Simon Davies Leaves Linklaters To Join Lloyds Banking Group… And Is Conducting A Review Of Their Legal Function?

Dec 20, 2016

Written By Sofia Gymer, Editor, AllAboutLaw.co.uk

On the 1 July 2015 Simon Davies, Managing Partner at Linklaters (a ‘Magic Circle’ firm) gave the surprise announcement that he would be leaving the firm to join Lloyds Banking Group as chief people, legal and strategy officer.

Optimistic, Lloyds chief executive António Horta-Osório said: 'This will be a key role for the group and with his extensive experience of managing and leading a major global business, I have no doubt Simon will prove to be an invaluable addition to the group and to our senior team.'

Coinciding with Davies announcement, Linklaters released its financial results for this year, which showed a 1% rise in the firm’s revenue to £1.27bn. Undoubtedly, he leaves on a positive note.

Davies became Linklaters youngest ever Managing Partner at age 40 in January 2008. To many the news came as a shock, especially as he is stepping down over a year early from his role as MP, but sources close to him said it was ‘obvious’ he would not run for a third term.

Davies said: 'I have thoroughly enjoyed my 25 years at Linklaters. It's a fantastic firm that I will be leaving with real sadness but as my second term as firm-wide managing partner draws to a close, I feel the time is right for me to accept a new challenge and take on a senior executive leadership role with an outstanding business. The role involves leading in areas I have experience and expertise in - people, legal and strategy, but in a different industry which is very exciting.'

Since then, rumours have begun to circulate that he has been given a mandate to review Lloyds Bank’s legal function. This will potentially begin even before his official start date, in January 2016.

This is following a conference call between legal staff held by Kate Cheetham, who succeeded Andrew Whittaker as general council of Lloyds on the 22 April 2015. This revealed that Davies has potentially been authorised to review not only the general legal function, but also the departments strategy and HR role.

Image courteys of Moneybright.

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