It’s no secret that Lovells’ PEP has lagged behind that of its top 10 peers for several years, with the firm losing a number of star partners because of this. As we reveal today, that will all change if the firm’s merger with Hogan & Hartson goes ahead, with high-flying partners set to receive a performance-based bonus for the first time (see story).
As we revealed last month, Lovells was willing to ditch its lockstep in a bid to push the deal through (see story).
Merger papers, which were distributed to partners at both firms at the beginning of this month, have revealed that the merged firm will adopt Hogan’s remuneration policy, with 85 per cent of a partner’s pay packet coming from points that accumulate from the point of making equity partner while the rest is directly linked to performance.
The uptick has the potential to be phenomenal and the divide between the deal’s supporters and detractors will be telling.
Should associate lockstep be binned? Norton Rose and Pinsent Masons think so. Others are not so sure. Clifford Chance partners will be forced to get cuddly; and more on what Ashurst’s US strategy means.