Shook, Hardy & Bacon L.L.P.

Transcription

1 2555 Grand Boulevard Kansas City, MO Phone: Fax: LOCATIONS Chicago, Denver, Houston, Kansas City, London, Miami, Orange County, Philadelphia, San Francisco, Seattle, Tampa and Washington, DC DIVERSITY LEADERSHIP Head(s) of Firm: Madeleine McDonough, Chair Diversity team leader(s): Kori S. Carew, Director of Strategic Diversity Initiatives NUMBER OF ATTORNEYS TOTAL NUMBER OF ATTORNEYS Currently As of December 31, 2016 Firmwide U.S. offices only

2 Law Firm Demographic Profile Does your firm have more than one tier of partnership? Yes ASSOCIATES (2016) SUMMER ASSOCIATES (2016) White/Caucasian African-American/Black 3 3 Hispanic/Latino 3 8 Asian 5 7 Multiracial 5 1 Openly GLBT 2 1 Total White/Caucasian 9 12 African-American/Black 0 1 Hispanic/Latino 2 0 Asian 0 1 Multiracial 1 1 Openly GLBT 2 0 Total EQUITY PARTNERS (2016) NON-EQUITY PARTNERS (2016) White/Caucasian African-American/Black 1 1 Hispanic/Latino 5 1 Asian 0 2 Openly GLBT 0 1 Total White/Caucasian African-American/Black 1 1 Hispanic/Latino 1 1 Asian 2 1 Multiracial 1 1 Openly GLBT 2 0 Total OF COUNSEL (2016) NEW HIRES (2016) White/Caucasian African-American/Black 2 1 Hispanic/Latino 2 4 Asian 1 1 Multiracial 1 0 Openly GLBT 2 3 Individuals with disabilities 1 1 Total White/Caucasian African-American/Black 1 0 Hispanic/Latino 0 2 Asian 0 1 Total 18 23

3 Strategic Plan and Diversity Leadership How does the firm's leadership communicate the importance of diversity to everyone at the firm? Shook believes that leadership must model inclusion. (1) Our Chair in 2016, John Murphy, several elected Executive Committee members, a chair or vice-chair from each division, and high-level leaders serve on and champion our D&I Committee and D&I Subcommittees participate in training and discussions and take lessons back to their departments; (2) Mr. Murphy and other leaders attend internal and external D&I events, accept awards on the firm's behalf and present internal D&I awards to exemplary employees (both attorney and professional staff); (3) Leaders regularly encourage attendance at D&I programs; (4) Our website devotes a page to diversity and inclusion and our firm vision statement emphasizes our commitment to create a diverse and inclusive environment; (5) We disseminate an Annual Report detailing the firm's D&I activities; (6) We use and our intranet to communicate our commitment to diversity and inclusion; (7) We host nationally acclaimed speakers/trainers to educate our employees about D&I issues and send our employees to local and national D&I conferences; (8) Our chair holds quarterly firm-wide and monthly partners' Open Forum discussions to listen and engage with employees, communicating the importance of key D&I initiatives; (9) We hold a Diversity & Inclusion Retreat for our minority and LGBT attorneys every other year, and the Executive Committee is invited to participate and network with our diverse attorneys; (10) Shook's Director of Strategic Diversity Initiatives regularly speaks to firm leaders and firm committees about integrating D&I initiatives into their departments, divisions and practice groups; (11) We hold D&I dialogues for all attorneys and professional staff; and (12) We created and continue to use our Diversity & Inclusion Commitment Plan to gauge attorney and staff participation in D&I initiatives and include the completion of the Commitment Plan as a component of the annual attorney evaluation and compensation process. Who has primary responsibility for leading diversity initiatives at your firm? Kori S. Carew, Director of Strategic Diversity Initiatives Does your law firm currently have a diversity committee? Yes If yes, does the committee's representation include one or more members of the firm's management/executive committee (or equivalent)? Yes If yes, how many attorneys are on the committee, and in 2016, what was the total number of hours collectively spent by the committee in the furtherance of the firm's diversity initiatives? Total attorneys on committee: 8 Total hours spent on diversity: 262 Comments: These are documented hours spent at Diversity & Inclusion Committee meetings by attorneys (and does not capture the extensive time of professional staff members of the committee) This number does not include time spent attending D&I conferences for training, which we do not track, or hours spent on action items on our Diversity & Inclusion Checklist or various diversity and inclusion activities. Does the committee and/or diversity leader establish and set goals or objectives consistent with management's priorities? Yes Has the firm undertaken a formal or informal diversity program or set of initiatives aimed at increasing the diversity of the firm? Yes If yes, is it formal or informal? Formal How often does the firm's management review the firm's diversity progress/results? Twice a year How is the firm's diversity committee and/or firm management held accountable for achieving results? Shook's Executive Committee, senior management, Diversity & Inclusion, Search, Professional Development and Associates Committees, and Office and Division Managing Partners share in the responsibility of leading our diversity and inclusion efforts and holding the firm accountable for achieving an inclusive work environment where all are respected. We pay close attention to our initiatives, measure our progress and evaluate efficacy on an ongoing basis. We willingly provide transparency of our D&I journey to all firm employees. Specifically, each year we host our Annual Diversity & Inclusion Strategic Planning Meeting, where Diversity & Inclusion Committee members, Subcommittee members, leaders from all other firm committees, and Executive Committee members, meet to discuss our progress, goals and needs. After the Strategic Planning Meeting, the Director of Strategic Diversity Initiatives provides a presentation to the Executive Committee detailing take-aways from the meeting and their alignment with our Strategic Plan. We produce a Diversity & Inclusion Annual Report distributed internally and externally to clients that summarizes the firm's accomplishments and progress toward our diversity and inclusion goals. Additionally, each attorney is held accountable with our Diversity & Inclusion Commitment Plan, which is an easy way to make diversity and inclusion a part of the daily lives and practice of our attorneys. The Commitment Plan offers over 80 ideas engaging in a wide array of D&I activities, trainings and programs. Partners' Commitment Plans are reviewed by the Executive Committee during the compensation process. All other attorney Commitment Plans are reviewed and incorporated into year-end evaluation, compensation, and bonus processes. By tying active participation in the firm's D&I commitment to compensation, we communicate the importance of everyone working toward creating an inclusive environment. Is your firm minority-owned or women-owned? No

