Sidley Austin LLP - The Inside View

Few firms can say they played a role in the matchmaking of a presidential couple. Chicago-born Sidley Austin can. But being Barack and Michelle Obama’s meeting ground is hardly the most impressive notch on the firm’s belt. “I was impressed by the firm’s reputation, not only in Chicago, but across the world,” one source awed, adding: “I was looking for a firm where I’d be exposed to a wide breadth of knowledge.” And a wide breadth of knowledge Sidley certainly has. The firm picks up an impressive 123 Chambers USA rankings (an additional ten from 2022) most notably in Illinois for its banking & finance, corporate/M&A & private equity, healthcare, insurance, intellectual property, and litigation offerings; in New York for its corporate/M&A expertise; and in DC for its environment and healthcare know-how. And as if that wasn’t enough, Sidley boasts further nationwide accolades for its appellate, capital markets, financial services regulation, hedge funds, international trade, life sciences, and transportation practices. On the world stage, the firm is awarded a further 92 Chambers Global rankings and is recognized as a global market leader in agribusiness, and international trade/WTO.

But despite its global success, for our interviewees Sidley’s a firm that “hits the sweet spot of size.” Sources explained this meant matters “as sophisticated as they can get,” coupled with “teams that are lean, with one or two associates, a partner, and a mid-level.” Perhaps matchmaking does come naturally to the firm.

In the firm’s 11 office network across the US, you’ll find the majority of juniors at the firm’s New York office, followed by Chicago and DC. The Dallas and Houston offices also take on a sizeable number of newbies. Sidley has a further ten international offices across Asia Pacific and Europe, in cities like Singapore, Sydney, London, and Munich.

Strategy & Future

Last year, New York, Boston, Texas, and California were highlighted as areas of growth for the firm; this year, Sidley’s adding Miami to the list. The firm opened up shop there in 2022, tapping into the local blockchain/crypto, healthcare, financial services, M&A & private equity, real estate, sports/entertainment, and technology expertise. To bolster its M&A & private equity offering in Miami, the firm hired two seasoned partners, Juan Delgado from Morrison Foerster, and Gabriel Valdes from McDermott - just two of 26 lateral partners brought on across the firm's US offices in 2022. Alongside the opening of the new digs, Sidley announced the ‘Sidley Austin LLP Endowed Scholarship’ at the University of Miami School of Law.

The Work

The juniors on our list were spread across a wide range of practice areas, ranging from litigation, to M&A & private equity, to energy, transportation & infrastructure. The firm’s litigation practice takes on the largest number of newbies, followed by M&A & private equity, and global finance. Work assignment varies slightly from group to group, though most of our interviewees reported a hybrid system of free market assignment coupled with “a survey that goes out every two weeks where you can report your availability to a staffing group who ensure you’re getting work, and you’re getting a diversity of work too.” Interviewees also noted: “Assigning partners are a good buffer for when partners reach out to you, so there’s no pressure if you have to say no!”

“…major mergers over the last five years which have included the DOJ and the FTC.”

Sidley’s litigation practice really “covers the gamut.” As well as tackling general commercial litigation work, juniors who sit here also have the opportunity to specialize across various subgroups, including antitrust, white collar, healthcare, securities, and IP (to name just a few). It’s this breadth that drew many of our sources in: “One of the benefits of working at Sidley is that we have clients from all over. I’ve never felt like we have one type of client that pops up more than others.” On the antitrust side of the practice, associates spoke of “major mergers over the last five years which have included the DOJ and the FTC. That type of work has been big for the practice; as the economy has slowed down, a lot of associates have been kept busy with that.” Newbies can also get involved in deal due diligence advisory work, where, again, “you’re dealing with just about any industry.”

Juniors’ roles across different teams vary greatly. “On larger litigation matters where I’m a more junior person, I’ll be in charge of managing productions, first cuts of drafting, legal research, and managing communications within the team, and with the opposing counsel,” one interviewee detailed. “It’s also common for it to just be me and a partner on a case. It can be a little intimidating at times, but you can always go back to the partner and say ‘Help!’,” they added.

Litigation clients: Citigroup, Mastercard, Huawei. Defended Arena Pharmaceuticals against a putative consumer class action alleging the marketing of prescription weight-loss drug Belviq violated aspects of the New York General Business Law.

“…historical strengths in highly-regulated industries, like life sciences, transactions and insurance.”

