Skadden, Arps, Slate, Meagher & Flom (world rank # 5)

Friday, November 6, 2009

Skadden, Arps, Slate, Meagher & Flom

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (often shortened to Skadden Arps, Skadden, or SASM&F)

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates
Headquarters	New York, N.Y.
No. of Offices	23
No. of Attorneys	2,000+[1]
No. of Employees	4,500 (estimate)
Major Practice Areas	Corporate, litigation, finance, international, regulatory/legislative, industry-related practices, employment issues and advice to individuals[2]
Revenue	$2.2 billion USD (2008)[3]
Date Founded	April 1, 1948
Founder	Marshall Skadden, John Slate, and Les Arps
Company Type	Limited liability partnership

 founded in 1948, is a prominent law firm based in New York City. With over 2,000 attorneys, it is one of the largest and highest-grossing law firms in the world.^[4]Forbes magazine calls Skadden "Wall Street's most powerful law firm".^[5] In most jurisdictions, the firm is organized as a limited liability partnership (LLP). The firm's best-known and infamous alumni include former New York Governor Eliot Spitzer^[6]and Chelsea Football Club's Chairman Bruce Buck.

Size

Skadden's world headquarters in theCondé Nast Building, Times Square, New York

[edit]Ranking among law firms by revenue

With US$2.2 billion in annual revenue, Skadden is the largest law firm in the U.S. in terms ofrevenue.^[3][4] The firm has held this position for ten years running and in 1999 became the first law firm to exceed US$1 billion in annual revenue. Its revenue also makes Skadden the third largest law firm in the world, behind two U.K. firms.^[4]

[edit]Ranking among law firms by number of attorneys

Skadden has over 2,000^[1] attorneys in 23 offices. The total number of employees is nearly 4,500. In terms of the number of attorneys, Skadden is the largest law firm in the state of New York,^[7] the fifth largest in the United States,^[8] and the eighth largest in the world. Skadden ranks 213th onForbes's list of the largest U.S.-based private companies (2008).^[9]

In 2007, the National Law Journal ranked Skadden 5th in its list of the 250 largest law firms in the United States.

Despite its size, Skadden has been distinguished by its refusal to expand by mergers with other law firms or large acquisitions of practice groups. The firm has never acquired a practice group larger than six attorneys, in sharp contrast with rivals such as Baker & McKenzie, which has repeatedly absorbed local practices, or DLA Piper and Clifford Chance, which are the products of large mergers (often across national and continental borders). Consequently, charges of varying quality between offices of comparable-sized firms have been countered by Skadden's assertion that it has controlled the selection and training of its attorneys to match its domestic reputation.

[edit]Ranking among all private U.S. companies by revenue

Skadden's ranking on Forbes's list of America's Largest Private Companies consistently increased between 1995 and 2003 but fell from 2004 through 2006, with a one-place increase in 2007, and rising twelve places in 2008.

• 2008 — 213th^[9]
• 2007 — 225th^[10]
• 2006 — 226th^[11]
• 2005 — 216th^[12]
• 2004 — 205th^[13]
• 2003 — 194th^[14]
• 2002 — 200th^[15]
• 2001 — 224th^[16]
• 2000 — 230th^[17]
• 1999 — 245th^[18]
• 1998 — 269th^[19]
• 1997 — 297th^[20]
• 1996 — 310th^[21]
• 1995 — 335th[21]

  Reputation

  In addition to its headquarters in New York — the largest single law office in the U.S. — Skadden's domestic practice is particularly renowned in its Los Angeles, Chicago, Boston^[22], Wilmington and Washington, D.C., offices. Internationally, the firm also has particularly high-profile overseas practices in London, Frankfurt, Munich, Tokyo, and Hong Kong.
  

  Famed for pioneering mergers and acquisitions (and hostile takeovers) in the American corporate environment, Skadden has played a significant role in U.S. and international business despite being far younger than many competing white shoe firms. Arguably the most recognizable law firm outside the legal industry, the firm is considered one of the most prestigious in the world, consistently ranking in the top five of Vault's annual list of the top law firms in the U.S. and boasting highly competitive foreign practices. The Skadden Fellowship, funded by the firm, is considered the most prestigious public-interest grant in the U.S. and is greatly sought-after by graduates of top law schools.
  

