O’Melveny & Myers is in talks to bring its remuneration structure for London partners into line with the rest of the firm.
The move comes amid two senior City partner departures from the office and talk of pay disputes between the firm and the outgoing partners.
As reported by Legal Week last week (25 April), London co-head Chris Ashworth is set to join Lovells as head of corporate finance, while finance partner Stuart Hills has quit to join Weil Gotshal & Manges in London.
London co-head John Daghlian denied any disputes with the outgoing partners. However, he confirmed that O’Melveny is planning to change the remuneration structure for London partners, who have been paid under a different system since the office launched.
It is understood London partners are primarily paid their share of the profits in advance, based on projected earnings, so if a partner leaves mid-way through a financial year they are liable to pay back money they have already received. The US system works on the basis that a partner is paid their agreed monthly draw with profits paid out in arrears.
Daghlian said: “We are aligning the way in which London partners are paid with the rest of the firm.”
Daghlian is expected to stay in sole charge of the London office for the time being.