Over in the M&A & private equity group, juniors spend time across strategic M&A, private equity, capital markets, disclosure, and governance work. There are also more specialized teams, like executive compensation & benefits, and IP tech transactions. Clients here range from those in the financial services industry, to consumer retail and manufacturing companies. “There’s really a wide focus,” one Chicago-based interviewee noted. Another source in New York was keen to highlight: “Our New York M&A & private equity group is one of the top on the street. We handle the fun and sexy billion-plus dollar deals,” while also noting the firm’s “historical strengths in highly regulated industries, like life sciences, transactions and insurance.”

When staffed on deals, “generally speaking you get lots of opportunities to dig into the material documents of the transaction. Outside of those documents, I’m regularly speaking with clients and my counterparts on the opposing counsel and getting exposure to working with management and investment teams,” an interviewee detailed.

M&A & private equity clients: Hasbro, The New York Times Company, Walgreens. Represented Clearlake Capital Group in its $3.1 billion acquisition of Chelsea Football Club.

Broadly speaking, our global finance interviewees explained the group was split into two buckets: securitization and lending. “Both sides are very robust and busy,” a source added. Our sources had tackled leveraged finance, securitizations, broader structured finance deals, and everything in between. On the securitization side, the group often represents underwriters on asset-backed securitizations like CMBS (commercial mortgage-backed securities) and RMBS (residential mortgage-backed securities). On leveraged finance matters, “we do a lot of leveraged buyouts in the private credit space,” a source noted. In terms of levels of responsibility, juniors explained, “Our deals are leanly staffed in a good way! Of course, you’ll have to do all the necessary deal work like drafting and reviewing documents, but there’s a pretty high benchmark among juniors so you’re doing substantive work early on.”

Global finance clients: BofA Securities, Goldman Sachs, Wells Fargo Securities. Represented the underwriters of a syndicate of banks, including Barclays, TD, and BofA, on the securitization of retail motorcycle loan contracts in connection with Harley-Davidson.

Hours & Compensation

Billable hours: 2,000 target

The firm’s 2,000-hour billing target includes 1,800 hours of client-chargeable work, which must be hit in order to unlock the market bonus. The remaining 200 hours can be made up of things like pro bono, development training (Built to Lead program), DE&I work, observational training, and knowledge management.

With recent economic downturn, an associate explained, “Bonuses are harder to come by these days.” This sentiment was generally shared among the cohort, with another adding, “Last year, I had a six-month busy stretch where I was easily clearing 50 billables a week, but now it’s slower I’m billing around half of that. It’s just the nature of the profession,” they reasoned.

Pro Bono

Associates can count up to 200 hours of pro bono work towards their billable target, though sources described “some flexibility around the parameters of that,” with additional hours granted on a case-by-case basis.“Almost everyone hits the 200-hour pro bono mark,” a source explained of the firm’s dedication to pro bono matters. “It’s my understanding that almost everyone is working on at least one pro bono matter at any given time.” The firm has designated pro bono attorneys who frequently circulate new opportunities for associates to get involved in. These often include transgender rights, death penalty, immigration, housing rights, and first amendment cases, as well as assisting small businesses on corporate governance matters.

Pro bono hours

• For all US attorneys: 140,548
• Average per US attorney: 76.2

Career Development

“We do have a formalized training program that goes on every so often,” an associate explained. “Just last week, we had a writing program, and there are series on different topics from antitrust to drafting motions.” Litigation associates are also able to attend a “litigation academy. It’s like moot court but for work!” Over on the corporate side, newbies have “a very structured training program for the first six or so months.” In New York in particular, the M&A & private equity group hosts “regular lunch and learns where people present on new concepts in the law.” More informally, “partners also host informal training sessions where they mark up agreements in real time with explanations. It’s like fast track on the job training because you’re talking to an expert in the field and learning how they’d approach the problem!”

In terms of mentorship, newbies are assigned a partner mentor and a more senior associate mentor. Moreover, the firm recently introduced the Built to Lead program for fourth to eighth year associates. “Once you become a managing associate, the firm sends you on a week-long executive MBA type course, and you’re taught managerial skills,” a source explained. “I’m really looking forward to it!”

Diversity, Equity & Inclusion

“Something that attracted me to Sidley and to my group in particular is that we have an almost even split of women and men partners,” a global finance associate explained, adding: “Firmwide, there’s a lot of attention dedicated towards supporting diverse attorneys and women. For example, when we shifted to a hybrid working environment, meetings were available to women who are mothers to discuss how the model might impact them differently.” What’s more, “last year the firm appointed Yvette Ostolaza as management committee chair, and the managing partner of our DC office is a woman. It’s a great move to have women in visible leadership roles,” a source praised. The firm's Boston, Dallas, San Francisco, and Miami offices also have women managing partners.