4 Law Firm Diversity Initiatives INITIATIVES FOR ALL DIVERSE ATTORNEYS Already Completed Currently Addressing Not a Current Priority Undertake communication from firm management that diversity is a top priority of the firm Formalize diversity plan and committee with action steps and accountability to management Conduct firmwide diversity training for all attorneys and staff Focus on strengthening firm's mentoring program Conduct internal diversity needs assessment (e.g., culture and environment surveys) and/or retain diversity consultant to examine how firm culture might be more welcoming of minorities Support law firm's internal affinity networks Hire a director of diversity or other full-time professional to implement the firm's diversity program Coordinate or work with clients on diversity issues Develop/expand relationships with minority bar associations and other legal diversity organizations to offer firm's support of these networks

5 Law Firm Diversity Initiatives INITIATIVES SPECIFICALLY FOR MINORITY ATTORNEYS Already Completed Currently Addressing Not a Current Priority Increase the number of minority attorneys at the associate level Increase the number of minority attorneys at the partnership level Increase the number of minority attorneys in leadership positions Focus on strengthening firm's mentoring program for minority attorneys Manage/monitor allocation of work assignments and/or hours billed to ensure minority attorneys have equal access/inclusion on top client matters Other (please specify): We hold a Diversity Retreat every other year for minority and LGBT attorneys. We engage in Proactive Individual Engagement, where we examine the needs of our minority attorneys, their performance reviews and hours. We partner with team leaders to assess any problems, understand the attorneys' needs, create a comprehensive plan for success, and continuously revise our approach for the betterment of all our talent. We made a shift from "Retention" to "Engagement and Advancement." While our numbers generally remain higher than national averages, we recognize that we lose diverse lawyers in the pipeline., minority, LGBT, and veteran attorneys do not want to be merely "retained." Rather, they want to receive meaningful opportunities on their teams; utilize their talents, skills, and experiences; and achieve success as they define it. This change in approach has had a wide-reaching impact.

