The Legal's General Counsel Breakfast

The Legal Intelligencer will host a General Counsel Breakfast on Tuesday, April 16, gathering the region's in-house leaders for an interactive panel discussion of the biggest challenges facing GCs in 2013. General counsel and chief legal officers are invited to the complimentary breakfast, which will be held from 8:30 to 10 a.m. at the Four Seasons Hotel, 1 Logan Square, Philadelphia.

The Legal's General Counsel Breakfast

The Legal Intelligencer will host a General Counsel Breakfast on Tuesday, April 16, gathering the region's in-house leaders for an interactive panel discussion of the biggest challenges facing GCs in 2013. General counsel and chief legal officers are invited to the complimentary breakfast, which will be held from 8:30 to 10 a.m. at the Four Seasons Hotel, 1 Logan Square, Philadelphia.

Bits Blog: Twitter General Counsel Leaves as Company Prepares to Go Public

DealBook: Wesley Clark, Retired General, Joins Blackstone as an Adviser

Lucy Nicholson/ReutersWesley K. Clark will focus on deals in the energy sector.

Wesley K. Clark, a retired Army general and onetime supreme allied commander in Europe for NATO, has joined the Blackstone Group as a deal adviser in the energy sector.

General Clark will also serve as a director of Fisterra Energy, a company formed by Blackstone and a management team led by Pedro Barriuso, a former executive chairman of Element Power. Fisterra focuses on developing and running power projects in Latin America, Europe and the Middle East.

Lars Thunell, a former head of the World Bank‘s financing arm, will also join Blackstone as an adviser and Fisterra as a director.

General Clark is the second former Army general to join a private equity firm in as many months. Last month, David H. Petraeus, a retired four-star general and former director of the Central Intelligence Agency, was hired by Kohlberg Kravis Roberts to lead its KKR Global Institute.

Since retiring from the Army and briefly running for the Democratic presidential nomination in 2004, General Clark has turned to business matters. He founded a consulting firm, Wesley K. Clark & Associates, that advises clients in a number of areas, including energy.

He is also a co-chairman of Growth Energy, a group representing the American ethanol industry, and a director of BNK Petroleum, an independent oil exploration company.

“Helping countries overcome their energy challenges and develop energy security is critical to economic growth and sustainable development,” General Clark said in a statement. “I am pleased to join Fisterra’s board of directors and look forward to supporting the team as they work to accomplish their goals.”

Greeks Stage General Strike Against Austerity

The Greek protest came as workers in Asia, including Bangladeshis infuriated by the lethal collapse of a garment factory, demonstrated in cities including the capitals of Cambodia, Indonesia and the Philippines. In Istanbul, riot police officers sprayed throngs of people with water and tear gas as they gathered for a rally, defying an official ban.

Labor unions in Spain called for rallies in more than 80 cities, news reports said, while protests were also scheduled in Portugal. In France, the bitterly divided labor movement called for hundreds of demonstrations across the country, with rival union confederations holding separate marches.

But, initial reports said, most protests went off quietly, including those in Athens.

On the streets of Paris, the far-right National Front, led by Marine Le Pen, held its annual May 1 march through the city center, seeking to draw support from disaffected voters at a time when French growth has faltered, unemployment is at record levels and the Socialist government is caught between demands from the right for greater cuts in public spending and complaints from the left that it is not socialist enough.

Ms. Le Pen’s supporters waved French red, white and blue flags outside the Palais Garnier opera house in central Paris. She said the country was “sinking in an absurd policy of endless austerity.”

Inveighing against the influence of big business, the European Union in general and Germany in particular, she ascribed French woes to “always saying yes to Brussels; to Berlin, of course; and in all circumstances to the magnates of high finance.” The crowd seemed smaller than it was a year ago, when the country was seized with election fever. Since then, however, many Europeans have sensed a deepening malaise with no prospect of a rapid return to a sense of well-being.

Such are Europe’s woes that the newly elected Pope Francis urged business and political leaders on Wednesday to do more to create jobs.

