Freshfields Bruckhaus Deringer is considering an update to its lockstep model that would allow a “performance-based acceleration mechanism”, according to people at the firm.

The mechanism at the London-based firm would enable high-performing junior partners to double their salary to more than £2 million within just a few years by quickly moving them up the pay ladder.

In May 2018, the firm lengthened its points scale from 17.5 to 50, to 12 to 60, with partners earning between £720,000 (12 points) and £3 million (60 points). People familiar with the matter tell Legal Week that the intended modification is designed to enable star performers to jump up the 60-point pay scale at a much faster rate than the current model allows – a response to what one former partner called ”discontent” among junior partners and a fear of further departures.

…this redesign would be one way of telling them, 'stay here, and you can still fly'

One person said the firm intends to install new acceleration mechanisms at two gates on the points-scale: the first at the 20-point gate, allowing high performers to leapfrog 10 points to 30 points; the second at the 30-point gate, where they can then jump a further 10 points to the 40-point gate, following performance reviews.

With each point currently valued at £60,000, according to someone with knowledge of Freshfields' pay scale, a 20-point partner could see their pay rise from £1 million to in excess of £2 million, and even as high as £2.4 million in the course of just a few years.

Another person said the potential change is just an option and that talks are still at an early stage, while a second person suggested the value of one point was subject to change as the new financial year gets underway.

One of the people said: “What occupies the minds of the leaders, more than anything, are those hotshot 20-pointers. They're the ones with the greatest incentive to run off to Kirkland, Latham or Milbank, their whole adult careers ahead of them, with the promise of earning ridiculous sums. So this redesign would be one way of telling them, 'stay here, and you can still fly'.” 

Adrian Maguire

Freshfields declined to comment.

Private equity star Adrian Maguire's exit earlier this year was the latest in a string of high profile departures from the magic circle firm that saw, among others, David Higgins go to Kirkland, Ward McKimm to Shearman & Sterling, Ashar Qureshi to Fried Frank, and Reza Mohtashami QC to Three Crowns.

The departures were a catalyst for action, with Legal Week in February reporting that the leadership had already started to review the remuneration model it had modified only the year previous.