Debevoise & Plimpton created a new partner bonus pool as part of changes to its compensation system. The change gives firm leadership flexibility to reward top performers and retain key talent amid a competitive lateral market. The firm’s compensation model remains rooted in lockstep, but the pool allows discretionary profits to be deployed strategically outside the traditional framework. The presiding partner described the approach as a talent game, aimed at retaining and attracting talent while aligning compensation with firm strategy. The firm did not specify the exact percentage allocated to the pool, but characterized it as meaningful and useful for future flexibility.
"“It’s a talent game,” Furci ... said this week. “We will use it (the pool) to retain, but also to get talent. At the end of the day, our compensation framework needs to work in support of our strategy. And we took a hard look at that. The partnership has reaffirmed lockstep as the foundation, while adding a defined pool of profits we can deploy strategically to hold onto and attract talent.”"
"According to a new report from the American Lawyer, Debevoise & Plimpton has created a new bonus pool for partners as part of a broader modification to its compensation system, giving firm leadership more flexibility to reward top performers and retain key talent in an increasingly brutal lateral market."
"For decades, Debevoise has been one of the standard-bearers for traditional lockstep compensation in Biglaw. But pure lockstep has gotten a lot harder to defend in the era of massive lateral guarantees, and even firms whose identities have become synonymous with lockstep are being forced to adapt."
"While Furci declined to say exactly what percentage of profits would be allocated to the partner bonus pool, he described the amount as “meaningful” and said it would provide the firm with flexibility moving forward."
Read at Above the Law
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