6 Law Firm Diversity Initiatives INITIATIVES SPECIFICALLY FOR WOMEN ATTORNEYS Already Completed Currently Addressing Not a Current Priority Institute a formal part-time policy that addresses partnership prospects Increase the number of women at the associate level Increase the number of women at the partnership level Increase the number of women in leadership positions Focus on strengthening firm's mentoring program for women Manage/monitor allocation of work assignments and/or hours billed to ensure women have equal access/ inclusion to top client matters Other (please specify): Available to all attorneys, Shook offers flexibility programs, including a ramp-up policy and an alternative work schedule policy, and maintains a partnership with the Diversity & Flexibility Alliance. Our ramp-up policy, which we call "Phase-Back," allows attorneys returning from parental leave the option to work a reduced-hours schedule during a three-month transition period. The option is available to all primary caregiver attorneys (regardless of whether they are the birth parent or adoptive parent), with no impact on their progression toward partnership. Secondly, our Alternative Work Schedule (AWS) program allows attorneys to work reduced hours on a flexible schedule that accommodates the needs of the attorney and the firm. For numerous years, Shook has had an active 's Management Council, a group of female partners, which works with the D&I Committee and our 's Initiatives Subcommittee to create and offer programming to benefit women attorneys. Finally, we provide access and encourage utilization of external business development training programs for women, such as The Center for WorkLife Law at UC Hastings College of the Law among several others.

7 Law Firm Diversity Initiatives INITIATIVES SPECIFICALLY FOR OPENLY GLBT ATTORNEYS Already Completed Currently Addressing Not a Current Priority Offer same-sex domestic partners the same benefits available to married individuals Increase the number of GLBT attorneys at the associate level Increase the number of GLBT attorneys at the partnership level Increase the number of GLBT attorneys in leadership positions Ensure that EEO and non-discrimination policies specifically address gender identity Other (please specify): Shook participates annually in the Human Rights Campaign's Corporate Equality Index and scored 100 percent for the seventh year in a row. Our domestic partner benefits also apply to same-sex relationships. Shook has been used as a role model for transgender inclusion. Our policies and benefits include: gender reassignment surgery, treatment of gender identity disorders, mental health counseling, pharmacy coverage, medical visits and lab procedures, and paid short term leave that can be used with regard gender identity disorders, gender dysphoria or transsexualism diagnoses, or for treatment related to sex affirmation or reassignment In 2012, the Mid-America Gay & Lesbian Chamber of Commerce (MAGLCC) was formed. MAGLCC is an organization that advocates, promotes and facilitates the success of the LGBT business community and their allies. In 2012, Shook became a member of MAGLCC and hosted and sponsored their Annual Business Equality conference, in addition to a Leadership Series they offer. Further examples of our commitment to and support of LGBT community include: Shook joined the Business Coalition for Workplace Fairness Act in support of ENDA legislation, publicly supported MONA (Missouri State legislation), legislation, and opposed legislations such as MO SJR 39 and Texas Competes. We amended our non-discrimination and harassment policies to add the protection of gender expression. Our firm's charitable giving policy was recently amended to include language stating we will not knowingly support organizations that have written policies that are inconsistent with our non-discrimination and harassment policies. Shook continues to participate as a recruiter and sponsor of the National LGBT Bar Lavender Law career fair. Shook continues to sponsor and participate in LGBT events throughout our various offices.

8 Law Firm Diversity Initiatives INITIATIVES SPECIFICALLY FOR ATTORNEYS WITH DISABILITIES Already Completed Currently Addressing Not a Current Priority Increase the number of attorneys with disabilities at the associate level Increase the number of attorneys with disabilities at the partnership level Increase the number of attorneys with disabilities in leadership positions Ensure that EEO and non-discrimination policies specifically address individuals with disabilities Other (please specify): In 2013, we launched a voluntary internal survey to ascertain which of our attorneys consider themselves to be differently abled. This information gathering was the first step in creating initiatives specifically for attorneys with disabilities. In order to provide opportunities for education, our Parents' Task Force hosted a luncheon/seminar on children with special needs. Additionally, our D&I Committee has hosted sessions on the deaf culture, experiences, and leveraging diversity and fostering equality for the deaf. We continue to offer a variety of education on differently able issues.

