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History: a mere youngster Wilson Sonsini was founded in Palo Alto in 1961 as McCloskey, Wilson, Mosher & Martin. Founding partner John Wilson recognized that the young inventors and financiers in the area would need a law firm to represent their interests. The firm began by helping clients connect with the Valley's venture capital community. Wilson recruited partners Larry Sonsini in 1966 and Mario Rosati in 1971. In 1978, Sonsini took over as leader of the firm. Two years later, Apple tapped the firm to handle its much-publicized IPO. After that deal, the firm was still a relatively minor player with only 32 attorneys. But by 1986, the firm had tripled in size, and its growth has continued unabated. The firm employs over 550 attorneys, with a support staff that is twice that size. Another record year Wilson Sonsini enjoyed a tremendously successful year in 1999. The firm refuses to allow a year to pass without posting record revenues and partner profits. Riding what The Recorder called "a tsunami wave of corporate securities work," Wilson Sonsini's revenue leapt to $296 million in 1999, a 38 percent increase over the previous year. Partner profits also increased by 35 percent, going from $620,000 in 1998 to $838,000 in 1999. Handling more initial public offerings than any other law firm, Wilson Sonsini continues to earn its reputation as a premier California law firm in the burgeoning technology industry. The IPO wave washes over Wilson Wilson Sonsini ushered 47 young companies to their IPOs in the first half of 1999, more than double the number it introduced the previous year. While the bulk of its securities deals came early in the year, the biggest IPOs (in terms of profits) came during the second half of 1999. Unless the ABA puts an outright ban on investing in clients, Wilson Sonsini will continue to enrich its portfolio in this manner. During the period from July to December 1999, Wilson Sonsini brokered three IPOs that brought in significant profits for the firm: VA Linux, Ask Jeeves, and Webvan. Wilson Sonsini hits the jackpot On December 9, 1999, VA Linux, a software company that bases its products on an operating system with the potential to compete with Microsoft's Windows, went public with an initial share price of $30. Judith O'Brien, the first woman to make partner at Wilson Sonsini, led the deal as issuer's counsel. When the stock closed at $239.25, Wilson Sonsini, the company's longtime counsel, sat on 102,584 shares that were suddenly worth $24.5 million. The 698 percent increase in stock price remains a first-day record. The Ask Jeeves IPO in July, also managed by Wilson Sonsini, had set the previous record - Ask Jeeves stock rose from $14 to $186 on the first day of trading. The firm's 275,000 shares were pushing $18 million in value by the end of the day. In terms of absolute gains, though, the November 1999 Webvan IPO led the way. Wilson Sonsini owns more than a million shares in the online grocer. Combined with the personal stake that partner Jeffrey Saper has in the venture, the law firm holds over 2 million shares. The value of those shares at the close of trading was $51,475,327 - not bad for a day's work. (Since that time, the value of these shares has fallen significantly.) Bonuses and expansion Senior associates have also recently been allowed to participate in the investment pools created with the firm's profits. This gives associates an opportunity to get equity in their clients, enabling them to try their luck with Internet IPOs. There is also a new plan to provide associates quarterly "productivity adder" bonuses of $2,500 to reward those putting in an extra effort. As salaries and profits balloon, Wilson Sonsini continues to expand and grow. After establishing Seattle and Austin outposts in 1998 and 1999 the firm went bi-coastal in spring 2000 with a new office in northern Virginia. The development of the tech industry in the Dulles corridor near Washington, DC inspired the firm's newest location. Don't look for the expansion to stop there, either. Larry Sonsini, the firm's chairman, has said the firm is "continuing to evaluate the placement of other offices, including the possibility of opening an office in New York."
