AI, CTE Research: Two Tough New Tests for Scott Barshay's Leadership at Paul, Weiss

One of the most closely watched succession dramas keeps adding new chapters. That's at elite law firm Paul, Weiss. 

In early February of this year Decider Group member Scott Barshay took over the chairmanship. After 18 years in that role, Brad Karp stepped down.

Even under normal circumstances it would have been challenging for Barshay to establish his leadership. Karp was iconic. Also, by many, much loved. 

But the process was abrupt. In addition, Barshay is a very different player than Karp had been. And, of course, the organization was in chaos after the dealmaking with the Trump administration, Epstein files disclosures and flight of star litigation partners.

After a string of wins ranging from poaching big names to wow financial performance, Barshay has just been hit with two new tests. The question intensifies: Can Barshay be the leader Paul, Weiss requires at this time? In time? The law-firm sector is in existential turbulence. 

Here's what has come down. 

In partner flight Paul, Weiss has another loss. It's in the critical moving part of  AI. Co-chair of the firm's AI group Jonathan Ashtor has joined Gibson Dunn. There Ashtor will be co-chair of the New York's technology transactions practice. How firms approach AI has become the number-one mode of differentiation. That includes dealmaking. Sector powerhouse Kirkland & Ellis is out there in front in a monster way. It developed an AI proprietary platform.

The second development is the CTE research. That has changed the science about this degenerative brain disease in football. The shift is from causality rooted in isolated concussions to repetitive impacts. New litigation is possible. Public relations fallout has already been started. The NFL has been a long-term Paul, Weiss client. Recently the firm established a dedicated sports practice. 

Several scary scenarios are possible.

NFL asks Paul. Weiss' help on this one. Obviously, the firm could be caught up in the controversial mess of litigation, media hysteria, congressional scrutiny, regulatory revisits and attempts to re-do parts of the landmark 2015 settlement orchestrated by Brad Karp.

Identification with toxic client. This could unfold as "Another Exxon." On its website the firm boasts its representation of the NFL. Protestors could be in front of the building. Recruiting talent becomes difficult. 

Peril of being branded one-dimensionally. It is possible that a single issue could balloon large enough to override any other identity. Both of the firm and of the quality of leadership. It was one issue which did in Bud Light. 

In coaching, I hammer the importance of what you do in the now. Capitalism has a short memory. It focuses on today's wins. Previous ones essentially are irrelevant. How will Barshay navigate these two developments? 

Careers. Forget all that. It’s about earning a good living, no matter what.

Complimentary consultation with Jane Genova, StreetSmart Coaching (janegenova374@gmail.com)


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