9 Pipeline Initiatives Does your firm actively engage in initiatives to feed the diversity pipeline by encouraging minority students to consider law as a career and/or assisting them in pursuing such opportunities? Participate in established pipeline programs, such as SEO, Legal Outreach, Prep for Prep or Street Law Fund scholarships for minority high school or college students tor high school or college students Participate in or host mock trial programs or career events Provide internships or employment to minority high school or college students Outreach to middle school students Please discuss any additional efforts to reach out to diverse undergraduates, high school, middle school or grade school students. Shook attorneys devote significant time volunteering as mentors and tutors at area high schools. We also sponsor the Cristo Rey work-study internship program in Kansas City and San Francisco, which provides disadvantaged high school students with the opportunity to gain work experience with our firm during the school year. We have sponsored a teacher through Teach for America (TFA), a corps of recent college graduates who commit to teaching for two years in urban and rural public schools. Shook annually supports the University of Missouri Kansas City's PRIDE Breakfast, whose proceeds fund scholarships for LGBT undergraduate students who have lost financial support from their parents, and to Jackson County Court Appointed Special Advocates (CASA) Light of Hope Breakfast, an organization that serves one-third of the children served in Missouri. We also support the Judicial Internship Opportunity Program, Kozyak Minority toring Foundation Annual Picnic in Miami, and local middle-school and high-school events focused on strengthening the pipeline of minority law students. The SHB Foundation has donated over $666,500 to universities and organizations working to increase the number of diverse law school graduates.

10 Recruitment - New Associates Does your firm annually recruit at any of the following types of institutions? Ivy League schools: None Other private schools: Seattle University School of Law; University of Chicago Law School; St. Louis University School of Law; Northwestern University Pritzker School of Law; Washington University School of Law; Creighton University School of Law; South Texas College of Law Houston; Santa Clara University School of Law Public state schools: University of Missouri-Kansas City School of Law; University of Kansas School of Law; University of Iowa College of Law; University of Missouri School of Law; Washburn University School of Law; University of Washington School of Law; University of Houston Law Center; University of Nebraska Lincoln College of Law; University of Texas School of Law Historically Black Colleges and Universities (HBCUs): None Diversity job fairs: Southeastern Minority Job Fair; Heartland Diversity Legal Job Fair; Lavender Law Career Fair; Cook County Bar Association Minority Job Fair Do you have any special outreach efforts directed to encourage minority law students to consider your firm? Hold a reception for minority students Advertise in minority law student association publications Participate in or host minority law student job fairs Sponsor minority law student association events Firm lawyers participate on career panels at schools Outreach to leadership of minority student organizations Scholarships or intern/fellowships for minority students Other (please specify) Do you have any programs specifically targeted at first-year students? Our firm actively recruits first-year students through our Summer Associate Program. Additionally, Shook provides annual Resume Building and Interviewing Skills Workshops to first-year students at the University of Missouri-Kansas City School of Law and the University of Kansas School of Law. In 2016, Shook provided financial support through several scholarship banquets and events, including, but not limited to: (1) University of Kansas Diversity in Law Banquet; (2) Asian Pacific Bar Association of Silicon Valley's Scholarship and Commitment to Diversity Banquet; (3) Jackson County Bar Association's Annual Judge Kit Carson Roque, Jr. Scholarship Banquet; (4) University of Missouri Black Law Students Association's Lloyd L. Gaines Scholarship Banquet; (5) Bar Association of San Francisco's Putting for the Pipeline Golf Tournament; and (6) Hispanic National Bar Association and Microsoft IP Law Institute Fellowship Program. Shook's Chair (in 2016), John Murphy, is a member of the Law School Success Working Group of the Leadership Council on Legal Diversity (LCLD) Pipeline Subcommittee. We have participated in the 1L LCLD Scholar's Program since its inception. We are part of the Success in Law School strategic committee, with a specific focus on individual and group mentoring. A number of Shook attorneys serve as mentors to diverse law students with Shook serving as "City Lead."

