Slaughter and May has kicked off a review of the way it appraises its associates, after the firm opted to move away from performance-based pay earlier this year.

The firm is currently consulting with partners and associates on potential changes to its current appraisal system, in conjunction with external consultants.

Options under consideration include dropping annual appraisals, as well as a rethink of how associates are rated.

At the start of the year Slaughters implemented a wide-ranging overhaul of pay and benefits following a staff consultation in collaboration with Willis Towers Watson.

The firm's associate lockstep pay structure, which previously included a small element of performance grading, now mirrors the flat lockstep structure of the firm's partnership.

Senior partner Steve Cooke said the decision "clearly differentiates" the firm from its competitors, many of which operate merit-based pay bands for associates rather than a strict lockstep.

At the same time, pay for newly qualified lawyers was increased by 9% to £78,000, while lawyers with one year's post-qualification experience (PQE) saw pay hiked by 10% to £87,000. 2PQE pay went up 9% to £98,500, while 3PQE salaries rose by 8% to £108,000.

The firm also introduced a raft of new benefits for associates, including 30 days' annual paid holiday, a four-week paid sabbatical for associates when they reach three years' PQE, and the opportunity for all associates to work from home one day a week.

In recent months, a number of other leading firms have unveiled significant changes to the way they assess performance, with Linklaters set to drop both individual financial targets and annual performance reviews for partners, and Allen & Overy and Hogan Lovells both moving away from formal annual assessments in favour of ongoing – or 'continuous' – feedback.