Key facts
- Clifford Chance is introducing a new tier of non-equity 'local partners'.
- This restructuring aims to increase the firm's profitability.
- The firm has a five-year goal to nearly double profit per equity partner (PEP).
- Clifford Chance is involved in a legal dispute over compensation clawbacks from departing partners.
Clifford Chance is overhauling its partnership structure by formalizing a non-equity 'local partner' tier. This strategic move is intended to enhance the firm's profitability, with management aiming to nearly double profit per equity partner (PEP) over the next five years. The firm is also preparing to announce a new cohort of local partners across its global offices. This initiative comes as pay disputes between law firms and outgoing partners, particularly concerning compensation clawbacks, are becoming more common and legally controversial. Clifford Chance is currently facing a lawsuit related to its clawback rules, a policy that some argue is legally unenforceable.