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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.
You can call me Nancy, just pay me
Nonequity partners are just employees
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”).
BCG Partner is a non equity Partner. Same as an experienced AP at McKinsey or Bain. Multiple client projects and business development
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.