The Poaching Pecking Order

The Poaching Pecking Order
Emerging tech firms hunt talent as top-tier practices lure laterals

By Renee Deger

......... R E L A T E D L I N K S .........
+ Next: Peanuts, Cracker Jack and Space Problems at Perkins Coie
+ Big Deals, Big Suits: Biggest-Ever Software Merger
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C ompetition for laterals may be tough among the Bay Area's top technology firms, but it's nothing like the hardscrabble for lawyers among firms still hoping to bulk up their Silicon Valley practices.
A chain of recent lateral partner hires among Silicon Valley tech practices reveals the pecking order that recruiters say is creating opportunities for tech lawyers who may not have had a shot at working for a larger firm.
Palo Alto's Wilson Sonsini Goodrich & Rosati, for example, has been finding some of its new hires among firms with budding tech practices. In turn, those firms are looking at even smaller firms to help fill their ranks.
"There probably is a pool of people out there that never thought that they would have an opportunity to break into the bigger firms," says Avis Caravello, a longtime San Francisco recruiter.
And the lawyers don't necessarily need to be rainmakers. In fact, a big book of business may make it harder for tech firms to integrate new clients. Brains and ability are the key attributes firm managers say they are looking for.
"As to book of business, we don't care at all," says Richard Climan, Cooley Godward partner and chairman of the firm's hiring committee. "Both in lateral associate recruiting and in the lateral partner recruiting arenas, what counts more than anything else is quality [and] superb legal skills."
Take Wilson Sonsini's recent hire of Karen Dempsey from Pillsbury Madison & Sutro, leaving that firm casting about for talent to fill the gap.
Lateral partner hires are rare for Wilson Sonsini to begin with, but when it acts the firm scoops out the rising talent at firms like Pillsbury, a San Francisco stalwart which has been developing tech talent to grow its Silicon Valley presence.
And Dempsey was the second seasoned partner Wilson snagged from Pillsbury in six months, having lured away Katharine Martin in September.
With its powerful mix of profits and prestige, Wilson could arguably recruit from any firm it wants. And the same cachet makes it relatively immune from poaching, save for the notable exception of Francis Currie, a high-profile partner who went to New York's Davis Polk & Wardwell. Most other recent high-profile departures have to been to in-house spots.
So what's a firm like Pillsbury to do? Start fishing at smaller firms.
Pillsbury's Palo Alto office, for example, snagged four key South Bay partners last month from 40-lawyer Rosenblum, Parish & Isaacs, a San Francisco-based general business firm.
"Culturally, the San Jose people fit better in Pillsbury," says Larry Watanabe, a Southern California recruiter who placed the team last month. "These people have a book of business they wanted to integrate into a larger firm."
Like other firms with growing tech practices, Pillsbury is turning away work, Watanabe says. And unlike firms such as Cooley or Wilson, it was able to absorb the clients the Rosenblum team brought with them, he says.
When Wilson last year hired Michael Kennedy and Steve Camahort away from Brobeck, Phleger & Harrison, for example, the arrangement didn't include the duo bringing clients with them, say people close to the deal. Wilson was solely interested in their mergers and acquisitions expertise.
M&A talent and intellectual property expertise is paramount among new candidates, recruiters say. The Rosenblum team, for example, included representatives who had expertise in both areas.
"The value is the senior lawyers, the ability to take on clients, mentor junior associates -- that's what the firms are looking for now," Caravello says
In some cases, the prospect of having to absorb a candidate's stable of clients has made new relationships problematic, says another top S.F. recruiter, Robert Major Jr.
"We have [law firm] clients now who have asked us to look for partner-level people where a book a business would be a hindrance," says Major, of Major, Hagen & Africa. Nevertheless, that is still the exception rather than the rule, he adds.
Despite some of the cannibalism among Silicon Valley firms, some believe the market may be opening up a bit. The reason: High-profile salary increases at local firms have put a national spotlight on the Valley, attracting inquiries from candidates at larger firms in other markets.
"I think the explosion in interest in the Silicon Valley has made it a lot easier for us to attract the numbers of lawyers we need without sacrificing quality," Climan says.
Getting on the national scene helps firms like Cooley cast a wider net in cities that haven't already been picked over, and Climan says candidates from these markets are every bit as well-trained as lawyers from local tech firms.
"Many of these candidates are rethinking their original geographical choices," he adds. "They figured out they can do top-dollar work out here."
Nevertheless, home-grown talent still has a better chance now than ever before at scoring a coveted office at the likes of Wilson, thanks to demands by fast-growing Internet companies.
As in commerce, the Internet has proved to be a great equalizer in lawyering, breaking down the barriers of the past and creating new opportunities for attorneys who wouldn't get the chance otherwise.
Says Caravello, "A transactional lawyer is a transactional lawyer."

