Commercial side job commonplace for professors of corporate law

Many professors of corporate law also work for law or consultancy firms – more often than their colleagues in tax law. Firms are keen to hire professors, as they ‘sell expertise’.

This past April it turned out that professors of tax law often wear two hats. Fifty percent held a commercial side job, mostly at one of the consultancy firms on the Amsterdam Zuidas.

But professors specialising in financial and corporate law even more frequently hold an additional position, according to a new count by Leiden University. In this field, 67 percent have a commercial side job. Including public roles – such as in the judiciary or public administration – that figure rises to 75 percent.

Unhealthy

“With so many side jobs, the field is dominated by people with commercial interests”, says Leiden researcher and professor of tax law Jan Vleggeert. “Whether consciously or unconsciously, the interests of companies or clients may influence what should really be independent science. So many side jobs in one discipline doesn’t seem healthy to me.”

Two professors of corporate law, both with side jobs, agreed to comment anonymously on the Leiden research. They say they have no trouble separating their various roles and interests. “If I feel I can’t approach a subject freely, I don’t take it on.”

Anne Lafarre, professor of corporate law in Tilburg, is one of the few without a side job. Even so, she sees no issue with the many side jobs her colleagues hold. “It’s quite a practical field, so students learn a lot from their real-world experience. I do too.”

Corporate law

Vleggeert counted the side jobs of 57 professors. This group of academics specialises in the legal aspects of banking, business operations and financial supervision. Their research also covers topics such as mergers, international money flows and money laundering.

Of the 57, 38 have a commercial side job, at firms such as Stibbe, Loyens & Loeff, De Brauw Blackstone Westbroek, Baker McKenzie and Clifford Chance. But Schiphol, Rabobank and Philips also pay professors for their services, as do several law firms specialising in financial markets.

Not all professors are fully transparent about their additional positions, Vleggeert notes. Four of the 57 do not mention their side jobs on their university profile. According to the academic code of conduct, researchers must be open about such roles to prevent potential conflicts of interest from being hidden.

Two of the four say their side job used to be listed, but was removed due to an administrative error. A third says they reported the role years ago, but did not check whether it appeared in the public register of side jobs.

Concerns about influence

In August, the Rathenau Institute found that a growing number of citizens are concerned about the influence of funders on academic research.

The same concern exists among senators and MPs. They have repeatedly asked the Minister of Education, Culture and Science whether there should be a cap on the number of side jobs professors are allowed to hold. Then-minister Eppo Bruins didn’t think so – he said universities themselves should ensure a ‘healthy balance’.

Elections

Several parties have included measures in their election manifestos to counter what the VVD calls ‘covert influence’ in academia. The party wants research funders to be made public. The SP proposes setting up an independent fund through which companies can contribute to research ‘without any say over its execution or outcome’.

The Party for the Animals wants universities to improve their side job registration systems. And NSC explicitly mentions professors working for tax advisory firms. The party wants ‘clear boundaries to prevent conflicts of interest’.

Firms sell expertise

It seems the number of commercial side jobs in tax law and corporate law is higher than in other fields. Researcher Jan Vleggeert estimates the national average at around thirty percent. According to the umbrella organisation of universities, about seventy percent of professors are employed full-time, which would mean a maximum of thirty percent work part-time and could therefore have a side job, Vleggeert reasons. It’s only an estimate, he says, but no better figures are currently available.

Either way, corporate law stands out with its 75 percent (including public roles). Does this undermine academic independence? Tilburg professor Lafarre, who does not hold any side jobs herself, believes her colleagues handle any potential conflicts of interest with care.

Career

She also mentions that in some cases, PhD graduates with jobs at law firms are promoted more quickly to professorships. “But that’s often justified, precisely because of their practical and in-depth knowledge, and their engagement in public debate.”

And then there are the cuts to academic funding, Lafarre adds. Companies often sponsor professorships, and as long as there are independent appointment procedures and transparency about the sponsorship, she believes this can work well. “By funding a chair, these practitioners can contribute a great deal to the academic world.”

This benefits not only universities, but also the sponsoring firms, explains one professor with a side job. To avoid hassle at either the firm or the university, he prefers to remain anonymous. “At law firms, we sell knowledge. We sell the idea that we’re good at something. And no one embodies that better than a professor.”