Few subjects get tongues wagging in the legal market as much as pay. And this was certainly true when, in mid-2011, Freshfields Bruckhaus Deringer voted to break away from its traditional lockstep model in Asia. 

With three years having passed since the decision was voted through, the possibility of a pay review looms for those Asian partners placed on sweetened deals. The three-year packages were understood to have given roughly two partners a guaranteed 30% top-up, over and above what they were due under a pure lockstep system. 

The question now is whether Freshfields can justify these inflated salaries in the long term given its historical attachment to lockstep, and, if so, how might they be sustainable?

"For a very conservative firm like Freshfields, it's hard to see a break from lockstep for long," says one ex-partner. "There was a real concern [during the vote] that the practice would crumble. They wanted to make sure people didn't leave because of remuneration. But is that pressure there now?"

Perhaps not. For many firms the fear that they might lose top talent to US rivals has been somewhat alleviated now most of the leading American firms have already established local Hong Kong practices. The drop-off in Hong Kong initial public offering (IPO) work has also made it harder to justify enhanced pay packages. 

Other former Freshfields insiders suggest that the 2011 move was a knee-jerk reaction to the departure of a few senior individuals, and say it was a temporary move. Lockstep, the argument runs, is vital to maintaining the firm's cohesive culture. 

"I think if you look at the market now, US firms have calmed down," says another ex-partner. "Recruiting has subsided. And if you look at the Hong Kong office, it is doing well but certainly faces a lot of challenges. If I had to put a bet on it I would say [the pay deal] won't continue."

Given one of the perceived reasons to break lockstep in Hong Kong was to help retention, the high turnover of Freshfields partners there and in mainland China is notable, with three exiting the firm this year already. Of the 22 China partners at Freshfields in 2009, 11 have left, three have relocated to other offices and two have returned to the offices they were seconded from. Five years on, just six remain part of the current 22-partner practice.

This compares with 10 out of 28 partners who have left Allen & Overy during the same period and three out of 22 at Linklaters. 

"It is tough at Freshfields," explains one former partner. "The Hong Kong office continues to focus on IPOs and that has been a difficult area for anyone in that market. It is not as easy an environment to work in as before. People don't get promoted as quickly, and partners are not able to see as early on in the year that the budget will be achieved so there is much more pressure." 

Despite that pressure on the bottom line, some still feel the flexible payment structure in Asia could be maintained. The need for continued adaptability in the Asian market was evidenced by Slaughter and May in January, when the firm broke with its tradition of exclusive organic growth by recruiting John Moore, Morrison & Foerster's top capital markets partner in Hong Kong.

"In Asia it is not unfeasible because the market is less mature than home markets," another partner says. "The shortage of talent combined with the lack of institutional relationships; the profitability of mandates and inconsistency of pricing – all of that results in a more flexible situation." 

He adds: "But if the market calls for flexibility upwards you should also have the same flexibility [for people to move] downwards."

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Freshfields' Greater China partner departures 2014

• Michael Han, China antitrust head, Beijing – Fangda
• Mark Parsons, Asia IP head, Hong Kong – Hogan Lovells
• Howard Lam, corporate, Hong Kong – Latham & Watkins