CC cuts partner council and brings in measures to handle poor performers

CC considers move to make it easier to exit problem partners

Clifford Chance (CC) is set to make exiting underperforming partners easier for management as part of its plans to amend its governance structure.

The proposed change to the partnership deed would see management removing partners' right to protest a termination notice through a vote of the partnership, giving the 17-member management committee, led by managing partner David Childs, the final say.

As it stands, partners asked to leave following a poor performance review and a warning period can dispute management's decision by taking it to a vote of the partnership.CC is also proposing to shorten the warning period for under-performers from 12 months to between nine and 12 months.

As part of the same drive to improve partner performance, CC is planning to tighten its partner appraisal system by formalising an annual review process that will see partners across all offices appraised on the same criteria, including billing and business levels.

In March last year CC's management secured a vote from the partnership granting it temporary powers to override the partnership deed in order to cut its partner headcount as part of its restructuring. However, the powers, which were capped at a 15% reduction in global partner headcount, came to an end in July.

The governance change forms part of a number of proposals circulated to the partnership earlier this month by management. Other proposals already reported by Legal Week include the establishment of a nomination committee for practice group head and regional management elections.

CC began discussing changes to its governance in September with a number of amendments considered, including the possibility of cutting down the size of the management team. The firm has since decided to retain its current management structure.

However, the firm is proposing to cut down the number of seats on its partnership council from 12 to seven, with members elected by the global partnership rather than regionally. The firm is also proposing that no two members from the same geographical region sit on the council, which is currently headed by senior partner Stuart Popham.

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