What Is a White Shoe Firm?

An archaic word for the most distinguished, long-standing enterprises and corporations in elite professions is “white shoe firm.” Initially limited to legal practices (a popular form was “white-shoe law firm”), the word is often used to refer to procedures in other industries, such as management consulting and investment banking.

White-shoe companies usually have a long history in the industry—ideally, a century or more—and a prestigious clientele they have amassed for generations. Despite being leaders in their profession, they are often situated on the East Coast and occupy large premises at upscale locations. They are also known to be conventional and conservative.

Understanding

It is said that the name “white shoe firm” originally referred to a preppy kind of shoe called white buck shoes, most especially oxfords. Introduced in 1910, light-colored buck oxfords gained popularity among male fashionistas of the century and at Princeton University, which was widely recognized as the home of the nation’s best-dressed students. Golfers and tennis players also started using versions with rubber soles.

During the 1950s, Yale University and other Ivy League schools adopted the white buck (or suede) version of the Oxford as the “in” shoe. With the help of advertising, this trend spread to other universities. According to a 1950s advertisement, “The Ivy Buck—for upper-class comfort on campus.”

Between their allure at elite universities, their link to aristocratic athletics, and their unmaintainable white hue (particularly when it comes to suede), the white shoe eventually came to represent the disposable elegance of the elite and, eventually, the nobility themselves: old money types whose jobs wouldn’t muddy or scuff their shoes.

Therefore, these “white-shoe men” make up the majority of “white-shoe firms” (although more and more women are joining them as well). William Safire, a writer for the New York Times, claimed to be able to “track it back in print to the mid-’70s,” citing pieces from Business Week and Forbes.

Most white-shoe legal firms were first located in New York City. Still, other storied Northeastern cities like Boston or Philadelphia and a few southern towns like Charleston or Washington, D.C., were also suitable locations.

The phrase is still used to describe prestigious American businesses, including Ernst & Young in accounting, McKinsey & Company in management consulting, Goldman Sachs and JPMorgan Chase & Co. in banking, and Cravath, Swaine & Moore LLP and Shearman & Sterling in law. It has even spread to represent exclusive businesses abroad.

Adverse Implications of a White Shoe Company

Even though it refers to a reputable, well-established business, the phrase “white shoe firm” had a bad connotation; there were others who believed that white-shoe companies were just for the elite WASPs on the East Coast and that everyone else was not eligible to apply. The workers at these companies were as white as the shoes they wore to their country clubs on the weekends, many of which did not allow Catholics, Jews, or persons of color.

Director of the Hudson Institute’s economic policy studies group and Sunday Times of London columnist Irwin M. Stelzer recalled how, in the early 1960s, he and his partner in a young financial consulting firm didn’t even bother pursuing business among the white-shoe firms.

Stelzer pointed out that “the “white-shoe” firms were off-limits” because he and his partner were Jewish. To identify them, we added all of the Roman numbers after the partners’ names (I, II, III, etc.), added partners whose first and last names could be interchanged, and divided the total number of partners. A high score indicated we were out of the running.”

Aside from prejudice, Safire noted that the phrase “white shoe firm” may also be used as “a passionate derogation of old-fogeyism,” signifying a setting where prudence and conservatism are valued, often to the disadvantage of the situation. “First, Boston had let its white-shoe image and big-name client list go to its head,” the Business Week citation said. They just sat about.”

Modern White Shoe Companies

These days, a long-standing corporation that is a leader in its industry and has a substantial physical footprint might be considered a white-shoe firm. The phrase suggests longevity, stability, and quality. White-shoe businesses are to business what blue-chip corporations are to stocks.

