India Inc. is increasingly seeking legal expertise, drawing seasoned professionals from top-tier law firms to fortify their in-house legal teams. This strategic move reflects a growing awareness of the intricate regulatory landscape and escalating business risks that demand adept handling. Companies are no longer solely focused on legal compliance; they now recognize the importance of integrating legal knowledge with strategic decision-making, risk mitigation, and overall business operations.
This shift in corporate strategy is evident in recent high-profile appointments. For instance, Vishwanath Pratap Singh transitioned from Cyril Amarchand Mangaldas (CAM) to Bharti Enterprises as the head of corporate legal last month. Similarly, ArcelorMittal India appointed Heena Singh, formerly with TT&A, to lead its legal team in February. These transitions exemplify a deliberate effort to bring in experienced legal minds from established law firms.
According to Karl Fernandes, a senior partner and head of the corporate practice group at Vahura, a leading executive search and consulting firm, experience in tier-1 law firms is highly valued for leadership roles, as it signifies technical depth, rigor, and pedigree. Fernandes also noted that many Indian corporations and multinational companies actively seek partners or senior counsel from firms like AZB & Partners, Khaitan & Co, Trilegal, Shardul Amarchand Mangaldas (SAM & Co), and Cyril Amarchand Mangaldas (CAM).
Several factors contribute to this growing trend. One significant driver is the increasing volume of mergers and acquisitions (M&A) activities. As companies engage in more local and cross-border deals, they require specialized legal expertise to navigate the complexities of these transactions. Strengthening in-house legal teams with M&A specialists enables companies to reduce their reliance on external counsel and enhance transaction efficiency.
Another factor is the increasing focus on compliance with evolving data protection regulations. The impending finalization of the Digital Personal Data Protection Act (DPDP Act) has prompted companies to closely examine their data protection policies and hiring practices. HR professionals are collaborating with corporate lawyers to address challenges in managing employee data and ensure compliance with the new regulations.
Furthermore, cost-effectiveness is a motivating factor for building in-house legal expertise. While companies will continue to seek advice from law firms, having an in-house team bolsters legal support, particularly when compliance is paramount. This internal team provides a watertight legal framework, ensuring that the company adheres to all applicable laws and regulations.
The demand for legal professionals is also reflected in the compensation packages offered. Annual packages for mid-to-senior-level talent (10-15 years of experience) with expertise in M&A, debt financing, and joint ventures range from ₹1 to ₹2 crore. General counsels or chief legal officers in large companies and conglomerates can earn between ₹3 and ₹5 crore annually.
However, the shift towards in-house legal teams has also created a lateral hiring frenzy within the legal sector. Law firms are experiencing an exodus of talent as companies and boutique firms aggressively poach senior partners and their teams. This competition for talent has led to increased compensation and better designations, further fueling the reshuffling of the legal elite.
In conclusion, India Inc.'s move to tap into the expertise of law firm professionals highlights the growing importance of legal knowledge in today's complex business environment. Companies are seeking experienced lawyers to lead their in-house legal teams and provide strategic guidance on regulatory matters, risk management, and business operations. This trend is expected to continue as businesses navigate an increasingly intricate legal landscape.
