Elite Wall Street Firm Davis Polk Moves to Modified Lockstep Pay

Davis Polk & Wardwell, one of the oldest and most respected firms in the country, is moving to a modified lockstep compensation structure for its partners as it looks to grow in an increasingly competitive legal market.

Prior to the firm’s decision, which was announced to the firm Thursday, Davis Polk operated under a strict-lockstep model, which compensates partners based on seniority. The shift to this new structure will allow the firm the flexibility to pay more competitive salaries for talent, both internally and when the firm is looking to hire from the outside.

“The firm is strategically focused on ...