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Non-equity partner is a paradoxical title. Shouldn’t be called a partner without equity.

On the other hand in our industry, we also have managers who don’t manage anyone, VPs who are 2 levels below directors, Senior Associates who are anything but senior, and leads who don’t lead anything. So, I guess non-equity partner can be a thing.

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You can call me Nancy, just pay me

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Nonequity partners are just employees

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Depends on the firm. Our firm’s non-equity partners still got a K-1 because they still shared in the income of the firm. Equity partners just got more.

Deloitte calls non-equity partners “managing directors”. Managing directors are salary and bonus employees just like everyone else while partners/principals with equity are compensated based on the value of their shares (“units”), which they purchase when they join the partnership (“buy-in”).

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BCG Partner is a non equity Partner. Same as an experienced AP at McKinsey or Bain. Multiple client projects and business development

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And then some firms have Managing Directors that are actually equity partners. Andersen’s MDs are all owners but they do work at a separate entity so they can get part of their comp on a W-2.

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