Suzi Ring and Arash Massoudi report that Freshfields LLP has forced out partners and downgraded equity shares after a major pay shake‑up. The UK‑based magic‑circle firm culled equity partners in London, Germany and Paris following a 2025 overhaul that shifted from a tenure‑based lockstep to a performance‑based system. Under the old model partners could hold up to 100 points, each worth about £70,000, but the new structure reduces points for many of the roughly 500 partners.

The changes aim to give Freshfields flexibility to boost pay for hiring and retaining top lawyers, especially as it pushes growth in the US. Rival firms say Freshfields lawyers have approached them for jobs, some unsettled by the cuts. The firm also introduced a non‑equity tier for the first time, mirroring a trend among US firms. Freshfields stopped voluntarily reporting its profit per equity partner, previously £2.09 mn, estimated at $2.9 mn in 2024. The firm declined comment on the partner exits.