Paying Lawyers - The London Lockstep Just Got Harder

Recent reports show that European law firms are changing they way partners are paid - making remuneration more performance-based rather than the 'lockstep' system based on legnth of service. The trend is moving away fast from lockstep with more firms basing profit distribution on performance or, at least, on a combination of the two.

The survey, conducted by BDO Stoy Hayward's professional services practice, shows that the proportion of European firms that maintain a pure lockstep model fell from 42 per cent in 2005 to just 25 per cent this year. Further, the 'halfway house' part-merit, part-lockstep also fell sharply, from 36 per cent in 2005 to just 15 per cent today.

All of which is good news for young lawyers and even better for young lawyers motivated by performance-based remuneration - and show me an ambitious lawyer who isn't. The
continued surge in mergers and acquisitions activity and a sharp increase in the ratio of lawyers to partners boosted average profits at European firms by 15 per cent last year. The need to keep them - and increase their numbers - has made the move from the lockstep model an inevitability.