11 Recruitment - New Associates ALL 2L SUMMER ASSOCIATES (2016) OFFERS MADE* (2016) White/Caucasian 5 10 African-American/Black 0 1 Hispanic/Latino 2 0 Multiracial 1 0 Openly GLBT 1 0 Total 8 11 * Summer associates who received an offer of full-time employment White/Caucasian 5 10 Hispanic/Latino 2 0 Multiracial 1 0 Openly GLBT 1 0 Total 8 10 OFFERS ACCEPTED* (2016) NEITHER ACCEPTED NOR DECLINED (2016) * Summer associates who accepted an offer of full-time employment * Summer associates who neither accepted nor declined an offer of full-time employment because of postgraduate clerkship/fellowship White/Caucasian 4 7 Hispanic/Latino 2 0 Multiracial 1 0 Openly GLBT 1 0 Total 7 7 White/Caucasian 0 2 Total 0 2

12 Recruitment - Lateral Associates and Partners Shook, Hardy & Bacon L.L.P. LATERAL ASSOCIATE HIRES (2016) LATERAL OF COUNSEL HIRES (2016) White/Caucasian 7 7 Hispanic/Latino 0 1 Asian 0 1 Total 7 9 White/Caucasian 2 6 Total 2 6 LATERAL PARTNER HIRES* (2016) NEW PARTNERS PROMOTED* (2016) * Both equity and non-equity * Both equity and non-equity promoted from associate or of counsel rank White/Caucasian 3 1 Total 3 1 White/Caucasian 11 6 African-American/Black 0 1 Asian 1 0 Multiracial 0 1 Openly GLBT 1 0 Total 12 8 NEW EQUITY PARTNERS* (2016) * Whether hired laterally or promoted from within White/Caucasian 2 4 Total 2 4

13 Recruitment - Lateral Associates and Partners Shook, Hardy & Bacon L.L.P. What activities does the firm undertake to attract diverse attorneys? Partner programs with women, minority, gay/lesbian or disability-focused bar associations Participate at diversity job fairs Attend events at diversity legal organizations Seek referrals from other attorneys Utilize online job services (e.g., MCCA Job Bank) Hire recruiting professional who specializes in identifying diverse candidates Other (please specify) We have a 12-week Diversity Writing Program, a paid clerkship, where ethnically, racially diverse and LGBT second-year law students have an opportunity to develop their legal writing skills, obtain practical experience with our attorneys, and develop mentoring and networking relationships at Shook. Do you use executive recruiting/search firms to seek to identify new diversity hires (partners or associates)? No If yes, are any of these executive recruiting/search firms women and/or minority-owned? Not applicable If yes, list all women and/or minority-owned executive search/recruiting firms to which the firm paid a fee for placement services in the past 12 months: Not applicable

14 Retention and Professional Development A T T O R N E Y S W H O L E F T T H E F I R M I N ST-YEAR ASSOCIATES White/Caucasian 0 0 Total 0 0 2ND-YEAR ASSOCIATES White/Caucasian 0 1 Total 0 1 3RD-YEAR ASSOCIATES White/Caucasian 1 0 Total 1 0 4TH-YEAR ASSOCIATES White/Caucasian 1 1 Multiracial 0 1 Total 1 2 5TH-YEAR ASSOCIATES White/Caucasian 1 3 Total 1 3 6TH-YEAR ASSOCIATES White/Caucasian 2 1 Total 2 1

15 Retention and Professional Development A T T O R N E Y S W H O L E F T T H E F I R M I N TH-YEAR ASSOCIATES White/Caucasian 2 1 Hispanic/Latino 0 1 Multiracial 0 1 Total 2 3 8TH-YEAR PLUS ASSOCIATES White/Caucasian 3 0 Total 3 0 OF COUNSEL White/Caucasian 2 2 Total 2 2 NON-EQUITY PARTNERS White/Caucasian 2 1 African-American/Black 0 1 Total 2 2 EQUITY PARTNERS White/Caucasian 6 0 African-American/Black 0 1 Total 6 1

