Lockstep Pay on Its Last Limbs After ‘Historic’ Cravath Move (1)

An industry that once attributed many of its best qualities to its dedication to pay partners based on seniority is down to just two strict adherents to the so-called “lockstep” compensation system after Cravath, Swaine & Moore adjusted its model on Monday to fend off poaching.

While firms keep compensation information close to the vest, Wachtell, Lipton Rosen & Katz and Debevoise & Plimpton are believed to be the two last-standing U.S. firms paying partners strictly based on their tenure. Even firms that make “adjustments” to their lockstep models rarely share the specifics. But what’s clear is that the near-standard ...