Clyde & Co modifies lockstep

Clyde & Co has changed its lockstep to include a modified structure for the first time.

The City and Guildford-based firm has introduced a merit-based element to its lockstep - the system by which partners are paid according to how long they have been with the firm. Under the new system, a share of the profits is also awarded to partners if they make an "outstanding contribution" to the firm.

The insurance specialist currently has 35 salaried and 60 equity partners. It is understood that it takes around 10 years for partners to move from bottom of the equity partner ladder to plateau, although the firm refuses to confirm this.

This year the top of equity partners will receive £385,000 while bottom lockstep is £143,000.

There is also a provision included in the lockstep that sees partners aged between 55 and 60 move down the plateau year-by-year.

Clyde & Co is the latest in a series of firms to alter its profit distribution scheme to include a merit element.

Clyde & Co declined to comment.