Law Firms
As O’Melveny Chair Pushes for International Expansion, Criticism Grows
Posted Jul 30, 2008, 06:10 am CST
By Debra Cassens Weiss
O'Melveny & Myers chairman Arthur “A.B.” Culvahouse is facing his own election battle even as he leads the search for John McCain’s running mate.
Culvahouse, former White House counsel to President Reagan, has served as O’Melveny chairman for two terms encompassing eight years. Sources told the Daily Journal (sub. req.) that his chances for a new term are uncertain.
As chairman, Culvahouse pushed the firm’s international expansion and emphasized new practice areas such as private equity and white-collar criminal defense, the Daily Journal reports. The changes have led to discontent among some lawyers practicing at the firm’s Los Angeles base and in de-emphasized practice areas.
Profits per partner jumped 33 percent just one year after Culvahouse took over as O'Melveny chairman, but the figure has been flat for two years in a row, leading to more criticism, the story says.
Among the changes instituted by Culvahouse were a streamlined system of firm management and a performance-based compensation system. Some complain that the changes were made without much discussion and without much personal contact with the lawyers Culvahouse managed.
The story identifies one of Culvahouse’s most serious challengers as Washington, D.C., partner John Beisner, a top rainmaker who chairs the firm’s class action, mass torts and complex litigation practice. Supporters say he is likable and down-to-earth.
A group of loyal supporters still stands behind Culvahouse. Even a former O'Melveny lawyer who jumped law firms, Mark Scarsi, has respect for him. Scarsi told the Daily Journal that Culvahouse had the kind of vision needed to give the firm an international presence. "You can't be a national firm and be a Los Angeles firm," Scarsi said. "He de-emphazised L.A. a bit, and some people in the L.A. office were less happy about that."