Two major international law firms are implementing significant changes to their partner remuneration structures as they advance toward a potentially industry-altering combination. Ashurst, the UK-based legal giant, and Perkins Coie, its US counterpart, are overhauling how they reward their top lawyers while finalising merger details that could create a formidable global practice.
The Compensation Restructure
Ashurst has confirmed it will transition from its existing lockstep system to a new merit-based compensation model for partners. This fundamental shift represents one of the most substantial changes to the firm's internal structure in recent years. The new approach will evaluate partners based on multiple performance metrics rather than seniority alone.
Meanwhile, Perkins Coie is simultaneously reviewing its own partner compensation framework. The US firm is considering adjustments to its current system, which already incorporates merit-based elements alongside modified lockstep components. Both firms are aligning their financial structures ahead of the proposed merger, scheduled to take effect from November 1st this year.
Merger Timeline and Strategic Rationale
The combination between these legal powerhouses is progressing through a carefully structured timeline. The firms announced their merger plans in June, with the integration process now well underway. This transatlantic union will create a legal entity with approximately 1,700 lawyers across 31 offices worldwide, significantly expanding both firms' global footprint.
Financial details reveal that Ashurst reported revenues reaching £673 million during the last fiscal year, while Perkins Coie achieved gross revenues of $1.66 billion. The merger represents a strategic response to increasing client demand for seamless cross-border legal services, particularly in sectors including technology, financial services, and energy.
Industry Implications and Future Outlook
This compensation overhaul occurring alongside merger negotiations signals a broader trend within the legal sector. Law firms are increasingly moving away from traditional lockstep models toward performance-based remuneration systems that better reflect individual contribution and market realities.
The Ashurst-Perkins Coie combination represents one of the most significant transatlantic legal mergers in recent memory. It follows other notable combinations such as that between Hogan Lovells and Shearman & Sterling, indicating continued consolidation within the global legal market. Industry analysts suggest that successful integration of compensation structures will be crucial for retaining top talent and ensuring a smooth transition.
Both firms have established integration committees to manage the complex process of combining operations, cultures, and now compensation systems. The partner pay overhauls demonstrate the firms' commitment to creating a unified structure that rewards performance while maintaining internal equity across different jurisdictions and practice areas.