......... R E L A T E D L I N K S ......... + Next: Peanuts, Cracker Jack and Space Problems at Perkins Coie + Big Deals, Big Suits: Biggest-Ever Software Merger ..........................................................			C ompetition for laterals may be tough among the Bay Area's top technology firms, but it's nothing like the hardscrabble for lawyers among firms still hoping to bulk up their Silicon Valley practices. A chain of recent lateral partner hires among Silicon Valley tech practices reveals the pecking order that recruiters say is creating opportunities for tech lawyers who may not have had a shot at working for a larger firm. Palo Alto's Wilson Sonsini Goodrich & Rosati, for example, has been finding some of its new hires among firms with budding tech practices. In turn, those firms are looking at even smaller firms to help fill their ranks. "There probably is a pool of people out there that never thought that they would have an opportunity to break into the bigger firms," says Avis Caravello, a longtime San Francisco recruiter. And the lawyers don't necessarily need to be rainmakers. In fact, a big book of business may make it harder for tech firms to integrate new clients. Brains and ability are the key attributes firm managers say they are looking for. "As to book of business, we don't care at all," says Richard Climan, Cooley Godward partner and chairman of the firm's hiring committee. "Both in lateral associate recruiting and in the lateral partner recruiting arenas, what counts more than anything else is quality [and] superb legal skills." Take Wilson Sonsini's recent hire of Karen Dempsey from Pillsbury Madison & Sutro, leaving that firm casting about for talent to fill the gap. Lateral partner hires are rare for Wilson Sonsini to begin with, but when it acts the firm scoops out the rising talent at firms like Pillsbury, a San Francisco stalwart which has been developing tech talent to grow its Silicon Valley presence. And Dempsey was the second seasoned partner Wilson snagged from Pillsbury in six months, having lured away Katharine Martin in September. With its powerful mix of profits and prestige, Wilson could arguably recruit from any firm it wants. And the same cachet makes it relatively immune from poaching, save for the notable exception of Francis Currie, a high-profile partner who went to New York's Davis Polk & Wardwell. Most other recent high-profile departures have to been to in-house spots. So what's a firm like Pillsbury to do? Start fishing at smaller firms. Pillsbury's Palo Alto office, for example, snagged four key South Bay partners last month from 40-lawyer Rosenblum, Parish & Isaacs, a San Francisco-based general business firm. "Culturally, the San Jose people fit better in Pillsbury," says Larry Watanabe, a Southern California recruiter who placed the team last month. "These people have a book of business they wanted to integrate into a larger firm." Like other firms with growing tech practices, Pillsbury is turning away work, Watanabe says. And unlike firms such as Cooley or Wilson, it was able to absorb the clients the Rosenblum team brought with them, he says. When Wilson last year hired Michael Kennedy and Steve Camahort away from Brobeck, Phleger & Harrison, for example, the arrangement didn't include the duo bringing clients with them, say people close to the deal. Wilson was solely interested in their mergers and acquisitions expertise. M&A talent and intellectual property expertise is paramount among new candidates, recruiters say. The Rosenblum team, for example, included representatives who had expertise in both areas. "The value is the senior lawyers, the ability to take on clients, mentor junior associates -- that's what the firms are looking for now," Caravello says In some cases, the prospect of having to absorb a candidate's stable of clients has made new relationships problematic, says another top S.F. recruiter, Robert Major Jr. "We have [law firm] clients now who have asked us to look for partner-level people where a book a business would be a hindrance," says Major, of Major, Hagen & Africa. Nevertheless, that is still the exception rather than the rule, he adds. Despite some of the cannibalism among Silicon Valley firms, some believe the market may be opening up a bit. The reason: High-profile salary increases at local firms have put a national spotlight on the Valley, attracting inquiries from candidates at larger firms in other markets. "I think the explosion in interest in the Silicon Valley has made it a lot easier for us to attract the numbers of lawyers we need without sacrificing quality," Climan says. Getting on the national scene helps firms like Cooley cast a wider net in cities that haven't already been picked over, and Climan says candidates from these markets are every bit as well-trained as lawyers from local tech firms. "Many of these candidates are rethinking their original geographical choices," he adds. "They figured out they can do top-dollar work out here." Nevertheless, home-grown talent still has a better chance now than ever before at scoring a coveted office at the likes of Wilson, thanks to demands by fast-growing Internet companies. As in commerce, the Internet has proved to be a great equalizer in lawyering, breaking down the barriers of the past and creating new opportunities for attorneys who wouldn't get the chance otherwise. Says Caravello, "A transactional lawyer is a transactional lawyer."