  Among Skadden's main practice areas are mergers and acquisitions (M&A), litigation, securities law, taxation, and bankruptcy representation. The firm has counted a majority of the Fortune 500's top 50 companies as clients. Skadden has been selected for each of the past six years as the best corporate law firm in the U.S. according to a survey of 1,390 directors and 279 general counsel of publicly traded companies byCorporate Board Member magazine and FTI Consulting.^[23]
  

  Although called a sweatshop by some,^[24] Skadden is also known for its generous attorney compensation. Like other top national firms, it pays its first-year associates $160,000. This does not include the annual discretionary bonus.^[25]
  

  [edit]Layoffs, Deferrals, and Skadden "Sidebar" and "Sidebar Plus"

  Skadden has engaged in several rounds of layoffs, affecting staff attorneys and support staff.^[26][27] There is no evidence that Skadden has laid off any associate attorneys. But in March 2009, it instituted a "Sidebar Plus" program. The "Sidebar" program at Skadden has been in existence for a number of years and permits attorneys to take up to two years off to pursue personal interests. The "Sidebar" program, in contrast to the "Sidebar Plus" program, does not typically give participants any benefits other than a guaranteed job offer. Under the "Sidebar Plus" program, associates may leave the firm for up to a year to pursue public interest or other opportunities and receive one-third of their base salary, student loan payments, and reimbursement of COBRA payments during this time. Incoming associates of the Class of 2009 may also participate in the program and defer their start dates until 2010.^[28] The program is currently voluntary. It has been praised as an innovative and creative response to the Great Recession by some while others express skepticism and question whether the firm is going to welcome these associates back.^[29][30] The Summer Class of 2009 will not be starting as full-time attorneys in 2010. It has been deferred until 2011. Decisions as to exact start dates and stipends have not yet been made.^[31]
  

  [edit]Key people

  [edit]Partners

  As of May 2008, there are 470 partners at Skadden.^[32] Unlike some firms which have introduced two-tier partnerships with equity and non-equity partners, Skadden maintains a one-tier partnership, in which all partners are equity partners and share ownership of the firm.^[33] Among the more notable partners are:
  

  • Joseph H. Flom became the firm's first associate in 1948. Of the firm's five "name" partners, Flom is the only one still living. He is recognized as a pioneer in the field of mergers and acquisitions.^[34][35]
  • Robert C. Sheehan held the position of Executive Partner, equivalent to a corporate chief executive officer (CEO), from 1994 to 2009.^[36] He stepped down when his third term ended in April 2009.^[37]
  • Eric J. Friedman, a mergers and acquisitions partner in New York, succeeded Bob Sheehan as the firm's Executive Partner in April 2009.^[37] The firm has had only three executive partner in the 28 years of the position's existence (Sheehan, Friedman, and Peter Mullen).
  • Roger S. Aaron is the senior partner in charge of all of the firm's corporate practice areas.^[38]
  • William P. Frank is the firm's national litigation legal practice leader.^[39]
  • Robert S. Bennett has been called "One of the top white-collar criminal and corporate defense attorneys in the country" in a National Law Journal article titled "The 100 most influential lawyers in America".^[40] Bennett's clients have included Bill Clinton in the Paula Jones case and New York Times reporter Judith Miller in the CIA leak investigation.
  • Sheila Birnbaum is considered one of the nation's leading experts on toxic tort law. She has been named by Fortune magazine as one of the "50 Most Powerful Women in Business"^[41] and by the National Law Journal as one of the 100 most influential lawyers in America.^[40][42]
  • Bruce Buck, a partner based in London who oversees all European offices, is chairman of the Chelsea Football Club.^[43]
  • Preeta D. Bansal, former New York State Solicitor General and current member of the United States Commission on International Religious Freedom, heads the firm's appellate litigation and complex legal issues practice.^[44]
  • Clifford (Mike) M. Naeve heads the firm's Energy Practice Group.^[45]
  • Paul Mitchard, a partner in the London office, is one of the few solicitors to be named Queen's Counsel, an honor typically granted tobarristers.^[46]

  [edit]Of Counsel

  "Of counsel" are retired partners who maintain professional ties with the firm. As of May 2008, the firm has 36 of counsel,^[32] including:
  

  • Peter P. Mullen served as the firm's Executive Partner from 1981 to 1994.^[47]

  [edit]Directors

  Directors are non-attorneys who head the firm's support departments.
  