“Partners who are the mainstays at the firm are able to juggle life and law.”

Moreover, the firm hosts retreats for the different affinity groups. “In February, the firm held a Black lawyers retreat in Century City, and in March there was the Latin lawyers retreat in Dallas,” an associate detailed. And to support involvement in DE&I initiatives, billable credit is available.

Culture

“People at Sidley take on an extra level of professionalism. I’ve not come across any yellers, or people who have been difficult when you’ve made a typo or if the clients being a little fussy,” one associate shared, attributing this to the firm’s Midwestern roots. “It makes me feel good about where I work because that’s part of what I want to bring to the table.” In the spirit of leading by example, “partners who are the mainstays at the firm are able to juggle life and law; it’s great for us to see and aspire to do the same,” a hopeful source shared.

"The associates were given a budget to plan something while they were away – a reward for holding down the fort!”

And when the cat’s away: “The partners recently had a retreat and the associates were given a budget to plan something while they were away – a reward for holding down the fort!” The firm also has an associate relations committee who schedule happy hours and events. “We recently went to Topgolf!” one DC source enthused, while sources in New York spoke fondly of a weekend trip to see a Yankees game.

Get Hired

The first stage: recruitment on and off campus 

OCI applicants interviewed: 2,836 

Sidley interviews at more than 30 law schools and 15 job fairs across the US. Each office decides on which schools it will interview at and how many students it will aim to see. 

A mix of partners and associates conduct the OCIs. “We try to engage alumni of the law school where we are doing interviews,” says Jennifer Connelly, Sidley’s national legal recruiting director, “as we feel that fosters a natural connection with the students.” Interviewers use behavioral based questions, which, according to Connelly “allows us to best understand past decisions and how those decisions can help gauge future performances.” Interviewers also want to see candidates demonstrate their leadership skills. 

Top tips for this stage: 

“Come prepared to talk about anything listed on your resume and be thoughtful regarding questions about the firms in which you are interviewing.” – Jennifer Connelly, recruiting director 

Callbacks 

Applicants invited to second stage interview: 1,177 

Callbacks also vary office to office, but candidates typically spend two to three hours in one-on-one interviews with partners and associates. In some instances, there may also be a lunch or dinner with some junior associates. Behavioral questions are still on the table at this point, but interviewers will likely want more detail on candidates’ practice area interests. Connelly says that at this stage “we’re looking for candidates who stand out – those who are able to best articulate their interest in the firm, while also demonstrating that they bring exceptional experiences and skills to their practice areas of interest.” 

Top tips for this stage: 

“Reach out to the lawyers you met at OCI or to Legal Recruiting with any follow up questions you have about your visit.” – Connelly 

Summer program 

Offers: 741

Acceptances: 330 

Sidley summers are encouraged to get experience in different practice groups – again, the program varies from office to office. Connelly advises associates to “use every opportunity during the summer to meet as many lawyers and learn as much about the firm and the practice as possible.” There’s a centralized assignment system but summers can also take work directly from lawyers. At the end of the program, associates’ assignment to a particular practice group will vary – you guessed it – by office. 

Top tips for this stage: 

“It’s always a lot of fun, but it’s good to make sure all the summers know that they don't have to attend every single event.” – a second-year junior associate 

“Work on projects that interest you the most, but also take a chance to do something in a practice area that is unfamiliar to you.” – Connelly

Interview with Mike Schmidtberger, partner and chair of the executive committee, and Yvette Ostolaza, partner and chair of the management committee

Chambers Associate: How would you define your firm’s current position and identity in the legal market? 

Sidley is a global $3 billion elite firm with 21 offices in four continents. We are well-poised to capture opportunities arising from disruption, including the current global economic uncertainty. With 2,300 lawyers, 13 global practice groups, we have weathered major economic, political, and social turmoil for the past 157 years. Even still, we continue to prove that we are built to keep winning.  

We prioritize relationships, both interpersonal and between organizations. One of our strengths is our capacity to forge enduring relationships with the business community while remaining attuned to the dynamic legal landscape. In 2022, we regularly represented 72 of the Fortune 100. 

Sidley continues to maintain our decade-long streak of year-over-year revenue growth – a testament to the stellar work of our lawyers and the strategic fiscal management of our leadership. In 2022, the firm generated $2.923 billion in revenue, the most in our history and a 4.6% increase from 2021. We are confident in 2023’s progression.  

