Nauta Dutilh is to radically overhaul its lockstep system in an attempt to increase significantly the compensation it can offer its top-performing partners.
Last week the partnership voted by a three-quarters majority to introduce a system by which underperforming partners can be docked equity points. The firm is expected to ratify the introduction of a bonus by the start of 2006.
The Slaughter and May best friend has until now operated a strict lockstep system. The equity ladder runs from 40-100 points over 10 years with no provision for penalising underperforming partners or rewarding stars.
Last year, a point at Nauta was worth €4,550 (£3,100). As it nears the end of its current year on 31 December it is anticipating a point to be worth in excess of €5,000 (£3,400), or €450,000 (£383,000).
Brussels head Benoît Strowel said: “We recognise the importance of having very attractive top profits for top people. We’re tackling the issue of points reductions for people who are underperforming in a number of ways in a straightforward manner.”