“And here I think of the difficulties that, in various countries, today afflict the world of work and businesses,” he told tens of thousands of people gathered for his weekly general audience in St. Peter’s Square in Vatican City.

“I think of how many, and not just young people, are unemployed, many times due to a purely economic conception of society, which seeks selfish profit, beyond the parameters of social justice,” the pope said. “I wish to extend an invitation to solidarity to everyone, and I would like to encourage those in public office to make every effort to give new impetus to employment.”

The nationwide walkout in Greece was called by the country’s two main labor unions, which represent two and a half million workers and have led resistance to three years of economic overhauls that have cut salaries and pensions while increasing taxes.

With public anger giving way to resignation after a seemingly inexorable cycle of belt tightening in exchange for foreign rescue loans, the unions called for mass participation in the strike to protest “a catastrophic austerity drive” that has driven unemployment above 27 percent — the highest rate in the European Union — and to slightly less than 60 percent among those younger than 25.

The unions’ appeal failed to draw a large crowd, however, with about 10,000 Greeks taking to the streets of the capital, according to police estimates, for a demonstration that was both peaceful and one of the smallest in recent months. “There were no problems,” a police spokesman said as roads reopened to traffic and municipal garbage trucks swept discarded protest leaflets and coffee cups.

Although the strike brought much of Greek daily life to a halt on Wednesday, public transit services were running on a limited basis to allow Greeks to join rallies. In Athens, as in other major cities, police units were out in force to guard against violence that has marred demonstrations near the Parliament building in the past.

Ferries remained in ports and trains in depots, but flights operated normally because air traffic controllers did not join the strike.

The strike came just a few days after officials in the euro zone approved the release of 2.8 billion euros, or $3.7 billion, in rescue financing for Greece after Parliament ratified a new raft of economic reforms, including a politically contentious decision to lay off 15,000 civil servants by the end of next year.

The financing had been due in March but was delayed after talks between the government and officials of Greece’s troika of foreign lenders — the European Commission, the European Central Bank and the International Monetary Fund — broke down over the troika’s demands for the civil service cuts.

The country’s governing coalition, which has come under strain as it pushes its painful austerity agenda, must now enforce agreed-upon measures, laying off 2,000 civil servants by the end of June and pushing forward a stalled project to privatize state assets. It faces strong opposition by its main political rival, the leftist party Syriza, which wants Greece to renege on its loan agreement with the troika and is neck and neck in opinion polls with the conservative New Democracy, the head of the shaky three-party coalition.

The European Union and the International Monetary Fund have extended to Greece two foreign bailouts worth $317 billion over the past three years, meting out the aid in installments in exchange for austerity measures and overhauls.

Niki Kitsantonis reported from Athens, and Alan Cowell from Paris. Elisabetta Povoledo contributed reporting from Rome.

This article has been revised to reflect the following correction:

Correction: May 1, 2013

An earlier version of this article overstated the effect of the worker strike in Greece. Schools were already closed for the Greek Orthodox Easter break; they did not close because of the strike.

The Legal's General Counsel Breakfast

The Legal Intelligencer will host a General Counsel Breakfast on Tuesday, April 16, gathering the region's in-house leaders for an interactive panel discussion of the biggest challenges facing GCs in 2013. General counsel and chief legal officers are invited to the complimentary breakfast, which will be held from 8:30 to 10 a.m. at the Four Seasons Hotel, 1 Logan Square, Philadelphia.

President Lincoln's Lessons for General Counsel

President Abraham Lincoln
Photo: Alexander Gardner, Nov. 8 1863, via Wikimedia Commons

The smart money predicts that the film Lincoln will sweep the Oscars. Where Hollywood goes, so will go the nation. Here are six lessons general counsel can learn from the 16th president.

