Tods Murray is gearing up for the election of its first remuneration committee in the autumn as part of the Scottish firm’s ongoing overhaul of its lockstep system.
Until this financial year Tods Murray had operated a pure lockstep which ran over five years. The majority of the firm’s equity partners are believed to be at or near the top of the ladder.
Now, in an effort to reduce the overall age profile of the partnership and increase its ability to hire younger lawyers, the firm has introduced a performance threshold into the lockstep at year three.
According to managing partner Peter Misslebrook, the firm “will now be actively managing the appointment and remuneration of equity partners more accurately”.
Under the new system a partner’s equity share can be adjusted up or down, depending on the remuneration committee’s assessment. Partners will be assessed on a rolling two-year period on a range of issues, including chargeable hours, work generation and mentoring.
Tods Murray also introduced a system of formal partner reviews for the first time last year.