Ashurst is reviewing its partner remuneration structure, which could see the firm add an extra 10 points to the top of the ladder.
The proposals would enable Ashurst to reward strong-performing partners, with plans to introduce a bonus pool for the partnership also under consideration.
The plans would take the plateau for top performers to 75 points, while the bottom of the ladder is expected to remain at 25 points.
Another proposal under consideration is to award fixed share partners a higher share of the equity.
The review follows the firm’s 19 per cent decrease in average profit per equity partner (PEP) from £747,000 to £603,000. Revenue also dropped nearly 10 per cent from £561m to £501m on a sterling basis.
A source close to Ashurst said the firm “had to do something”, alluding to the number of US firms to have circled Ashurst partners in the past few months.
Today, the firm hired Allen & Overy City partner Andrew Fraiser who will move over to New York. However, London restructuring partner Simon Baskerville is following financial regulatory head Rob Moulton over to Latham & Watkins.