Allen & Overy and Shearman & Sterling have agreed to operate on a modified lockstep remuneration model as part of their agreement for a proposed merger.
The two elite law firms announced their plans for an “integrated” merger on Sunday. According to people with knowledge of the agreement, the terms of the proposed compensation structure of the combined firm will adopt an elongated version of A&O’s modified lockstep model—which the firm rolled out in 2020—with higher bonus payments on top.
