Lovells is to close the door on its controversial lockstep review with the firm deciding against changes to the top end of its lockstep.
Senior partner John Young told partners today (9 February) that the firm will not be making radical changes to its lockstep, despite a protracted review lasting nearly a year.
The decision by the partnership council follows months of consultations in local offices as well as a firmwide survey of the partnership carried out at the end of January.
The most significant issue under discussion was whether to increase flexibility at the top of the lockstep with either an additional band of points above the current 60-point plateau or bonus points.
The council decided against such a move and ruled out a controversial proposal that would have made it possible to pay partners in the US outside the current lockstep in exceptional circumstances.
However the firm hopes to bring in two changes – a one-off points increase for laterals if there has been a particularly strong performance and, more significantly, a change to the entry level for junior partners. Partners will vote on the changes in the spring.
Partners will enter the equity on 30 points rather than 24 - reducing the lockstep to 10 years assuming a three-point increase each year. Partners who have come in on less than 30 points over the last 6 years will also see their points adjusted to correspond.
Young told Legal Week: “We are going to keep the status quo. The exercise has shown the strength of feeling people have in the existing lockstep system and there was not a will to change things. We will now close the door on this and will not reopen it for some time.”
Lovells held its original lockstep review in 2004-05 but last year announced a second consultation in the wake of a stream of big name partner departures including Marco Compagnoni and Derek Baird to Weil Gotshal & Manges and Allen & Overy respectively.
Young added: “Our last lockstep review was in 2004-05 but this study was more in depth. It was clear that we did not have the support to bring in the changes [at the top end] but those at the bottom end should not be underestimated. It is a very significant change for junior partners and I think overdue.”
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