16 Retention and Professional Development Please identify the specific steps you are taking to reduce the attrition rate of diverse attorneys. Develop and/or support internal employee affinity groups (e.g., networks within the firm for minorities, women, gay/lesbian attorneys, or individuals with disabilities) Increase/review compensation relative to competition Increase/improve current work/life programs Adopt dispute resolution process Succession plan includes emphasis on diversity and greater inclusion of non-white men and women in firm leadership Work with diverse attorneys to develop career advancement plans Introduce diverse attorneys to key clients, including to lead engagements Review work assignments and hours billed to key client matters to make sure diverse attorneys, particularly non-white attorneys (i.e., minority attorneys, for whom research indicates a greater inclusion problem), are not being excluded: Strengthen mentoring program for all attorneys Professional skills development program for all attorneys Provide a gender-neutral parental leave policy that covers adoptions Other (please specify) Does your firm have part-time/flex-time policies that permit attorneys (male or female) to work alternative schedules? Yes Comments: As part of Shook's effort to assist all of our attorneys with work-life integration/flexibility and to provide a supportive environment for all who need a flexible schedule, we developed two policies/programs. First, we developed a ramp-up policy, which we call "Phase-Back," that allows attorneys returning from parental leave the option to work a reduced-hours schedule during a three-month transition period. The option is available to all primary caregiver attorneys (regardless of whether they are the birth parent or adoptive parent), with no impact on their progression toward partnership. Secondly, our Alternative Work Schedule (AWS) program allows attorneys to work reduced hours on a flexible schedule, accommodating the needs of the attorney and the firm. In conjunction with these policies, the Flex Policy Advisor educates attorneys about all aspects of our parental leave and ramp-up options. Our Flex Policy Advisor, Director of Strategic Diversity Initiatives, firm Chair, Division Managing Partners, and other firm leadership educate the firm about our flexibility programs, benefits, best practices, management, and other issues related to "Phase-Back," AWS and otherwise working flexibly. What impact, if any, will the decision to work part time have on an attorney's ability to make a partner, or if already a partner, to remain a partner at your firm? None. At Shook, an attorney's decision to work reduced hours has no impact on his or her ability to make partner, and there is no negative impact for those who are already partners and working reduced hours. We have had attorneys become partner while working reduced hours, and we have had income partners move into equity partnership while working reduced hours. How many current equity partners have worked part time, exclusive of maternity/paternity leave or short-term disability? 10

17 Retention and Professional Development PART-TIME ATTORNEYS PART-TIME ATTORNEYS TOTAL NUMBER OF ATTORNEYS (2016) Total (full and part-time) Associates Of counsel Non-equity partner Equity partner Staff attorneys are included in Of Counsel counts as provided in the survey definitions.

18 Management Demographic Profile F I R M W I D E C O M M I T T E E S EECUTIVE/MANAGEMENT COMMITTEE* HIRING COMMITTEE* * Attorneys on the Executive/Management Committee or equivalent * Attorneys on Hiring Committee or equivalent White/Caucasian 7 2 Hispanic/Latino 0 1 Openly GLBT 0 1 Total 7 3 White/Caucasian African-American/Black 1 0 Hispanic/Latino 3 0 Asian 1 2 Total PARTNER REVIEW COMMITTEE* ASSOCIATE REVIEW COMMITTEE* * Attorneys on the Partner Review Committee or equivalent * Attorneys on the Associate Review Committee or equivalent White/Caucasian 7 2 Hispanic/Latino 0 1 Openly GLBT 0 1 Total 7 3 White/Caucasian African-American/Black 0 1 Asian 0 2 Total ATTORNEYS ON THE DIVERSITY COMMITTEE OR EQUIVALENT White/Caucasian 5 3 Openly GLBT 0 1 Total 5 3

