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1 février, 2008 10:02

Alana Roberts

Daily Business Review

01-31-2008

Akerman Senterfitt, which has been plagued by a recent wave of attorney defections and partner dissatisfaction, has stepped up recruiting efforts by offering headhunters unusually high fees to land corporate lawyers.

With the recruiting push came news of the departure of another high-profile lawyer. Robert Fernandez, an of counsel attorney who served as deputy general counsel to former Gov. Jeb Bush, is leaving to launch his own practice.

Recent departures from Akerman's Miami office now total 10 including one-time heads of its litigation and immigration practices. The firm has also lost lawyers in its other offices.

Last year, Akerman suffered several other key defections, including the former chair of its corporate securities practice, Kara L. MacCullough, who joined Holland & Knight with two other Akerman shareholders.

Akerman has contacted several outside headhunters offering a 30 percent contingency fee as a carrot to coax them to send corporate associate candidates its way first.

The rate is a high premium for the South Florida market, said both in-house and external legal recruiters.

"Most headhunter fees in our community are either 20 percent of the attorney's starting salary or 25 percent," said an industry insider who asked not be named.

The premium was a sign the firm is desperate to recruit new talent, said a legal recruiter who asked not be named.

Several law firm leaders and hiring partners said they have never paid such a high fee to a recruiter.

Harvey Gurland, administrative partner in Duane Morris' Miami office, said the firm has never paid 30 percent during his nine years with the firm. Last March, the firm hired former Akerman trusts and estates attorney David Carlisle.

"I have never had a situation of paying a recruiter in that 30 percent range," Gurland said. "We haven't found it necessary to in order to find people that would fit our culture."

Abbe Bunt of Bunt Legal Search in Fort Lauderdale, Fla., said occasional bumps in contingency fees for headhunters aren't unheard of if a firm needs attorneys in a particular area.

"This is not the first time this has ever been done in our community," she said. "It's to capture the attention of the headhunters and to bring it front and center on our plate."

Akerman president Robert Zinn spoke briefly to the Daily Business Review on Tuesday but said he was busy with meetings and didn't comment for this article before deadline Wednesday.

The firm also announced Wednesday that the head of the firm's real estate practice, Andrew Smulian, was named chairman of the firm. He replaces J. Thomas Cardwell.

Sources familiar with the firm have said the firm's aggressive and expensive expansion efforts nationwide have challenged Akerman to bring in enough revenue to meet its budget goals.

Zinn acknowledged earlier this month, "We may have gotten a little ahead of ourselves" when the firm expanded to Washington and New York.

The Daily Business Review reported earlier this month that many shareholders are upset over Akerman's compensation structure and a recent flat-percentage capital contribution system tied to the firm's annual budget projections.

And sources have said they expect more defections.

A hiring partner at a large firm who declined to be named said he has seen more resumes from Akerman attorneys at all levels than before.

But others said the number of Akerman resumes in circulation isn't any higher than before and is on par with the number of resumes from other firms.

Bunt sees pluses at Akerman: Its search for corporate associates indicates the firm is healthy and has work to do.

"They wouldn't be hiring corporate people without corporate work," she said. "I don't sit privy to the finances of the firm. I can only go by the fact that they continue to need people and that there's work there to be done."

Fernandez is moving into the Coral Gables, Fla., offices of Miguel De Grandy, a lobbyist and former Republican state representative. But Fernandez said he will have his own practice within DeGrandy's office and they may work together on some cases.

As of counsel at Akerman since 2005, his compensation package differed from that of equity partners, and he didn't share some partners' complaints that they weren't paid what they expected last year because the firm missed its budget projections for two consecutive years, required them to make large 401(k) contributions and increased capital contributions.

"I had my own individual deal which I was happy with," Fernandez said. "Having said that, this seemed like a great opportunity for me to potentially do better and have the flexibility of being my own boss. My bottom line is I've left with Akerman on very good terms."

With more than 500 attorneys and consultants, Akerman Senterfitt has offices in Miami, Fort Lauderdale, West Palm Beach, Tampa, Jacksonville, Orlando, Tallahassee, New York, Los Angeles, Vienna, Va., and Madison, Wis.

While Akerman is offering the premium for corporate lawyers, most of its recent defections have been in the firm's litigation department.

Larry Silverman, the former chair of Akerman's litigation department, left Akerman this month along with fellow litigation shareholders James Sammataro and Scott Cosgrove to form their own boutique litigation shop.

Labor and employment shareholders James Crosland, David Miller and Denise Heekin left to join Bryant Miller & Olive of Miami.

Brian Garcia, a former chair of Akerman's immigration practice, left to join Holland & Knight; former litigation shareholder Sean Santini joined Boyd Mustelier Smith & Parker & Santini; and former labor and employment partner Marlene Quintana left for GrayRobinson.

Silverman said his departure had nothing to do with the complaints of shareholders. Rather he said he found it difficult to acquire new clients because of conflicts of interest with existing clients.

"I have no criticism of the way Akerman is structured or the way it is operating," he said. "We did better [in 2007] than we did the year before. Revenues were up 6 to 7 percent. It's the best year we ever had."