Linklaters alliance partners 'thrash out' pay arrangements

Linklaters is planning to modify its lockstep system throughout Europe as part of its various merger deals with its alliance partners.

It emerged at the conference that Linklaters is negotiating different pay deals with each of its alliance firms.

The European alliance firms De Bandt Van Hecke Lagae & Loesch in Belgium and Luxembourg, De Brauw Blackstone Westbroek in the Netherlands, and Lagerlf & Leman in Sweden are 'thrashing out' pay arrangements with the City giant as it prepares to swallow Oppenhoff & Rdler, the German alliance firm, on 1 January.

Oppehoffs is coming into Linklaters' lockstep with differentials, said a Linklaters spokeswoman.

'That's one of the things we're thrashing out at the moment.

What's right for Oppenhoffs may not be right for De Bandts or De Brauws.'

It has now emerged that Linklaters' Belgian and Luxembourg alliance partners at De Bandt are planning to accept lower pay than their London partners on merger.

Roel Nieudorp, De Bandt's corporate managing partner, told delegates at an IBA session on globalisation: 'I know it is controversial, but I would be perfectly willing to live with differences...

We don't even want to go to the London level.'

The idea of having different profit sharing arrangements within one partnership was slammed by Allen & Overy partner Johan Kleyn, who also spoke at the globalisation seminar: 'That simply is unacceptable...

I think that lockstep all the way through for all the firm is the only way.

It's definitely the death of partnership as far as I'm concerned.'

Anne Mizzi