No. 1: Mission over ego. Necessity, not vanity, drove Lincoln's decision-making during the Civil War. Check out this dramatic passage from David Von Drehle's book, Rise to Greatness: Abraham Lincoln and America's Most Perilous Year. General George B. McClellan commanded the Union's Army of the Potomac. He was young, arrogant and disrespectful to the president. Once, he even insulted Lincoln and an aide by leaving them, unacknowledged, in his living room, while striding past them to his upstairs bedroom for the night.

"The unpardonable arrogance of the epaulets," fumed the assistant. Lincoln quietly replied, "This is not the time to be making points of etiquette and personal dignity."

Simply put, Lincoln needed McClellan to organize an army that was, in Lincoln's view, "utterly demoralized." Von Drehle writes of Lincoln's shrewd assessment: "McClellan has the army with him … [and] we must use the tools we have; he excels in making others ready to fight."

Remember, when in doubt, dial back ego.

No. 2: Salvage if possible; fire when necessary. McClellan invaded Virginia in a brilliant amphibious landing, just like General Douglas MacArthur at Inchon, South Korea, but without any follow-up. McClellan implored Lincoln for unneeded reinforcements. While frustrated, Lincoln understood this: Firing someone is easy, but replacing him is harder.

Lincoln wrote to McClellan on April 9, 1862. Von Drehle quotes the letter: "It is the precise time to strike a blow. … I beg to assure you that I have never written you, or spoken to you, in greater kindness. But you must act." Von Drehle writes that this was Lincoln at his best, "combining force with sympathy."

It is a template of an effective memo to a subordinate or an outside firm: Question assumptions. Provide rationales. Explain the peril. Show empathy. End with direction. Once Lincoln had a more powerful political footing, he cashiered McClellan. But he tried.

No. 3: Acknowledge mistakes. Want the respect of subordinates? Seneca called loyalty, not obedience, "the holiest virtue in the human heart." Lincoln illuminates the way. And there is no better example than that laid out by the great historian James M. McPherson in Tried by War: Abraham Lincoln as Commander in Chief.

In July 1863, Lincoln was frustrated by Ulysses S. Grant's inability to conquer Vicksburg, a fortress of the Confederacy sitting atop the Mississippi, and openly questioned his strategy. Grant acted as his lights dictate and Vicksburg fell.

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Bingham McCutchen Partner to Become SEC General Counsel

By Andrew Ramonas All Articles 

The National Law Journal

January 10, 2013

A Washington, D.C.-based Bingham McCutchen partner will succeed Mark Cahn as the Securities and Exchange Commission's general counsel, the agency announced on Monday.

Geoffrey Aronow, a Bingham partner since 2008 and the head of the Enforcement Division of the U.S. Commodity Futures Trading Commission from 1995 to 1999, will become the SEC's chief legal officer later this month. Cahn left the SEC last week. The agency said in December that the former Wilmer Cutler Pickering Hale and Dorr partner would return to the private sector.

Aronow said in a written statement that he is "truly honored to re-enter public service" at the SEC.

"It is humbling to lead a dedicated staff of so many talented and distinguished lawyers in the Office of the General Counsel, and I look forward to working with them closely as we provide the wisest advice possible to Chairman [Elisse] Walter, the other Commissioners, and agency staff," he said.

Walter said in a written statement that Aronow has "the ideal combination of practical knowledge, expertise, and common sense" for the job.

"Geoff is a faithful steward of the securities laws with a comprehensive understanding of law enforcement who shares our commitment to excellence and passion for investor protection," Walter said.

This article first appeared on The BLT: The Blog of Legal Times.

Pa. Attorney General Asks for Expedited En Banc Argument on Act 13

State Attorney General Linda Kelly filed a petition on Friday asking the Commonwealth Court to hear en banc arguments on the constitutionality of Act 13 during the June arguments session scheduled to take place in Harrisburg.

Skadden Snags SanDisk General Counsel

SanDisk general counsel James Brelsford will join Skadden, Arps, Slate, Meagher & Flom as of counsel in the intellectual property group in early February.

