From Fortune · Ruth Umoh · · 1m 50s
How a star partner's exit toppled a 95-year law firm
Weil, Gotshal & Manges collapsed after Michael Aiello left for a rival, exposing the danger of concentrating power in a few hands.
In brief
Weil, Gotshal & Manges collapsed after Michael Aiello left for a rival, exposing the danger of concentrating power in a few hands. Weil, Gotshal & Manges announced plans to wind down after the departure of its highest-paid partner triggered a wave of resignations, illustrating the risk of building businesses around…
A 95-year-old giant collapses
Weil, Gotshal & Manges announced plans to wind down last week. The firm had roughly 1,200 lawyers, more than two billion dollars in annual revenue, and major corporate clients.
One partner's departure triggered the collapse
Michael Aiello, the firm's highest-paid partner and leading dealmaker, reportedly earned more than twenty million dollars annually. He oversaw a corporate practice of more than 600 people.
Aiello's move to Cravath sparked defections
When Aiello left for rival Cravath in September, taking five partners with him, the departures helped unleash a broader wave of defections that ultimately pushed the firm toward dissolution.
The vulnerability of star-dependent businesses
Weil's predicament illustrates the vulnerability of businesses built around individuals whose commercial value gives them extraordinary leverage. Star performers attract clients, generate revenue, and recruit talented people.
The risk spreads across industries
The same risk exists at investment banks where rainmakers control client relationships, at consulting firms where senior partners bring in business, and at technology companies where founders become synonymous with success.
How leaders can protect their organisations
For leaders at every level, the challenge is capturing the benefits of exceptional talent while ensuring teams can withstand losing it. This means expanding client relationships across teams and distributing decision-making authority.
The career lesson for ambitious professionals
For ambitious professionals, the episode raises a question: how much of one's career value depends on the continued success or support of one influential leader?The lesson is to build two kinds of career capital simultaneously.
The essence
Weil, Gotshal & Manges announced plans to wind down after the departure of its highest-paid partner triggered a wave of resignations, illustrating the risk of building businesses around star talent.
