it\u2019s part of a merger strategy.<\/li>\n<\/ol>\n \nreasons for adding new non-equity partners<\/strong><\/p>\n\nnon-equity partner is often a partner-in-training position. the firm recognizes that a manager has the talent and skills to function as a partner. it provides the non-equity position so that both the firm and the partner candidate have an opportunity to work with each other to determine if the individual is a good fit in the firm\u2019s equity partner group. at many firms, it\u2019s perfectly acceptable to be a permanent non-equity partner.<\/li>\n it enables a firm to recognize the stature and contributions of a valuable, longtime staffer who does not meet all the criteria for being a partner (usually bringing in business is lacking).<\/li>\n it\u2019s a staff retention tactic. certain longtime staff who are now managers reach the point in their career when they feel that if they don\u2019t make partner, or if they can\u2019t call themselves \u201cpartner\u201d to the outside world, including friends and family, then it\u2019s time to move on. years ago, firms made the mistake of promoting these valuable people directly to equity partner. but firms have been finding that the non-equity position is a good position so that these valuable people can now be called partners.<\/li>\n some firms, usually with just a few partners, have built up their compensation and the firm\u2019s value to such a high extent that they simply don\u2019t want to share it with others who don\u2019t produce at their high level. so people are made non-equity partners and compensated very well, perhaps better than other firms\u2019 equity partners.<\/li>\n for lateral hires, it provides both sides an opportunity to test each other out before fully committing to an ownership arrangement. the same applies to merged-in partners.<\/li>\n<\/ol>\nequity vs. non-equity partners<\/strong><\/p>\n\n\n\ncharacteristic<\/strong><\/td>\nnon-equity partner<\/strong><\/td>\nequity partner<\/strong><\/td>\n<\/tr>\n<\/thead>\n\n\n1.is the person a driver<\/strong> in the firm?<\/td>\nto some degree<\/td>\n often<\/td>\n<\/tr>\n \n2. expected to bring in business?<\/td>\n to some degree; encouraged but often not required<\/td>\n often<\/td>\n<\/tr>\n \n3. manage a certain size of client base?<\/td>\n usually several hundred thousand dollars in billings, some of it delegated to non-equity partner<\/td>\n often $1 million or more<\/td>\n<\/tr>\n \n4. work on clients of other equity partners?<\/td>\n some; varies from firm to firm<\/td>\n very little<\/td>\n<\/tr>\n \n5. technical skills?<\/td>\n high level; new non-equity partners still may need help<\/td>\n high enough that a second review is seldom needed<\/td>\n<\/tr>\n \n6. is staff-level work delegated?<\/td>\n more than as manager but delegation not always possible<\/td>\n almost always<\/td>\n<\/tr>\n \n7. client relationships?<\/td>\n good relationships but sometimes secondary to equity partner relationship<\/td>\n strong relationship; always the primary partner<\/td>\n<\/tr>\n \n8. buy-in?<\/td>\n no<\/td>\n yes<\/td>\n<\/tr>\n \n9. liability?<\/td>\n no<\/td>\n yes<\/td>\n<\/tr>\n \n10. held out as a \u201cpartner\u201d?<\/td>\n yes<\/td>\n yes<\/td>\n<\/tr>\n \n11. attends partner meetings?<\/td>\n yes, but excused when confidential issues discussed<\/td>\n yes<\/td>\n<\/tr>\n \n12. a vote?<\/td>\n not legally, but fully allowed to influence others\u2019 decisions<\/td>\n yes<\/td>\n<\/tr>\n \n13. determination of comp?<\/td>\n set subjectively by management, just as for staff<\/td>\n fits in with the firm\u2019s equity partner comp system<\/td>\n<\/tr>\n \n14. participate in the firm’s profits?<\/td>\n not directly, but usually eligible for bonus based on non-equity partner\u2019s impact on the firm\u2019s overall success, including profitability<\/td>\n always<\/td>\n<\/tr>\n \n15. receive w-2?<\/td>\n almost always, paid as a salary<\/td>\n no, unless firm is a corporation<\/td>\n<\/tr>\n \n16. participate in the firm’s retirement benefits?<\/td>\n rare, but a growing number of firms are beginning to award buyouts to non-equity partners, albeit at lower amount than equity partners<\/td>\n always<\/td>\n<\/tr>\n \n17. access to partner comp data?<\/td>\n usually not<\/td>\n yes, but if a closed comp system, access is limited<\/td>\n<\/tr>\n \n18. access to confidential data: financials, operating stats, etc.<\/td>\n usually, but not partner compensation data<\/td>\n yes, except certain partner comp data if a closed system<\/td>\n<\/tr>\n \n19. sign client reports?<\/td>\n some do, some don\u2019t; aicpa ethics says the guideline must be included in the firm\u2019s quality control policy<\/td>\n yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n
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the ways they differ.<\/strong> \n <\/a> \nby marc rosenberg<\/i> \nhow to bring in new partners<\/i><\/a><\/p>\n","protected":false},"author":1339,"featured_media":115401,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3120,3002,2266],"tags":[],"class_list":["post-114937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pro-member-exclusive","category-special","category-partner"],"acf":[],"yoast_head":"\nadding new partners: 19 reasons to choose between equity and non-equity - 卡塔尔世界杯常规比赛时间<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n