Working from Palo Alto, Brelsford will advise clients on IP transactions and litigation as well as on how to monetize their patents. Brelsford, who announced he was leaving SanDisk Corp. to return to private practice late last month, will be at the company until December 7. The company has begun to look for Brelsford's replacement, and in-house lawyer Pilar Garcia will serve as acting general counsel during the search, Brelsford said.

Brelsford said he was drawn to Skadden by its strong footings in both Silicon Valley and Asia, where he sees a growing awareness of the value of IP as an asset class. He spent about a third of his time in Asia while at SanDisk, and he expects to do the same at Skadden.

Brelsford's first experience with the firm came about a decade ago, when he co-counseled a case with Skadden lawyers while he was a partner in the technology transactions and M&A group at Jones Day. Skadden began serving as outside counsel for SanDisk in 2008 and now advises the company on M&A, corporate governance and IP litigation, Brelsford said.

Kenton King, partner in charge of Skadden's Palo Alto office, said he approached Brelsford about joining the firm many times over the years. When Brelsford decided to return to the law firm fold earlier this year, King jumped at the chance to add him to the IP group.

"Jim is a seasoned veteran with tremendous experience and skills in an area that is highly important to our clients," he said. "You can't walk into a boardroom in Silicon Valley these days without discussing IP monetization and strategy."

With back-to-back in-house posts under his belt, Brelsford said of counsel is an appropriate post for him as he returns to the law firm fold. He noted that he is interested in becoming a partner at Skadden, though he is not overly focused on his title.

"What really matters is what do you do when you get in," he said. "Everything else sorts itself out."

Tesla's General Counsel Steps Down

Eric Whitaker, former general counsel at Tesla Motors
Image: Jason Doiy/The Recorder

After two years as general counsel at Tesla Motors, Eric Whitaker has stepped down from his post at the electric carmaker.

Whitaker, who resigned earlier this month, said he cut outside legal spending by 70 percent, quadrupled the number of in-house attorneys and helped build the company's patent portfolio during his tenure.

"We wish him the best of luck with his next endeavor," Tesla communications manager Shanna Hendriks wrote in an email. She declined to comment on the search for Whitaker's successor.

"When I accepted the job at Tesla, it had a reputation of being a very difficult environment for lawyers," Whitaker said. "In the last two years, we have shown that lawyers can be effective and successful there."

Whitaker was Tesla's third general counsel in just more than three years. Former Yahoo general counsel Jonathan Sobel, who took the reins from Craig Harding in September 2009, resigned after several months. His departure left the company without a general counsel as it conducted its initial public offering in 2010.

Whitaker said he decided to leave Tesla before securing his next job so he would have ample time to weigh his options. He is in talks with several companies and has already received a job offer.

The company has had to confront various legal hurdles to grow. Certain states, for example, bar manufacturers from owning dealerships directly, Whitaker noted. In one of his last efforts on behalf of Tesla, Whitaker fought a lawsuit filed by the Massachusetts State Automobile Dealers Association to stop the company from operating a dealership in the state.

Whitaker said that he was "jubilant" when he learned Monday that the plaintiffs' request for a preliminary injunction had been denied earlier this month. Massachusetts State Automobile Dealers Association v. Tesla Motors, 01691B, was the first formal legal action taken against Tesla by a dealership, and Whitaker said he is now confident that the company will be able to fend off objections in other states.

"It is really critical for the company that it be able to implement its sales and distribution strategy as planned," he said.

Pa. Attorney General Asks for Expedited En Banc Argument on Act 13

State Attorney General Linda Kelly filed a petition on Friday asking the Commonwealth Court to hear en banc arguments on the constitutionality of Act 13 during the June arguments session scheduled to take place in Harrisburg.

General Mills GC on Laying the Foundation for a More Diverse Profession

General Mills' Roderick Palmore

The Leadership Council on Legal Diversity was launched three years ago on the premise that getting law firm managing partners and general counsel into the same room to tackle diversity in the legal profession -- or the lack thereof -- would energize the legal diversity movement.

