DLA Piper has announced plans to redesign its pay structure, introducing a points system as the firm pivots toward a reward structure based on profits. The firm is also introducing a separate lockstep for new partners as they develop their practices. The plan garnered the support of nearly 95% of partners in offices throughout Europe, Africa, Asia, and the Middle East.
Under a new banded system, partners will be assigned points matched to a profit share. The firm is hoping to create a more standardized process that is designed to reward the best performers. Under the new system, the band extends at the top so that only the top performers can enter the highest-paid bands. The firm will also make changes to its bonus system, with the bonus pool shifting from 5% of the group’s profit to a range of 4-8%, with no maximum for star performers.
According to Legal Business, Co-chief executive Simon Levine explained: ‘The benefit of a structured points system is that it brings clarity and order to your partnership remuneration system. Rather than everyone being on their own deal… you have a set amount of bands. It’s a meritocracy but with a level of order, like in a lockstep. The difference is that you don’t automatically go up for every year you’ve been with the firm, you go up or down based on performance.’
Levine further explained: ‘We are very keen to give our new partners comfort and support as they look to build their business. It’s a massive statement from the firm, and a testament to the partnership, that we want to nurture and support our senior associates to partner and beyond. We’re trying to build a culture that makes people want to remain here for the long-term.’”