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Skadden in Chicago: Too Popular For Its Own Good?

Friday, July 18, 2008 2:17 PM - By David Lat

Skadden Arps Slate Meagher Flom LLP new logo.jpgIn a recent post about summer associate programs, we wrote:

[W]e’ve heard a rumor that summers in the Chicago office of a major national firm were told, early in the program, that there were only enough offers for two-thirds of them. It seems implausible, and right now it’s unconfirmed; if you can confirm, please email us.

In the comments, speculation centered on the Chicago office of Skadden Arps. It’s true that Skadden was the firm we heard the rumors about.

But the rumors themselves are NOT TRUE. We did some poking around and got to the bottom of the situation.

As is often the case, there are aspects of truth to the gossip. Skadden Chicago does have its largest summer class ever (perhaps due to the fact that the firm pays New York-level base salaries AND bonuses in the Windy City, well above Chicago market). Concern about the size of the summer class surfaced as early as February, over at Skadden Insider.

Based on our investigation, however, the rumors of a lower-than-usual offer rate are inaccurate. The Skadden summers have nothing to worry about.

Read more, below the fold.

Here are the rumors that we heard, via email (and also echoed in the comments). From one source:

“I heard from two separate sources, one of which heard from a summer at Skadden Chi-town, that out of the 80 or so Summers in the Chicago office, only 50 were going to get offers. Other than the two people I heard it from, I offer no other corroboration.”

And another (but with a somewhat lower number of summers):

“The rumor going around the city is that Skadden’s summer program in Chicago was vastly oversubscribed. Basically, they were aiming for around 40 summers and ended up with 70+ (in part because they pay the New York market rate + bonus, which is higher than almost all of the Chicago-based firms). Skadden’s Chicago office has fewer than 200 attorneys total, so they obviously can’t handle 70 first years.”

“Even with the customary clerks, declines, etc., they’re still looking at more first years than they know what to do with. I don’t think Skadden in Chicago has been particularly slow (at least not any slower than anyone else), but people have been interested to see how they handle their summer class.”

Sounds worrisome, right? But here are the facts, obtained from our sources at Skadden in Chicago:

1. The Skadden - Chicago summer class does not contain “70 or 80” summers. The actual number is 59. Two of the 59 are returning 3Ls who will be clerking in the coming year, which takes the number down to 57. Of the 57, 8 are splitting; they may or may not go to the Chicago office.

2. The firm is planning to make offers to summer associates in the ordinary course, evaluating them according to the usual standards. In other words, it’s “business as usual” (read: you’ll get an offer, if you have a pulse and don’t jump into Lake Michigan; and even then, you’ll probably still get a cold offer).

3. This year’s summer class is larger than last year’s class of 36. It’s also the largest class in the office’s history. But the growth is the result of a deliberate decision on the part of firm management to have a bigger class.

4. The decision to hire a larger class was based in part on work levels. “We’re very happy with the summer class we have,” said our Skadden source. “We are just humming along and very busy. Our summers have been involved in some of the major deals we’ve had in the office.”

Of Thompson’s top 10 deals (PDF), three are being handled out of Skadden - Chicago. So right now there is plenty of work to go around.

5. In addition, the bringing on of a bigger class reflects the fact that the firm is moving into new quarters next year (summer 2009). The new space will have room for all of the full-time attorneys — roughly 200, going up to 220-225 or so with the arrival of the fall 2008 class — and then some.

6. The office’s managing partner, Wayne Whalen, reassured the summers earlier in the program that there was room enough for all of them, that offers would be given out in the ordinary course (read: to all or almost all summers), etc.

7. But even that reassurance should not be interpreted defensively, or in a “methinks the partner doth protest too much” manner.

“Wayne makes an opening speech,” said one Skadden Chicago source. “He gives the same speech every year, and every year he reassures everyone. Summers by their nature are always nervous until they get their offers. His speech [this year] was the same [as in past years].”

So relax, Skadden summers in Chicago! Your future is secure.

Now go out and have some fun. Why not take a page from the Kirkland & Ellis playbook, go on a booze cruise, and get decked by a female townie?

Enjoy the rest of the summer!

P.S. If you haven’t done so already, feel free to take our reader survey about summer associate offer rates, which is still open.

Summer in Chicago [Skadden Insider]

Earlier: Now Is the Summer of Their Discontent: Bad Times for Summer Associates?
Associate Life Survey: Offers For All The Summers?

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Posted in: Job Searches, Skadden Arps, Summer Associates

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