Ashurst lengthens road to lockstep after PEP fall

Ashurst has mooted extending the length of time it takes for junior ­equity partners to gain ­senior ­status, dropping the value of an equity point by
a third.

Junior equity partners receive a small number of equity points, which are determined on a case-by-case basis, as well as a salary until they progress into the firm’s nine-year equity ­lockstep.

Until now the majority of the firm’s junior partners have taken two years to enter the lockstep, with their number of equity points remaining unchanged ­during that time.

A memo sent to the firm has suggested that most ­junior partners will now take three years to reach the firm’s lockstep, which runs from 25 to 65 points.
After the firm’s average ­profit per equity partner (PEP) figure dropped by 35 per cent in the 2008-09 financial year, the value of an equity point has fallen from just over £22,000 at the 2007-08 financial year-end to around £14,250.

Ashurst managing ­partner Simon Bromwich said: “We’ve seen a move towards three years, but partners can still reach [the lockstep] in less.

“This is for a number of reasons, ­including having a higher number of partners at the junior level.”