19 Management Demographic Profile O T H E R L E A D E R S H I P R O L E S Leadership positions (2016) U.S. office heads Practice group/ department leaders Committee leaders Total number of positions Number of such positions held by: Minorities GLBT attorneys attorneys who consider themselves differently abled. Therefore, our disability-related Please provide information regarding all diverse attorneys who currently head offices, practice groups and committees. Enter responses in the following format: Attorney, Office location/practice group/committee (No. of attorneys in office/practice group/committee). U.S. OFFICE HEADS How many offices does your firm have in the United States? 11 Minorities heading offices: None heading offices: Michelle Mangrum, Washington, DC (21); Tammy Webb, San Francisco, CA (25) GLBT attorneys heading offices: None Individuals with disabilities heading offices: None PRACTICE GROUP/DEPARTMENT LEADERS Minorities heading practices: None heading practices: Holly Smith, Managing Partner, Global Products Liability Group (136); Madeleine McDonough, Division Chair, Pharmaceutical/Medical Device Litigation Division (94) GLBT attorneys heading practices: Madeleine McDonough, Division Chair, Pharmaceutical/Medical Device Litigation Division (94) Individuals with disabilities heading practices: None COMMITTEE LEADERS Minorities heading committees: Jon Gray, Professional Development Committee (41) heading committees: Kristen Page, Associates Committee (35); Carrie McAtee, Search Committee (30) GLBT attorneys heading committees: None Individuals with disabilities heading committees: None

20 The Firm Says In our continuing effort to ensure we have a diverse and inclusive culture, we rely on a strategic approach with three primary fronts: (1) organizational and behavioral change (includes addressing systems, processes, and structures); (2) talent development and management; and (3) inclusive leadership development. (1) ORGANIZATIONAL AND BEHAVIORAL CHANGE It is critical that our D&I efforts not rest solely on programs, but also address systemic change that leads to the lack of diversity in law firms. Shook has grounded our diversity and inclusion efforts in the principle that we all have ownership in D&I, and therefore, in the future of the firm. Assessing Organizational Systems and Processes A key element of our strategic plan is assessing organizational systems and processes to determine where blind spots exist and what changes will bring the diversity and inclusion that we seek. Our foundational training on cultural competency and implicit bias started in In 2015, we focused on a key group of decision makers who are instrumental in implementing process and system changes., training them on implicit bias and cultural competency and on how they impact talent management and advancement. It was followed in 2016 by three two-hour deep dive sessions which addressed the following areas: evaluations and feedback, work allocation/assignments and promotions. This is a continuing process. Attendees were members of the Executive Committee, Executive Office Team, and other key leadership. Working groups from these deep dive sessions will continue to examine our processes and systems for blind spots and opportunities to bias proof in the next few years in different focus areas. "It's All About Inclusion" Campaign This firm wide initiative was launched in 2015 to emphasize that inclusion is a core competency for everyone in every position and to instill an understanding of how diversity and inclusion relate to engagement, productivity, excellent results, and the bottom line. Our focus has been to launch activities that facilitate conversations and individual engagement. We continue this campaign focusing on educating and equipping our leadership to model inclusion in all of the firm's offices and on educating our attorneys and staff on what inclusion looks like in action. A Shift from "Retention" to "Engagement and Advancement" In 2015, we shifted our focus from "retention" to "engagement and advancement." A key to achieving the goal of improving the number of minority attorneys we advance through our ranks is keeping diverse attorneys engaged and advancing in their careers. We can only do this if we are able to provide them with developmentally rich career opportunities. This change in language has had a big impact on our focus as it pushed us to ask ourselves different questions such as how to best engage, invest, equip and reward our diverse attorneys through our support and initiatives. "We Are Shook" In 2016, we continued this initiative which facilitates conversations that make shared interests and values more visible and also promotes people showing up as their authentic selves. A different question is provided each month for employees to answer visibly in their work space with text and photos, drawings, etc. We believe inclusion efforts are most successful when we get people to work and compete together across differences. It builds camaraderie, allows people to connect on commonalities and the curiosity fosters discussions and connections. The investment has been minimal and the response overwhelmingly positive. (2) TALENT DEVELOPMENT AND MANAGEMENT We continue to focus on how we can better equip our diverse talent to succeed at Shook. A focus on diversity and inclusion must be woven into every aspect of talent development. Below are some programs targeted in this area: Catalyst This quarterly program was launched in 2015 and supplements our Diversity Retreat by providing support and professional development opportunities focused on challenges minority attorneys face. Topics this year led by both internal and external speakers included building meaningful relationships, leveraging internal and external networks, personal branding, self-assessment and professional development plans, and goal setting for the upcoming year. Sponsorship Program (Shook Champions) Shook recognizes that sponsorship often happens organically but may not necessarily happen for women and other diverse attorneys. The majority of the hidden barriers that women and minorities face in law firms can be addressed through effective sponsorship. We launched this program in 2016 with an orientation and training, followed by six monthly formal group sessions around topics of business development, leadership within the firm, and trial experience and opportunities. Following these sessions is a sixmonth one-on-one pairing. Minority attorneys within two years of partner consideration are eligible to participate. Recruited to be champions are equity partners who are our top rainmakers, trial attorneys and leaders. Diversity Retreat Held every other year for ethnically/racially minority and LGBT attorneys, this retreat is designed to invigorate, empower, and position those attorneys through networking, leadership and business development, and career advancement. These retreats allow minority attorneys to focus on their career needs and individually and collectively address how they can succeed at Shook. Proactive Individual Engagement We continue to examine the needs of minority attorneys, their performance reviews, and hours. We partner with team leaders to assess any problems, understand the attorneys' needs, create a comprehensive plan for success, and continuously learn and revise our approach for the betterment of all of our talent. In addition, our Director of Strategic Diversity Initiatives and top senior leadership provide coaching and assist with strategic intervention efforts. (3) INCLUSIVE LEADERSHIP Effective change can only happen when the behavior we want to see is modeled by leaders. We engage our leaders on diversity and inclusion, expect them to have inclusion competencies, and hold them accountable for results. Part of our leadership development focus is equipping our leaders to best manage cross-cultural and diverse teams and not just standard leadership development. Shook provided seven inclusive leadership training sessions for attorneys and professional staff leadership led by renowned speakers in

