Erin Murphy of Latham & Watkins and Rachel Kleinberg of Sidley Austin.

Latham & Watkins and Sidley Austin both announced lateral hires from other Am Law 50 firms in northern California on Monday, in an effort to shore up their transactional practices despite impending pressures on the greater economy.

Simpson Thacher & Bartlett senior counsel Erin Murphy has joined Latham & Watkins as a partner in Menlo Park in the firm's benefits, compensation and employment practice, which is part of the firm's tax department. And on April 27, Davis Polk & Wardwell partner Rachel Kleinberg is set to join Sidley Austin's Palo Alto office as a partner in the global tax group.

Neither Murphy nor Kleinberg could immediately be reached for comment.

Tad Freese, office managing partner for Latham & Watkins in the Silicon Valley, said the firm needed a compensation lawyer with Murphy's skills in Menlo Park, because of the deal volume in the Bay Area. He noted that she has worked on national and global matters in various industries.

Latham is hiring, despite economic pressures imposed by the new coronavirus, because the firm is "incredibly busy" in the Bay Area, he said.

"The timing was just right. We were interested. She was interested," Freese said.

In a press release, Bradd Williamson, global chair of Latham's benefits, compensation and employment practice, said Murphy has worked on "nearly every type of benefits and compensation matter that can arise in the context of a sophisticated corporate transaction."

Murphy represents acquirers in private equity transactions and leveraged buyouts, public and and private companies in mergers and acquisitions, and companies in takeovers, sales and spinoffs. She also counsels companies on executive compensation.

Murphy, in the press release, said Latham's culture and global platform are a great hit for her and her clients.

Kleinberg, the new Sidley tax partner, advises corporate, private equity and financial institution  clients on M&A, joint ventures, spinoffs and reorganizations, cross-border restructurings, capital market transactions, credit facilities, international tax matters and derivatives transactions. She is also chair of the Foreign Activities U.S. Taxpayers Committee of the American Bar Association's Section of Taxation.

Laura Barzilai, head of Sidley's global tax group, said Kleinberg brings "vast technical know-how" and experience in a range of complex tax matters.

"She's an M&A, private equity lawyer, but also equally comfortable in capital markets," she said.

Barzilai said the firm's West Coast transactional practice has grown significantly over the last five years, and the firm needed to add to the tax team in California. The firm has two tax partners and two tax associates in Los Angeles.

Kleinberg's lateral move is Sidley's second significant hire this week. The firm brought on Joshua Thompson in New York, who had been the head of Shearman & Sterling's leveraged finance group, at a time when the COVID-19 pandemic has shaken up the market for buyouts and fueled demand for veterans in the practice.

A spokeswoman for Davis Polk said in a statement that the firm wishes Kleinberg the best. Simpson Thacher did not immediately provide a comment on Murphy's departure.

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