Cravath Ditches Seniority-Only Partner Compensation Model

Cravath Swaine & Moore will end its seniority-based partner compensation approach in favor of a new model that also takes performance into account.

“This decision will advance our strategic objectives,” Cravath presiding partner Faiza Saeed said in a statement emailed to Bloomberg Law.

The new model, called a modified lockstep system, allows firms to compensate partners based on performance, in addition to seniority. The goal is give firms a competitive advantage compared to rivals who compensate strictly based on seniority.

Cravath’s decision aligns it with several other Big Law firms that have switched to modified lockstep compensation structures in recent ...