{"id":45654,"date":"2015-11-10t05:00:00","date_gmt":"2015-11-10t10:00:00","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=45654"},"modified":"2022-12-22t00:36:36","modified_gmt":"2022-12-22t05:36:36","slug":"hazards-not-reallocating-equity","status":"publish","type":"post","link":"\/\/www.g005e.com\/2015\/11\/10\/hazards-not-reallocating-equity\/","title":{"rendered":"the hazards of not reallocating partner equity"},"content":{"rendered":"

\"unbalanced<\/a>“this stage is usually when the crap hits the fan in many organizations.”<\/strong><\/p>\n

by <\/span><\/i>bill reeb<\/span><\/i><\/a> and <\/span><\/i>dominic cingoranelli<\/span><\/i><\/a>
\n卡塔尔世界杯常规比赛时间 \/ succession institute<\/span><\/i><\/a><\/p>\n

let’s\u00a0look at the common pitfalls we find with ownership distribution, using scenarios to drive home various points. let\u2019s say we have a five-partner firm.<\/p>\n

the ownership and age is as follows:<\/p>\n

partner\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 equity\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 age<\/u><\/p>\n

senior partner 1 (sp1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 35%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 65<\/p>\n

senior partner 2 (sp2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 35%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 63<\/p>\n

junior partner 1 (jp1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 53<\/p>\n

junior partner 2 (jp2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 48<\/p>\n

junior partner 3 (jp3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 42<\/p>\n

first of all, many firms would die for this kind of age split as \u2013 unfortunately \u2013 many firms have partners much closer in age than this 23-year range example. but continuing on, let\u2019s say senior partner 1 (sp1) wants to retire at the end of this year. if this would occur as it does in many firms, we would be scrambling for additional partners. but for the sake of this discussion, let\u2019s say we just addedjunior partner 3 (jp3) last year and we will add jp1 immediately after sp1\u2019s retirement with an ownership interest of 5\u00a0percent.<\/p>\n

so, if this were to occur without unusual intervention, the new ownership percentages would look something like this a year later:<\/p>\n

read more →<\/a><\/p>\n