CMS Cameron McKenna has reformed its partnership remuneration model from 1 May, enabling salaried partners to become equity partners more quickly but increasing management scrutiny of performance.
After 18 months of deliberation, the firm voted in favour of discontinuing its salaried partner level, achieving the 80% majority needed to push the reforms through.
The change will see 65 salaried partners become part of a 75-strong fixed-share rank.
Additionally, the time it takes to become an equity partner will be reduced by one year to enable a quicker progression through the lockstep.
Under the old system, new partners spent three years at salaried level before progressing to a fixed-share ‘equity gateway’ tier for at least two more years before becoming full-equity partners. The new system will see new partners having a fixed-share of the equity for at least four years before moving on to full-equity status.
According to senior partner Dick Tyler, the new structure means partners have more clarity. ‘We wanted to be sure that the partner model is comprised of not just how you share equity in the lockstep model but how you manage, measure, support and reward performance,’ he said. ‘So we were looking holistically at what we wanted to achieve strategically.’
The lockstep will continue to operate from 28 points to a 70-point ceiling, while there has been an increase in each step so partners will move up the ladder by six points a year. Partners will have their performance reviewed every three years, giving the firm the option to hold partners at a certain step.