Salaried Partner Agreements

Written by sam grover
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A salaried partner is a partner in a business who receives a fixed salary. This is in contrast to an equity partner, who receives a share of the firm's profits.

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Status

A salaried partner is paid a fixed share of profits, which makes him more similar to an employee in his compensation. However, he is closer to becoming an equity partner than a standard employee. This is why salaried partners are usually junior partners on their way up the ladder.

Decision-Making

Even though they aren't paid a percentage of the firm's profits, salaried partners are often involved in its decision-making process. This is how it is a halfway point between being an employee and being a full-fledged partner. They have the power of being a partner, but are not fully compensated for it.

Debts

Salaried partners do incur debt obligations on behalf of the firm, though. This means that if the firm goes bankrupt their assets, may be at risk, which is something salaried partners need to consider before becoming partners.

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