  • Earle Yaffa is the Managing Director (the highest-ranking non-partner), a position he has held since 1980.^[48]
  • Carol A. Sawdye is a Senior Director.
  • Laurel E. Henschel is a Senior Director and Chief Administrative Officer.
  • Noah J. Puntus is the Chief Financial Officer.
  • Harris Z. Tilevitz is Chief Technology Officer.
  • Peter E. Lesser is Director of Global Technology.
  • Jodie R. Garfinkel is the Director of Professional Personnel and Attorney Development
  • Sally J. Feldman is the Director of Marketing and Business Development.
  • Stephan J. Bell is the Director of Client Accounting.
  • Neil McNally is the Director of Business/Practice Analysis and Support.

  [edit]History

  • 1948 — The firm was founded in New York by Marshall Skadden, John Slate and Les Arps.
  • 1954 — Joseph Flom became a partner.
  • 1959 — Bill Meagher (pronounced "mar", not "mee-gur") joined the firm. Elizabeth Head, the firm's first female attorney, was hired.
  • 1961 — The firm's name became Skadden, Arps, Slate, Meagher & Flom.
  • 1973 — The firm opened its Boston office, the firm's second.
  • 1981 — Peggy Kerr became the first female partner.
  • 1985 — Skadden became one of the U.S.'s three largest law firms.
  • 1987 — The firm opened its first international office in Tokyo.
  • 1988 — The firm founded the Skadden Fellowship Foundation.
  • 2000 — New York City headquarters moved to Four Times Square, also called the Condé Nast Building.

  [edit]Locations

  Skadden has 24 offices. The number in parentheses indicates the year the office opened.^[33]
  

  [edit]North America

  [edit]United States of America

  • New York, New York (1948) (headquarters)
    • White Plains, New York (administrative extension of headquarters with no attorneys)
  • Boston, Massachusetts (1973)
  • Chicago, Illinois (1984)
  • Houston, Texas (1993)
  • Los Angeles, California (1983)
  • Palo Alto, California (1998)
  • San Francisco, California (1987)
  • Washington, D.C. (1975)
  • Wilmington, Delaware (1979)

  [edit]Canada

  • Toronto, Ontario (1990)

  [edit]South America

  • São Paulo, Brazil (2008)^[49][50]

  [edit]Europe

  • Brussels, Belgium (1990)
  • Frankfurt, Germany (1990)
  • London, England (1988) — officially, Skadden, Arps, Slate, Meagher & Flom (UK) LLP
  • Moscow, Russia (1992)
  • Munich, Germany (2004)
  • Paris, France (1990)
  • Vienna, Austria (2001) — officially, Skadden, Arps, Slate, Meagher & Flom (Europe) LLP

  [edit]Asia

  • Beijing, China (1991)
  • Hong Kong, China (1989) — general partnership, not LLP
  • Singapore (1996) — general partnership, not LLP
  • Shanghai, China (2008)^[51]
  • Tokyo, Japan (1987) — Skadden Arps Gaikokuho Jimu Bengoshi Jimusho; Skadden Arps Law Office; Skadden Arps Foreign Law Office (Registered Associated Offices)

  [edit]Australia

  • Sydney, Australia (1989) — general partnership, not LLP

  [edit]Closed offices

  Former firm offices no longer in operation include
  

  • Newark, New Jersey, United States — closed June 2004
  • Reston, Virginia, United States — 2002–October 2003

  [edit]Practice areas

  The firm specializes in the following areas of law:^[52]
  

  • Alternative dispute resolution
  • Antitrust
  • Appellate litigation and legal issues
  • Asia
  • Australia and New Zealand
  • Banking and institutional investing
  • Brazil
  • Canada
  • China
  • Communications
  • Complex mass torts and insurance litigation
  • Consumer financial services enforcement and litigation
  • Corporate
  • Corporation compliance programs
  • Corporate finance
  • Corporate governance
  • Corporate restructuring
  • Derivative financial products, commodities and futures
  • Employee benefits and executive compensation
  • Energy project finance and development
  • Energy regulatory
  • Environmental
  • Environmental (international)
  • Environmental litigation
  • Europe
  • European Union/International Competition
  • Financial institutions
  • Financial services
  • Gaming
  • Government contract disputes
  • Government enforcement litigation
  • Health care
  • Health care enforcement and litigation
  • Health care fraud and abuse
  • Hong Kong law
  • India
  • Information technology and e-commerce
  • Insurance
  • Intellectual property and technology
  • International arbitration
  • International law and policy
  • International tax
  • International trade
  • Investment management
  • Israel
  • Italy
  • Japan
  • Labor and employment law
  • Latin America
  • Lease financing
  • Life sciences
  • Litigation
  • Mergers and acquisitions
  • Outsourcing
  • Patent and technology litigation and counseling
  • Pharmaceutical, biotechnology, and medical device licensing
  • Political law
  • Private equity
  • Private investment funds
  • Pro bono
  • Public policy
  • Real estate
  • Real estate investment trusts
  • Russia and CIS
  • Securities enforcement and compliance
  • Sports
  • Structured finance
  • Tax
  • Tax controversy and litigation
  • Trademark, copyright, and advertising litigation and counseling
  • Trusts and estates
  • UCC and secured transactions
  • Utilities mergers and acquisitions
  • White collar crime