Membership in the organization has grown from 19 founding law firms and legal departments to 209, and the council has launched a number of initiatives geared toward helping minority lawyers and law students gain leadership skills.

Its LCLD Fellows Program, which pairs promising young attorneys with mentors and offers conferences and other leadership training, has had 250 participants in two years. The council's law student mentoring program has attracted 1,420 participants in 25 cities. A more intensive program that pairs 1Ls with mentors and helps them form networks of their peers has tripled in size during the past year.

General Mills Inc. General Counsel Roderick Palmore has been a driving force behind the council, but will step down as its chairman this week during the council's annual meeting; succeeding him will be Hunton & Williams managing partner Wally Martinez. The National Law Journal spoke with Palmore about the council's work. His answers have been edited for length.

The National Law Journal: Why are you stepping down as chairman?

Rick Palmore: I just think it's time. I've been chair since the founding of the organization. I want this organization to have legs well beyond me, obviously. We've got the leadership, so I just think it's time.

NLJ: What do see as the council's biggest accomplishments thus far?

RP: First of all, I think one of our accomplishments has been getting the leaders of the profession -- the managing partners and the general counsel -- together in one room to collaborate and work together on this issue. I think, historically, that firms and companies have pointed the finger at each other, and I don't think that's been the most productive way to approach the issue.

Second, we're talking about diversity in a different way. We are focusing on the fact that this is a critical part of the talent imperative that each one of our organizations has. I don't mean to suggest that it's a new way of looking at diversity, but all too often diversity has been thought of a one-off -- something that's nice to have. In tough times, people think we can afford to overlook it, when in reality it's a central part of the talent challenges that we all face. We've got to have the best talent available of all stripes for our organizations to thrive in what is a hypercompetitive world.

Third, we are developing substantive programs together that we think will drive this imperative in a substantive way. The best example is our LCLD Fellows program, in which we take top talent, high-potential people from our organizations, and bring them together not to teach them to be good lawyers -- because they've already been identified as high-level practitioners -- but to give them experiences that will facilitate their careers. Help them navigate their organizations and the profession.

NLJ: The council has seen a lot of growth over the past three years.

RP: Yes, that's been gratifying. I take that to mean that people are recognizing that we're here trying to do things that are substantive and worthwhile. They see the value in that. It's a tough time economically, obviously, and it's a cynical time in just about every way. For people to see yet another diversity organization and decide that they should sign on in significant numbers is gratifying.

NLJ: What do you think your LCLD fellows and law students are getting out of their experience with the council?

RP: This is the kind of experience that I think they have thirsted for. It's different, and it gives them a level of exposure within their organizations and outside their organizations that they have not had before. It's been great to see.

NLJ: Do you think the council's work has had an impact on the profession as a whole yet?

RP: The short answer is no. It would have been presumptuous to think that in three years we would get there. This is going to be a slog. That's the reality. We didn't get here in a minute; we're not going to resolve this in a minute. If this issue was easy to solve in a short period of time, it would have been solved many years ago. We have to be committed and tenacious about this.

Do I think we're making progress and having an impact? Absolutely. Have we turned around the profession? Absolutely not. What we're trying to do is set it up so in the years to come, we can say we made a difference and there was a step change in how the profession was performing and how we're thinking about talent.

NLJ: What do you see as the biggest challenges for diversity efforts going forward?

RP: There are a couple of things. One is that the individuals and organizations that get it recognize the centrality of this to the business enterprise. In a lot of cases, that's a huge challenge -- getting folks to recognize that this is about getting our organization in the best competitive posture and utilizing our talent in a way that's smarter. If we can get more efficient about it -- by that I mean we optimally utilize the talent that comes into our organizations -- we'll be much better off. To be crass about it, we'll make more money.

The second challenge is what I call diversity fatigue. This is a decades-long struggle, and people are tired. I get that. That's why it's important for this effort to be different and try a different approach. The third is -- how do I put this? -- the "if it's good for you, it must be bad for me" syndrome, in which we're all pitted against each other. Honestly, that's just not the way it works.