It would be tempting to view the news that Linklaters looks set to finally modify its lockstep as yet another nail in the coffin of the historic—and some would say outdated—compensation system. That would be wrong.
Linklaters and the other elite U.K. firms have spent more than a decade cautiously tinkering with their locksteps in an attempt to wrangle some much-needed flexibility out of an inherently inflexible system. In a pure lockstep, equity partners are paid on the basis of seniority, with their remuneration rising each year as they move up the “ladder.” This structure was traditionally used by the majority of U.K. firms and a smattering of top American practices—mostly those based on Wall Street—but has seen its popularity diminish over time as firms moved toward more nuanced, merit-based pay schemes.