CA: What are your core practice areas and sector priorities?  

Demand for our core practices – private equity, litigation, life sciences, healthcare, restructuring, energy, investment funds, and regulatory and enforcement remained robust in 2022 and has continued into 2023. The widely recognized Regulatory and Enforcement practice has seen double-digit revenue growth for a third straight year. These lawyers serve as trusted advisors to our clients in their most significant matters involving public companies, financial services firms, and private fund managers.  

We offer a number of specialized industry groups ranging from aviation and airlines to music and entertainment and to sports and media to better address narrow client issues. 

Many of our core practices are Chambers-ranked with a total of 123 Chambers USA ranked practices with 19 of those ranked as Band 1. 

CA: Have there been any developments at the firm over the past year that you would like our readers to know about?  

Built to Lead 

In 2022, we launched the associate development program, Built to Lead. This new leadership and executive development model prepares associates to become world-class, business-savvy lawyers by deepening business acumen and literacy, bolstering executive presence and other boardroom skills. The Built to Lead program is a direct response to our associates’ desire for development and leadership opportunities and is a key addition to our comprehensive approach to development and well-being. We are committed to empowering our associates to become the best possible version of their professional selves over the long term.  

Miami Office 

We announced the opening of an office in Miami in July 2022. Since then, this new office has grown to include more than 50 lawyers and staff and has served nearly 500 clients in over 1,000 matters. The Miami office serves a wide variety of practice areas including private equity, crypto, real estate, insurance, healthcare, finance, litigation, antitrust, regulatory, investigations, tax, Latam, and sports/entertainment. Upon completion of an ambitious construction plan, we will move into our new home at 830 Brickell, strategically located in Miami’s Brickell Financial District. 

New Practice Group – Regulatory Litigation  

In the Spring of 2023, we launched a new practice group dedicated to regulatory litigation. Based in Washington, D.C., our Regulatory Litigation group stands at the intersection of law and policy. We represent clients in challenges to agency rulemaking, agency-facing civil disputes, and private litigation in highly regulated industries. 

New Partner Class 

Effective January 1, 2023, we elected our largest partner class ever: 44 partners and 16 counsel were elected across offices in Asia Pacific, Europe, and the U.S. 

CA: Are there any domestic or international events/trends (legal, economic, political, social) affecting the work conducted by the firm or the way in which it is structured and run?  

We are a global law firm with 21 offices across the world situated in major business hubs. Accordingly, we are constantly monitoring the domestic and foreign economic landscapes. Because of this consistency, we are prepared to help clients navigate any form of disruption. For example, the recent instability in financial institutions is top of mind for many clients.  

The firm also navigates the complex web of international and economic sanctions, including those resulting from the ongoing war in Ukraine. We help clients understand and navigate the dynamic, quickly shifting rules governing trade with sanctioned countries and their nationals. In the U.S., we are actively monitoring real-time federal developments related to the Inflation Reduction Act (IRA). Our lawyers are constantly reevaluating the changing environment as a result of federal actions.  

The firm also, and relatedly, has a specialized shareholder activism practice ready to address the challenges companies are facing during this transitional economy. 

Globally, given the breadth and depth of our 13 practice groups, we are well equipped to navigate the spectrum of regulatory issues facing our clients around the world. 

CA: What is your firm's strategy and how do you expect the next year to unfold?  

We’re increasing our market footprint and right now, we are a top six firm in revenue and expect to continue to grow. 

The firm is focused on performing complex, high-stakes and/or multidisciplinary work, including international dimensions, for clients who value relationships grounded in excellence and service. This includes a lineup of services dedicated to those substantive areas, industries, and markets where the firm can successfully leverage its capabilities in competing for and obtaining such work. We differentiate ourselves in the eyes of our lawyers and recruits with an extraordinary culture, based on a commitment to shared goals, mutual respect and support, and high performance. Our commitment to, and success in, diversity and inclusion gives us the opportunity to engage in complex, intellectually stimulating legal services through the investment in the success of the next generation of Sidley lawyers. 

We are driven to increase our profitability and revenue. Only a handful of firms have hit $3 billion in revenue, like we will this year. That financial strength creates the kind of stability for hiring top talent and making sure our clients are serviced at the highest level. We are investing in high-demand practice areas, including bankruptcy, health care and life sciences, private equity, and high stakes litigation and investigations. In 2022, we saw more clients turning to us for bet-the-company litigation and regulatory advice. We already see an increase in regulatory disputes and have 56 trials on the 2023 calendar.  