Pedigree still matters; so does interest in tech Despite its need for more manpower, the firm apparently still insists on pedigree in its hiring of law students. "The firm tends to only look at the top schools," one insider says. The firm reports that along with local elites such as Stanford and Boalt Hall, many associates come from Harvard, Columbia, and NYU. One associate reports that the "law school attended is important." Says another, "It can be very snooty around here because of all the pedigrees." One associate without such a pedigree remarks: "When you're talking about firms like this and you don't have it on paper, you have to show it in the interview. In my interviews either I brought it up or they did, so I inevitably got into a large discussion about the law." Other contacts at Wilson say that this quizzing isn't just directed at those graduating from less-distinguished institutions. "We ask the 'Why do you want to work here?' question, and we need to see that they really get the Silicon Valley difference," says one associate. "We don't want to hear, 'Well, you're prestigious.' You've got to love the business and be excited about the Valley." Also, that contact says, "It seems that there are a lot of people who have different degrees - JD/MBAs and people with engineering backgrounds - because it's such a business-oriented law firm." Another insider agrees on the need to emphasize an interest in Wilson's client base. "So much of our practices focuses on high tech," says another insider, "that it would help to be able to tie your own background to that."
Pick your partner Treatment by Wilson Sonsini partners is good in general because of a free-market system. "There is an open market here," reports one associate. "If a partner doesn't treat you well you can either leave that section of the firm and go somewhere else or go to some other firm or a client. Partners who don't treat associates well don't have many associates for very long." Another contact says that "partners will chat like equals, will discuss points of law or business, and no one seems to be afraid of them at all." That associate reports that "I've never been yelled at or combed down, and when I make a mistake or have a client problem I have always been backed up." Busy, but things are getting better In a burgeoning practice such as Wilson, hours are as crazy as one might expect. One associate claims to often work 12-hour days Monday through Friday, with an extra five on weekends. However, the firm is reportedly trying to accommodate the lifestyle needs of its attorneys. "The firm has made a real commitment to reduce hours by being very selective in any new business and managing the clients' expectations on timing of transactions," says one insider. Another associate says, "Everyone here is concerned about making sure we have balanced lives." Pay: investment opportunities, too Most associates seem happy with their pay - "very, very happy" in one case. "Wilson's pay is among the best the Valley has to offer," says one contact. Wilson has been one of the first firms to permit the controversial practice of allowing associates to invest in the companies they represent. "We get great opportunities to invest in Wilson Sonsini clients that we work on," says one lawyer. "This benefit shouldn't be underestimated." Training: you have to ask Insiders are generally pleased with both the formal and informal training but say much of the responsibility for arranging training falls to the associate. "There is a good initial training program, and I can always go ask about things," says one associate. "Day-to-day mentoring working on the same deal isn't much. In some ways this is great because I learn by doing and I know that there are always people willing to help. The trick is that you have to ask." One confused associate gripes, "The firm has a training program and lots of institutional knowledge from the extensive deal flow. I still don't feel like I know what I'm doing, though." Revolving door In a fertile land of opportunity, it's not surprising that many Wilson associates leave in pursuit of other positions. "It's a revolving door," says one insider. "I don't think it's because life is so miserable here, but because the market is good and people have more choices than they're used to." The Internet firms that make up Wilson's clientele often poach talented associates. "People go to great in-house positions, not other law firms," reports one associate. "I think the turnover is a symptom of the great opportunities we have, not that we're not a good place to work." Partnerships going to the dogs Those who do stick around have an excellent chance to make partner. "Almost everyone that is eligible makes partner in year seven," according to one contact. "One of the partners here said he'd put up his dog for partnership next year since it was so easy to make it," says an attorney. "I don't know about that, but they don't seem to worry about making too many partners, which is nice." Unlike at many firms, partnership seems to hinge strictly on quality of work, not the amount of business you bring in. "WSGR doesn't care if you're not a rainmaker - we have plenty of work without spending a lot of time going out looking for more." Why Wilson? Wilson is definitely near the top in the tech world. Associates list Wilson's stature in Silicon Valley as one of the best things about the firm and many cite it as a factor in choosing their offer. Wilson has "the most exciting client base of any law firm, exciting deals, and tremendous levels of responsibility," says one associate. Other insiders say the people and atmosphere were important criteria and that the majority of summer associates receiving offers choose Wilson, most without seriously considering another firm. "There is no better place at which to practice law in Silicon Valley," sums up one associate. Want to learn more about Wilson Sonsini? Check out its firm profile.
Kelly McHaffie Director of Attorney Recruiting (888)GO2-WSGR (650) 493-6811
Brobeck, Phleger & Harrison;Cooley Godward;Gunderson Dettmer Stough Villeneuve Franklin & Hachigan;Morrison & Foerster; Venture Law Group More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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