led to a lot more legal work. Many lawyers got frustrated with the long working hours,” he explains.
Some industry veterans point to an interesting trend. They say the “herd instinct” of earlier is missing when it comes to students from top law schools — they are no longer making a beeline for top-tier corporate law firms and are joining smaller firms as well. On being asked why they explain that the definition of a “better platform” has become increasingly subjective.
As one veteran put it, “Compared to other businesses, in law firms, the ownership and brands are very closely linked. Some clients still say I go to an ‘ABC’ (founder or owner) and not ‘XYZ’ (the law firm). The system is not adequately institutionalised yet, unlike in certain overseas jurisdictions like the US. That phase hasn’t played out or been tested yet in modern India. “
Also Read: Better call Salve: Why corporate law is such a lucrative practice
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