CC chiefs win backing for lockstep revolution

The Clifford Chance partnership has voted for the changes to its compensation structure which will see a fragmentation of its worldwide lockstep for the first time.

From the next financial year, the magic circle firm will be able to operate three distinct systems of remuneration, subject to ratification by the management committee.

The results were announced this afternoon (16th December) and all three resolutions attained the requisite two-thirds majority.

A CC source told The Lawyer: “It’s a departure, but it’s not eat what you kill.”

As revealed by The Lawyer last month, the three proposals were split into separate ballots last month.

The first vote was on ladder one, which is the reduced points allocation for economically weaker jurisictions. The second vote was to formalise the partnership appraisal process. This has been dubbed MYC or ‘maximising your contribution’ and will be put onto a yearly basis.

The third and most controversial vote was on ladder three, the proposal introducing extra profit units of particular offices. It is thought that the Clifford Chance’s American operations will apply to adopt ladder three next year in order to reflect economic norms in the US.

Managing partner Peter Cornell first called for more flexibility in the lockstep at the firm’s partnership retreat in February.

The vote on the position of non-equity partners will now take place early next year.