CMS Cameron McKenna is set to overhaul its associate career track, with lawyers at the firm informed about the changes last week (18 June).

The new system, which will take effect at the end of the current financial year, will see the firm abandon the traditional post-qualification experience (PQE) associate lockstep structure.

The top 15 City firm will instate a new three-level system, which includes the ranks of first-level and second-level associate, followed by senior associate. Progression through the bands will be based not on experience but on competency, which will be assessed through appraisals with a typical progression rate of two years in each band.

Camerons has consulted across the firm about the new system for the last nine months, having set up a subcommittee of the board to look at alternatives and discuss them with the staff forum and associate representatives.

Managing partner Duncan Weston (pictured) said: "One of the goals of our people strategy has been to review how we reward and measure the performance of our associates. Defining associate career levels according to competencies is an important step in building a culture that focuses more strongly on high performance, as opposed to hours billed."

"There are three main factors driving the move towards this: increased transparency
of what is expected at every stage of an associate's career; a clearer link between an individual's ability and contribution and his/her total remuneration; and client chargeout rates that reflect an associate's capability and not just years served."

Following the changes, the firm's pay bands will also be given a new-look structure which will come into effect in July next year. Until then, the firm's associates will continue to be paid in the PQE pay band system, with the new financial year rates yet to be set.

Camerons is also looking at making its associate bonus scheme merit-based, although those changes will not come into effect until 2012.

As reported by Legal Week, the firm is paying out its billable hours associate bonuses this year to those eligible but has not paid its budget-related firmwide bonus for the last two years after missing financial targets.

CMS Cameron McKenna on the Legal Week Wiki