Discussions are at an early stage, but partners within the firm have said it could ultimately lead to Linklaters operating an almost entirely equity-based partnership.
Managing partner Simon Davies is leading the talks, which would need to go to both a formal consultation and a partnership vote before anything is changed.
It is thought that one idea under consideration is extending the lockstep at the bottom to allow junior partners to join the lockstep earlier.
The firm currently operates a 10-year lockstep with 435 of its 520 partners already in the equity. Of these, 105 sit at the top of the equity, where they will this year earn £1.8m.
Despite significant increases in both turnover and profitability, in recent years Linklaters’ partnership size has barely changed, standing at 508 on 30 April, 2007, and 520 on the same date this year.
The firm’s German partner count has shrunk from 85 to 66 since its merger with Oppenhoff & Raedler in 2001 and earlier this year it announced it was splitting from four of its six offices in Central and
Overhauling the lockstep would help the firm integrate its German partnership as Linklaters is midway through a review that is expected to see the remuneration of German equity partners raised in line with
Davies told Legal Week: “The partnership is considering extending the availability of equity within the partnership. The firm is committed to lockstep. It will ultimately drive teamwork, cohesion and derive a consistency across the firm that will help us achieve our strategy.”
Tony Williams, founder of legal consultancy Jomati, said: “Linklaters is pretty much there anyway. The beauty of being an all-equity firm is that it is a clear badge of expectation.”