Do such hirings make any business sense for firms? If not, why do firms hire so many retirees? I assume not many of them can actually bring in too many clients as such.
How actively do such people advise clients as compared to a regular partner at the firm?
Is it just me or does CAM end up hiring such people much more than other law firms.
These hirings are for strategic purposes. Getting a huge loan for your client from SBI becomes much less cumbersome when SBI's former MD is on your team. Similarly, having retired government babus as advisors will help to get quicker clearances from the government from your clients. Basically, the bank/government official who is currently at the top will be the junior of the retired official who is currently your senior advisor, and that senior advisor can simply pick up the phone and call his junior to nudge him to get the work done.
Among the corporates, Reliance follows a similar strategy. IIRC, it brought Arundhati Bhattacharya on its Board after her retiredment from SBI, back when Reliance was trying to finance its expansion through debt.
Imo hiring these people does not make sense for business as such and yes a lot many such hires do seem to be at CAM.But I think these hires by CAM are for their connections to important people,that's the only reason I can think of.
Well, except for the retired SEBI Chairman whom they appointed a few years back, CAM has largely appointed powerless people who will be happy to service in advisory committees. In the government it is largely IAS officers who rule. No top level officer like the revenue secretary and finance secretary will ever join a law firm. People who have cleared bank probationary exam and rbi exam and go on to lead their originations report to IAS officers in North Block. PSU Bank chairman is also a toothless position as he/she has to consult and take orders from top IAS officers in the power corridors in North Block. Top officers i.e secretary level officers will never join Cyril Shroff. Law firm partners may think that SEBI chairman is a big deal but in the IAS it is only an additional secretary level post and not secretary level post. There were many officers in Mr. Sinha's batch who went on to hold far more powerful positions like the principal secretary to the prime minister who will arguably be one of the most powerful men in India.
The top IAS officers post retirement are holding positions like:
(i) Shaktikanta Das- RBI Governor (ii) Amitabh Kant- CEO, Niti Aayog who was also former DIPP Secy (iii) PK Mishra: Principal Secy to the honorable PM in the PMO in South Block (iv) Atanu Chakraborty: HDFC Chairman (he was former DEA secy)
So, retired secy level officers will aspire for officers like chief election commissioner and RBI Governor. Pls don't tell that law firm partners have more clout than these positions. Why would they join firms if they can get appointed to the most important offices.
That's not quite right. There's no fixed pay scale for this sort of position, obviously, but I can assure they are well remunerated, usually on par with a PA or a junior Partner. They don't get a bonus, but are free to pursue other streams of income.
Totally depends on their role/stature and level of involvement. Usually it's in the low salaried partner range for people of consequence and with limited working hour commitments.
The observation that CAM ends up hiring such people much more than other law firms is right,but I don't get why CAM prefers the retired officials over lawyers.Too many "strategic" or "regulatory" appointments tend to raise questions on the firm.
Word on the street,can't really say whether true or not, is some of these are post retirement jobs in return for the pre retirement favours received.These tend to be "strategic" appointments.
If you are bringing in so many retired regulator guys,the partner exits must havs really dented CAMs numbers,both on the people/team count and revenues.
When you bring guys from the regulators it can become very difficult on the team They are used to being in authority, bureaucracy,relaxed pace of response s and need a whole lot of pampering and "yes sir""yes sir",much more than the usual dose required by partners.And forever there is a sword hanging that any mistakes will get you reported by these guy to the top boss.
Associate Attrition, Partner exits to "smaller " firms.Bo effect.This move to hire bench of retirees from regulators will help some,but not much .If CAM doesn't pick up the concept of " talent" now,very soon the client exodus will start.
CAM is just bleeding talen right now,,many including partners are leaving to other firms.So they are hiring a"bench" of retirees just to put on some face of stability.There is no great value add that the regulator retirees bring in terms of compliances and getting clients or executing business deals,partners and associate tend to better on that side.As someone commented,the regulator retirees are helpful on the lobbying parts.
Do such hirings make any business sense for firms? If not, why do firms hire so many retirees? I assume not many of them can actually bring in too many clients as such.
How actively do such people advise clients as compared to a regular partner at the firm?
Is it just me or does CAM end up hiring such people much more than other law firms.
Among the corporates, Reliance follows a similar strategy. IIRC, it brought Arundhati Bhattacharya on its Board after her retiredment from SBI, back when Reliance was trying to finance its expansion through debt.
(i) Shaktikanta Das- RBI Governor
(ii) Amitabh Kant- CEO, Niti Aayog who was also former DIPP Secy
(iii) PK Mishra: Principal Secy to the honorable PM in the PMO in South Block
(iv) Atanu Chakraborty: HDFC Chairman (he was former DEA secy)
So, retired secy level officers will aspire for officers like chief election commissioner and RBI Governor. Pls don't tell that law firm partners have more clout than these positions. Why would they join firms if they can get appointed to the most important offices.