  [edit]Notable deals and cases

  • The firm participated in the RJR Nabisco buyout, orchestrated by Kohlberg Kravis Roberts & Co. the largest such deal in history, adjusted for inflation. Partner Peter Atkins led the Skadden team, which advised the RJR board of directors as to the financial soundness of the respective bids. Skadden's fee at the time was reported to be $25 million.
  • The firm represented HealthSouth Corporation, based in Birmingham, Alabama, after the Securities and Exchange Commission charged former management of committing fraud. HealthSouth has since recovered and still uses the firm as it main law firm.
  • Scott Simpson leads the European M&A division from London and has represented Gucci Group and Arcelor during their attempts to repel high-profile hostile takeovers.
  • Jay Kasner and Preeta D. Bansal represented Merrill Lynch before the Supreme Court in Merrill Lynch v. Dabit.
  • Tokyo partner Nobuhisa Ishizuka represented the U.S. side of the merger between Squaresoft and Enix, the largest in the Japanese electronic gaming industry.^{[citation needed]}
  • Gregory Miao and Jon Christianson of the Hong Kong office led the IPO of the China Construction Bank, the largest of 2005.
  • The firm currently represents XM Satellite Radio Holdings, Inc., in its approximately $13 billion tax-free merger-of-equals with Sirius Satellite Radio, Inc.
  • The firm represented Yahoo! in its proposed takeover by Microsoft.^[53]
  • The firm represented Bear Stearns in its $2-per-share acquisition by JPMorgan Chase in March 2008.^[54]

  [edit]Recognition and rankings

  • Chambers and Partners selected Skadden as the Global Corporate law Firm of the Year for 2006.^[55]
  • In 2006, Corporate Board Member Magazine named Skadden the top corporate law firm in America, as selected by 1,390 directors of publicly traded companies. Skadden has held the top slot for six years.^[23]
  • Vault, Inc. ranked Skadden fourth on its "Top 100 Most Prestigious Firms – 2008", a survey which asked law firm associates to rank the prestige of various firms. The Vault survey also ranked nine of Skadden's individual practice areas among the nation's ten best: Antitrust (tie, 4th); Bankruptcy (3rd); Corporate (3rd); International Law (8th); Litigation (5th); Mergers & Acquisitions (2nd); Real Estate (3rd); Securities (3rd); Tax (2nd).^[56]
  • For 2007, Skadden was ranked #9 on the Avery Index list of the Best Prestigious Law Firms to Work For.^[57]
  • In the 2006 edition of Chambers USA, 147 Skadden attorneys are highlighted as leading lawyers - more attorneys than at any other firm.
  • According to Thomson Financial's third-quarter 2006 M&A Legal league tables, Skadden ranked first by value for worldwide announced deals.
  • Skadden was named "Global Law Firm of the Year" and "USA Corporate/M&A Law Firm of the Year" at the Chambers and Partners annual dinner on May 19 in London.
  • Skadden ranked first by volume and deal count in representing issuers of U.S. High Yield Offerings, with 10 deals worth US$5 billion, according to Bloomberg's Q3 2006 Legal Adviser League Tables published in October 2006.
  • The firm was nominated as the best U.S. trainer (amongst U.S. Law firms based in London, England) for trainee solicitors by LawCareers.net.
  • At the 2008 ALB China Law Awards^[58], Skadden Arps was crowned:
    • Deal of the Year - Real Estate & Construction Deal of the Year
    • Deal of the Year - Debt Market Deal of the Year
    • Deal of the Year - Equity Market Deal of the Year
  • In 2008 Skadden was awarded Deal of the Year - Equity Market Deal of the Year at the 2008 ALB Hong Kong Law Awards^[59].

