Freshfields Bruckhaus Deringer is moving ahead with radical plans to ditch its much-cherished all-equity partnership model.
The magic circle firm’s partnership council approved plans to create fixed-share partners last Wednesday (24 May) and will put the proposals to a worldwide partner vote by the end of June.
According to one Freshfields source, if the move is approved the firm may introduce salaried partners in France and Germany.
Freshfields’ plan to roll out salaried partners is being driven by a desire to match the profits of Wall Street firms – a key component to Freshfields’ strategy of securing a US merger.
The review follows Freshfields’ move in February to abolish its all-equity partnership model in the Far East.
Freshfields is the only magic circle firm that still has an all-equity partnership.
Freshfields declined to comment.