Dewey & LeBoeuf is set to defer a portion of its partners' compensation for as long as 10 years, it has emerged, as the US law firm moves to stabilise its business.

The firm's newly created five-member executive body is in the process of finalising what is internally referred to as a "financial incentives plan" for partners, that will see a portion of their pay deferred.

Partners will see their full compensation paid out after a period of as long as 10 years, with the top 50 US firm also withholding partner bonuses for a shorter period.

The incentive plan is seen as a response to strains on the 1,000-lawyer firm's finances that were partly caused by a number of pay guarantees handed out to star partners. The level of compensation that is being deferred is seen as a means of retaining partners.

One partner told Legal Week: "This is not a lock-in in the UK sense where partners are actually unable to leave, it is a system that creates financial incentives for partners to stay with the firm in the long term. It will also mean that a portion of the partners' pay will be held by the firm."

Dewey has already seen 47 partner departures since January – only some of which were either pushed by the firm directly or left after seeing their pay reduced.

The firm is also currently in negotiations with its bankers over some of its loan agreements, which the glut of partner departures has brought it closer to breaching. The firm has a $100m (£63m) revolving credit facility and a $125m (£83m) bond, which was issued in 2010.

Meanwhile, the creation this month of the new office of the chairman saw current head Steven Davis joined by restructuring chief Martin Bienenstock, corporate head Rich Shutran, litigation head Jeffrey Kessler and public policy and Washington head Charles Landgraf in a major overhaul of management.