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Lawyers, the new breed of CEOs

Some of the most influential companies in Australia are now headed by lawyers, writes Conrad Liveris.

user iconConrad Liveris 06 August 2018 Big Law
Lawyer, CEOs
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Universities tell us otherwise, but most people see and use the law degree as a pathway to being, well, a lawyer.

Few other options are rarely seriously considered.

For those that get admitted, career choices can be pretty narrow. You could work in commercial law, maybe in-house or start your own firm. It's all fairly predictable.

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There’s a notable lack of imagination in Australia about the use of the law degree in workplaces, especially after admission.

But a shift is happening in corporate Australia. Some who leave the law to become an executive are emerging as influential CEOs.

Recently, Shemara Wikramanayake was announced as the next CEO of financial juggernaut Macquarie. As an executive at the Group now she is responsible for an asset management division totalling almost $500 billion, and later this year will replace Nicholas Moore, who started out as a lawyer himself.

On the same day Hugh Marks, the CEO of Nine, also a lawyer, made news too by inking a deal to merge with Fairfax Media. He’s sewn up his own job as the CEO of the next-generation enterprise.

But outside the past week in Australian business there are other high-flying lawyers. Merren McArthur, CEO of Tigerair, is expected to be considered as the next Virgin Australia CEO.

Ming Long, who made history as the first Asian-woman to be CEO of an ASX200 company, also graduated with a law degree. She’s now helping clean up AMP as chairman of AMP Capital.

There’s also Tom O’Leary, former Wesfarmers executive and now CEO of resources company Iluka, who started his career as a lawyer.

Lawyers in executive management are different to those who become directors, who are, essentially, still there for their legal skills.

Executive management is a fundamentally different use of the skills they have been trained in.

Lawyers, traditionally, are advisers. Senior in-house counsel might have a bit more meat in their remit, but most of the time lawyers provide the advice and let clients decide. That’s part of the duty to the court.

This leaves the on-ground activity to others.

Executive management is a different ballgame, so it’s interesting to see a rise of lawyers taking on big roles.

The skills former lawyers bring to management are unique. Naturally there’s the analytical and reasoning skills. There’s also  engagement with clients, critical thinking, understanding of legal structures and pathways as well as the project management skills that only come with a big file having a tight turnaround.

When thinking about the prospects of lawyers it’s impossible to ignore the challenges facing new law graduates. Of course, the law degree is designed for those who want to be lawyers, but there is applicability beyond the law.

Plenty of law graduates have gone on to become successful journalists, management consultants and investment bankers. But the case of CEOs having law backgrounds, especially having practiced, is still rare.

Lawyers then should take heart that those who fly the coop can thrive.

 

Conrad Liveris is a corporate adviser on workplaces and risk.

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