Baptism of Fireplace: Hogan Lovells’ new bosses reveal report outcomes as PEP kicks off $ 2M
Taking the helm of a global law firm is no small feat at best, let alone amid a global pandemic. However, Hogan Lovells chief executive Miguel Zaldivar and deputy Michael Davison, who took on their roles last summer, had cause for celebration when the couple posted solid financial results, including an increase in earnings per equity partner (PEP) by 31% $ 1.97 million versus $ 1.5 million in 2019.
Global revenue increased 3% to $ 2.3 billion in 2020 from $ 2.25 billion a year earlier, and revenue per attorney (RPL) increased 4% from $ 850,000 to $ 884,000. The geographic performance largely corresponded to the performance of the previous year. America accounted for around 49% of total billing, EMEA 45% and Asia Pacific 6%.
In terms of practice, business and finance made up 41% of total bills. Worldwide regulatory and intellectual property, media and technology (IPMT) generated 31%. and litigation, arbitration and employment 28%.
In an interview with Legal Business, Zaldivar remarked (pictured): “The highlight of the year for me was the change of the new management team in the middle of the pandemic. We took the first step and the company has achieved the highest sales and profits in history. The credit for this goes to the partnership. ‘
He explained the significant PEP increase as follows: “We’re not an outlier in achieving double-digit PEP growth, and so have many other companies. The main contribution was not a decrease in equity partners. In 2020 we introduced a minimum compensation for some partners to protect them without any financial risk to the company. We decided this would be prudent given the market volatility and this has resulted in an increase in the PEP. ‘
He praised Davison and teams around the world for their impressive financial discipline. “Our lawyers create timesheets every day and send out invoices every month. Customers paid and the cash flows were positive and healthy. Michael enforced the rules! ‘
But it wasn’t all easy to sail, as Davison admits. ‘We will look back on this as a uniquely challenging situation. We kept working, but in a completely different way and supporting each other, but it wasn’t easy. ‘He pointed to a voluntary layoff program that cut headcounts in the US and the UK as a cost-saving measure.
The couple provided a long list of standout topics for the year, including business and finance. She advised Marvell Technology on its $ 9 billion acquisition of Inphi and worked for Arm, SoftBank’s UK-based multinational semiconductor and software design company, on a $ 40 billion acquisition by NVIDIA.
The firm acted on behalf of ENRC in relation to high profile claims against the Serious Fraud Office and its former legal advisors and ensured Uber great success in regaining its London license and the right to continue working in London.
Looking ahead, Zaldivar insists the company will continue to invest in the engines of London, Washington DC and Germany, as well as the Paris office.
It is clear that the US and Asia business under new leadership will continue to be at the forefront of the company’s ambitions. Conclusion Zaldivar: ‘In the USA we challenge the partnership to be more successful in New York, California and Texas. We have to grow in the US. We plan to grow organically in Shanghai, Beijing and Hong Kong and add more corporate lawyers. We want to be stronger in China. This is the future of Hogan Lovells. ‘