Dewey & LeBoeuf has overhauled its compensation system, cutting pay for more than 60 partners across the firm.

Up to 66 partners at the US firm have had their compensation reduced, in a number of cases by around 80 per cent. The cuts have left certain Dewey partners taking home around $10,000 in monthly draws, or $120,000 a year.

In an internal memo sent to all Dewey partners today, chairman Steve Davis defended the amended compensation, claiming that the merit-based remuneration was not based solely on revenue generation but incorporated a range of factors to measure contribution to the firm.

The move is thought to be a part of Dewey’s firm-wide strategy to improve performance within its partnership ranks.

Last year The Lawyer reported that Dewey had put monthly partner distributions on hold while the firm attempted to build up a substantial cash cushion to protect it against the economic downturn (3 Nov 2009).

Dewey has also embarked on a number of cost reduction measures during the downturn including five office closures across the US and a redundancy consultation in the UK.