Hogan Lovells moves toward merit-based system across the board
Hogan Lovells is preparing for a full review of partner compensation as it moves toward integrating the pay structures of the merged firms Lovells and Hogan & Hartson.
The firm’s remuneration committee – comprising co-chairs John Young and Claudette Christian, as well as litigation co-head Craig Hoover and Hamburg corporate partner Andreas Meyer – has been set the task of determining new profit-sharing unit range on a merit-based system for the combined firm, and each individual partner’s position on the scale.
The new system will end the lockstep system at legacy firm Lovells, and is expected to result in a 3:1 gap between the top and bottom of the core equity. This compares with a ratio of 2:1 at legacy Lovells and more than 15:1 at legacy Hogan, including bonuses. Up to 20% of partners are expected to be “outliers”, receiving more or less than the core unit range.”