Reuters Lists 'Linchpin' Partners Still at Dewey & LeBoeuf Who Are 'Critical to the Firm's Future'
Despite the departure of approximately 50 partners since the beginning of 2012 and an effort to deal with a high debtload and lower-than-expected revenue that reportedly has led the law firm to defer a portion of compensation to some partners, Dewey & LeBoeuf is still on a viable business course, its leaders say.
They attribute many of the departures to a decision by the law firm to downsize and thus increase its profitability, Reuters reports.
The latest to announce his exit is corporate finance partner Richard B. Spitzer, who will be joining two other former Dewey partners at Mayer Brown, the Wall Street Journal Law Blog reports.
However, the departure of even a small number of rainmaker partners still remaining at Dewey could change that situation significantly, Reuters says. Citing sources including a current partner and a former partner at Dewey, five legal recruiters and consultants and a managing partner of another major law firm, some of which are unidentified, the news agency says Dewey could be “just a few key defections away from the abyss.”
As Robert Kinney of Kinney Recruiting in Austin, Texas, puts it: “A firm’s survival can come down to a very few key individuals.”
At Dewey, those “linchpin” individuals described by Reuters as “critical to the firm’s future” include corporate partner Bruce Bennett; bankruptcy practitioner Martin Bienenstock; regulatory and corporate governance partner Ralph Ferrara; securities partner Michael Fitzgerald; litigator Jeffrey Kessler; mergers and acquisitions specialist Morton Pierce; and international business partner Berge Setrakian.
Dewey, which is based in New York, had about 1,000 lawyers and 300 partners as of the end of 2011. In the process of building the firm by acquiring more partners laterally it has wound up with an unusual $125 million in bond debt and, according to two unidentified former partners, has had to defer a portion of compensation to some partners in recent months, the news agency says.
Related coverage:
Daily Journal (sub. req): “Dewey guarantee problem includes legacy partners”
Legal Week: “Dewey to forge long-term incentive plan to retain partners”
