Lovells is embarking on another shake-up of its remuneration structure as it moves to compress the firm’s lockstep and increase the number of points available to new equity partners.
The Lovells lockstep currently runs from 24 points to 60, with an increase of three points every year over 12 years. At a partnership meeting in London on Thursday night (30 March), senior partner John Young proposed that the entry level of points increase to 30. He also proposed introducing more flexibility at the top end of the lockstep.
Young told The Lawyer: “We need to be in a position to help manage the careers of partners at both ends of the equity ladder. The recent lockstep review gave us the power to freeze or reduce points. We’re looking at this to ensure that we treat our younger partners more fairly, to attract senior level lateral hires and to reward existing high performers.”
Young denied that it was a defensive measure in the wake of high-profile departures, such as the private equity team to Weil Gotshal & Manges. He said: “This process has not been directly driven by that; more by a recognition that we require the same flexibility as some of our competitors.”