Post: Nonequity partner salary as draws
Posted by Bill on 12/29/07
This one nonequity partner (NEP) has been getting a
bimonthly salary. The first six months he had been
working on contingency cases. The second part of the year
he brought in a substantial amount of revenue. Now he
thinks the managing partner (MP) is stealing money from
him because the MP is offsetting a lot of his revenue from
the first half of the year where the NEP didn't produce
much. The NEP keeps using the phrase "I eat what I kill"
but seems to be really in denial that he got a guaranteed
salary all these months. Doesn't eat what you kill entail
not getting anything until you actually kill something?
So I asked the NEP what is your salary then? Aren't you
an employee? He said "no, I am a partner (he's actually a
non-equity member of the firm since it's a LLC - but let's
just stick to the partner terminology) and the salary were
just advances against my draw at the end of the year."
The guy sounds confused as he wants to benefits of the NEP
arrangement since he gets guaranteed salary, but wants to
keep his profits under the EWYK system. I don't think you
can pick and choose like that. Plus under the EWYK
system, you don't get credit for contingency cases until
you actually hit, right? I would appreciate some feedback
on this as I am not completely versed in the various law
firm partnership/compensation/profit models.
Posts on this thread, including this one
- Nonequity partner salary as draws, 12/29/07, by Bill.
- Re: Nonequity partner salary as draws, 12/29/07, by Curmudgeon.
- Re: Nonequity partner salary as draws, 12/30/07, by Bill.