CA: How is the firm evolving to accommodate the needs/expectations of the next generation of lawyers? 

We know that associates are looking for more than just competitive compensation. They want leadership and growth opportunities. It’s difficult to replicate the power of mentorship and training in a remote environment – previously, so much of this came through observation from being in the office or going to a courtroom.  

The Built to Lead program, mentioned above, consists of MBA-level courses at top global business schools, Northwestern and Columbia, executive leadership academies, group service projects, and personal business-development coaches. We’re making sure that our associates know Sidley is investing in them as a whole person and has high expectations of their continued professional development at every level of seniority.   

CA: How has the role of the lawyer changed over the last two decades and what new skills are required for the next generation of lawyers to succeed?   

The roll-out of our Built to Lead program also recognizes that our clients are facing increasingly difficult environments. By creating a strong foundation that includes a talent incubator and a career launch-pad, we are not just looking at the beginning of an associate’s career, but working with mid-level and senior associates to develop the skills and experiences clients find most valuable. Clients expect younger lawyers to be skilled and add value right away; the training we are providing helps them meet those expectations earlier in their careers. 

We also recognize that both our lawyers and the communities around us expect civic engagement. As part of the Built to Lead program, sixth-year associates participate in the Civic Leadership Academy. The Academy curriculum emphasizes the importance of civic leadership in both their own development and the development of business relationships. Attendees learn about the value of civic leadership, how to turn their interests into action, and opportunities available through involvement in non-profit board and trustee services. 

CA: What is the greatest challenge facing the firm in the next decade? How about the legal market more generally?  

Generative AI offers challenges and opportunities for all of our lawyers, especially the next generation of leaders. We believe that our younger lawyers familiarity with emerging technology, coupled with our immense database of knowledge and experience with the most sophisticated matters, may offer an opportunity to provide greater value to clients. Our lawyers are embracing learning and putting themselves in a better position to use AI and deliver high-value advice to our clients and become business savvy boardroom lawyers. 

CA: How has the rise in legal technology affected the firm? Are you implementing any specific programs/initiatives with regards to technology? 

Our program is comprised of multiple components: 

a) Award winning digital learning initiative which ensures that all firm members are well trained and leverage our capabilities  

b) Advanced technical capabilities such as machine learning and artificial intelligence in our technology stack to benefit from them in our client work as well as for the management of the firm 

c) Robust data management and analytics program 

d) Knowledge Management program that benefits from best available search technologies 

e) World class information security solutions and information governance  

f) Modernized core systems  

CA: What is the firm’s approach to bolstering diversity, equity, and inclusion? Are there any initiatives that are new or that have been working particularly well that you would like to flag? 

Creating a genuinely diverse and inclusive firm is integral to Sidley’s long-term business health and growth, to the quality of legal services that we provide, and to otherwise enhance our culture and workplace environment. Sidley continues to be an industry leader in the Diversity, Equity, and Inclusion (DE&I) space. Firmwide, 52% of our committee chairs are women and 30% of our practice area team leaders are women. Among U.S. associates, 50% are women and 34% are racially/ethnically diverse. Among U.S. partners, 30% are women and 13% are racially/ethnically diverse. 3 of our 8 management committee members are women. Of the 26 office managing partners, 9 are women (firmwide), 17 are men (firmwide), and 9 are diverse (U.S. only).  

We know that good leaders transcend gender, ethnicity, and race. Our commitment to the hiring and promotion of women and lawyers of diverse backgrounds into visible and prominent leadership roles differentiates us – and should serve as a model for other firms. Success in the advancement of our DE&I goals is driven by three pillars: a global mindset, inclusion, and helping our colleagues build and expand impactful relationships internally and externally.  

CA: What advice do you have for students and junior associates who are just about to embark/have just embarked on their legal career?  

Look for a firm that is capable of smoothly navigating unexpected changes.  

Look for a firm that provides a realistic, goal-oriented path toward growth.  

Look for a firm that identifies milestones that you can be proud of and that reflect your achievements.  

Look for a firm that realizes that clients value lawyers who understand big-picture business issues and how those impact legal matters.  

Look for a firm that expects their lawyers to be forward-thinking so that they understand client needs today and can anticipate their needs for the future. Make sure the firm you choose prepares associates to rise to the challenges clients face in an increasingly complex and dynamic global market.  

Look for a firm that helps you become the best version of yourself whether your ambitions are to pursue an alternative direction or stay at the firm for a lifetime.