21 2015 and continued the discussion with our deep dive in 2016 (as detailed in section (1). Overall, over 350 attorneys were trained on implicit bias and/or cultural competency for sessions of 90 minutes to 6 hours. Pathways to Inclusion The Pathways to Inclusion series is open to attorneys and professional staff and focuses on key D&I issues such as race, disability, religion, gender bias, generational diversity, transgender realities in the workplace, implicit bias and building successful teams. We continued this series in 2016 with three sessions: how to be inclusive to the Deaf community; a panel of experts discussing key aspects of Islam, the impact the current climate has on Muslims and our collective communities; and lastly, a nationally acclaimed author spoke on the topic of immigration. Feedback from these sessions emphasized the need for bringing these topics to the forefront and providing a forum to make these conversations possible. SOUL (Strengthening Opportunities for Unity and Learning) To supplement our traditional diversity and inclusion education programs, we encourage attorneys to find someone who is diverse from them and to seek mentoring on diversity and inclusion. We introduced this concept to encourage organic mentorship relationships; to mend the gap of understanding and empathizing with the challenges diverse talent face; and to build core inclusion competencies. We launched a formal pilot program in 2016 with an orientation, followed by the pairing of ten senior firm leadership and ten minority attorneys. Attorney Individual D&I Commitment Plan Our award-winning Individual D&I Commitment Plan (formerly known as the D&I Checklist) continues to be part of our attorneys' evaluation and compensation process. This plan serves as an accountability tool where attorneys choose how they will engage and promote diversity and inclusion. All partner commitment plans are reviewed by the Executive Committee during the compensation process. All other attorney commitment plans are reviewed and incorporated into year-end evaluations, compensation and bonus processes by the Associates Committee. Online Resources The D&I Department continues to build and maintain a rich compilation of online resources, including materials from past programming, videos, resource packets, articles, etc. The Shook library maintains a D&I collection of books, white papers and reports Engaging in Difficult Conversations We continue to work on creating a safe space for Shook lawyers and professional staff to engage in difficult conversations. This has been a gradual and ongoing process starting with initiatives such as our Pathways to Inclusion series, our trainings on implicit bias and cultural competency, our SOUL program, and others. This led to us feeling comfortable enough to respond to the tragedy at Orlando's Pulse nightclub. Shook hosted an open event for employees to come together in solidarity to celebrate the lives of the victims and deal with this public tragedy. Our firm's Chair provided opening remarks at the event. We created solidarity posters, and people continue to request and display them. Our Director of Strategic Diversity Initiatives addressed the firm's administrative team and firm leadership asking all leaders to check in with their employees and encourage dialogue.