Examples of Modern White Shoe Companies

Several modern white-shoe companies that Market Business News has recognized are:

Accounting/Advisory

• Ernst & Young Deloitte KPMG PricewaterhouseCoopers Legal
• Gordon Cahill & Reindel
• Hamilton, Cleary, Gottlieb, Steen, &

Legal

• Cahill Gordon & Reindel
• Cleary, Gottlieb, Steen and Hamilton
• Fried, Frank, Harris, Shriver, & Jacobson
• Greenberg Traurig
• Jones Day
• Kramer Levin Naftalis & Frankel
• O’Melveny & Myers
• Paul, Weiss, Rifkind, Wharton, and Garrison
• Proskauer Rose
• Quinn Emanuel Urquhart & Sullivan
• Skadden, Arps, Slate, Meagher, and Flom
• Wachtell, Lipton, Rosen, & Katz
• Weil, Gotshal and Manges

Banking

• Goldman Sachs
• Lazard Ltd
• UBS
• Deutsche Bank
• William Blair & Company

Unstable White Shoe Companies

However, even well-known companies may experience internal difficulties, commercial disruptions, and economic downturns.

While white-shoe American businesses in comparatively stable fields like law and management consulting have prospered, companies in the financial sector have found it difficult to stay independent in the face of significant challenges and changes.

Several white-shoe investment banking and financial services companies were wiped out in the 2008 global economic crisis. Lehman Brothers, the fourth-biggest investment bank in the United States when it was formed in 1844 and forced to file for bankruptcy because of losses on mortgage-related instruments totaling more than $600 billion, was one well-known casualty.

Part of Lehman’s issues stemmed from its holdings in funds managed by Bear Stearns. Even though it was founded in 1923, it was still one of the nation’s top investment banks until its use of leverage and participation in collateralized debt obligations (CDOs) resulted in enormous losses. After being split up and sold to JPMorgan Chase, which was formed by the union of two white-shoe companies, Chase Manhattan Corporation and J.P. Morgan & Co., Bear Stearns was also sold off.

Following the financial crisis, Bank of America purchased Merrill Lynch, another illustrious brokerage firm.

Many white-shoe companies have closed their doors or been bought by larger competitors. For most of the 20th century, for instance, the Big Eight firms that managed the books of Fortune 500 businesses were well-known in the U.S. accounting community. These days, they talk about the Big Four. Closures and mergers have reduced the ranks. For example, in 1998, Price Waterhouse (established in 1894) merged with Coopers & Lybrand (established in 1854) to become Price Waterhouse Coopers.

FAQs for White Shoe Firm

A Silk Stocking Law Firm: What Is It?

A silk-stocking legal firm might have hundreds of lawyers working for it, often in a big city. It usually charges exorbitant rates, catering to a well-to-do or “silk stocking” clientele. While it pays high wages, it also requires staff members—many of whom are top law school graduates—to put in a lot of billable hours. It is comparable to a white-shoe legal practice but maybe not as venerable or well-established.

How Do I Enter a White Shoe Company?

There was a time when the response would have been to be a white male Anglo-Saxon Protestant (WASP), ideally from the Northeast, with an Ivy League degree. Today’s white-shoe companies strive to be even more diversified than a few years ago.

But they have the right to expect the best candidates since they are prominent figures in their field. Good marks from a top school are thus crucial for entry-level employment. Significant relevant experience is necessary for higher-level roles, particularly in a company of comparable size.

While qualifications and experience are necessary for admission, connections by themselves won’t get you in; it never hurts to know someone or know someone who knows someone who can suggest you.

Is the pay at White Shoe Companies good?

While people may assume that working for a prestigious company would increase their earnings, most white-shoe companies pay well—real money. However, they also place high expectations on staff members, dictating strict deadlines and lengthy workweeks.

Conclusion

• “White shoe firm” is an archaic word for the most esteemed, long-standing corporations and enterprises.
• White-shoe companies focus on specific industries like banking, finance, and legal.
• Additionally, white-shoe companies have been linked to Ivy League and WASP exclusivity as well as a cautious, conservative business model.
• The men’s shoe known as “white buck oxfords,” which were quite popular among Ivy League students in the 1950s, is where the phrase “white shoe” originated. In the 1970s, the phrase “white shoe firm” first appeared.
• Many white-shoe companies have closed their doors or been bought by larger competitors.