  [edit]Skadden Fellowship Foundation

  Through the Skadden Fellowship Foundation, the firm sponsors law school graduates who wish to practice public interest law. The foundationwas established in 1988 at the time of the firm's 40th anniversary. The Los Angeles Times has called the program "a legal Peace Corps."^[60]Fellows work with a sponsoring organization in the field of providing legal services to the poor, the elderly, the homeless, the disabled, and thedisenfranchised. Skadden pays fellows a salary of $46,000 (as of 2006), plus all fringe benefits the sponsoring organization offers its employees. As of 2006, the firm has awarded 473 fellowships.^[60]
  

  [edit]Notable alumni

  In addition to numerous professors and partners, both at Skadden and other firms, some of the more notable former Skadden attorneys include:
  

  • Greg Giraldo, ^[61] international comedian
  • Eliot Spitzer, former Governor of New York,^[6] and his wife, Silda Wall Spitzer^[62]
  • Leo Strine, Vice Chancellor, Delaware Court of Chancery
  • Mark Weldon, Chief Executive Officer, NZX - the New Zealand Stock Exchange
  • Laura Ingraham, conservative talk radio host
  • Chad S. Johnson, former President of the Stonewall Democrats
  • Faryar Shirzad, Managing Director and Global Head of Government Affairs at Goldman Sachs^[63]
  • Keith Gottfried, General Counsel for the U.S. Department of Housing and Urban Development
  • John Feerick, former Dean of Fordham University School of Law
  • Robert Del Tufo, former New Jersey Attorney General
  • Douglas Rediker, co-director of The New America Foundation's Global Strategic Finance Initiative
  • Joseph McCahery, Professor of Corporate Governance at the Duisenberg school of finance
  • Mary L. Smith, current nominee to be Assistant Attorney General for the United States Department of Justice Tax Division

  [edit]Controversies, scandals, and entanglements

  [edit]Skadden Insider

  The Skadden Insider was a fairly innocuous blog, with few posts and little revelation. The blog is purportedly operated by two associates of the firm, as yet anonymous. The Skadden Insider was little known until the operators decided to conduct a poll to crown the hottest female associate, with the hottest male associates, female partners, male partners, and summer associates to be selected in subsequent months. The blog's contest became very public after a memo to all of Skadden's U.S. attorneys from firm of counsel and employment advisor Hank Baer was leaked to the media.^{[64][65][66][67]} In the memo, Baer chastised the "insiders" for not upholding the firm's values and professionalism.
  

  [edit]Mark L. Bronson

  Mark L. Bronson, a real estate partner in Skadden's Tokyo office, died on November 21, 2007, at Brisbane airport in Australia. Bronson suffered a seizure while being detained by customs officials on suspicion of cocaine possession. He had been stopped after drug-sniffing dogs raised suspicion. He reportedly also coughed up plastic in his vomit, suggesting he may have ingested a bag of cocaine to avoid being caught.^[68][69]
  

  [edit]Political contributions

  Skadden partners and employees tend to support and contribute more to Democratic political candidates than to Republicans.^[70]
  

  Prominent lawyers at the firm endorsed and financially supported John Kerry in his campaign to become president of the United States in 2004.^[71][72]
  

  In the run-up to Super Tuesday, 2008, Skadden hosted a phone bank in support of Barack Obama.^[73][74]
  

  [edit]See also

  • Thomson Financial League Tables

  Further reading

  • Caplan, Lincoln (1993). Skadden: Power, Money, and the Rise of a Legal Empire. New York: Farrar Straus Giroux. ISBN 0-374-26566-6.
  • "How Skadden Does It", Andrew Longstreth, The American Lawyer, May 2006.

  [edit]External links

  • Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates Web Site
  • Skadden Fellowship Foundation
  • American Lawyer Media rankings
  • See this firm's profile on Martindale.com
  • Martindale.com augmented information with third-party sourced data to present a more comprehensive overview of the firm's expertise
  • LawPeriscope Profile
  • Hoover's Profile
  • Vault Profile
  • Yahoo! Finance Profile
  • The Legal 500 US Rankings
  • Skadden Insider blog
  • Corporate Board Member magazine