AboutChristopher Flett Expertise I can answer all questions regarding negotiation with clients, vendors, partnership deals, co-
venture opportunities, and the like. I can also comment on negotiating salaries, contract
prices, and other financial considerations regarding business.
Experience I have started 11 companies, have negotiated 100's of contracts, from commercial premises to book deals. I work with a clientele on the West Coast that is in negotiations on a weekly basis.
Publications "What Men Don't Tell Women About Business"
Business Week
Entrepreneur Magazine
The New York Times
Chatelaine Magazine
The New York Post
The Washington Post
The Toronto Star
USA Today
The Vancouver Sun
Pink Magazine
Forbes Magazine
The Globe & Mail
The National Post
The Guardian (UK)
CIO Magazine
BC Business Magazine
Education/Credentials Bachelor of Arts (History & Philosophy)
Advanced Marketing Diploma
Provincial Instructors Diploma
Certified International Trade Professional
Past/Present Clients Bank of America
BC Hydro
Key Bank
Deloitte
KPMG
Duke Energy
RBC Dominion Securities
HSBC
TD CanadaTrust
Government of Canada
Question We have a successful interactive design firm. There are 3 founding partners and a new partner we added about 2 years ago. This newer partner has a program where she earns one percent per year with a cap at 5 percent and gets slightly more pay than the founders. The founders have 3 way equal split at 28 percent and the same base pay to match. The base pay unfortunately is 1/3 of market rate but we all know how that goes when you start up.
After our executive retreat its clear that if I didn't speak up the partners will continue to take advantage of me working harder and at a higher capacity than they can with out compensation. This starts to burn people out. The last thing we want to do it burn the leader out of the business. The responsibilities are not exactly equal as they are based on abilities. One founding partner does art direction and bookkeeping. The other one does creative direction and design recruitment. The new partner does project management and proposal proofing. Then we have about 3 to 4 other full time employees.
The issues here is that I am doing 4 to 5 roles. Including CEO/ED, sales director, strategy director, Account Executive, and IT management. This is totally my fault, so the point I brought up with the partners is that I知 feeling that this partnership is unfair as I知 doing whatever it takes to make this business work. I致e already transitioned off what I can to the other partners and still left with the above roles. They admitted that I知 much more driven than they are and that it will be hard for them to operate at the same frequency.
Therefore the conversation came up about compensation by adjusting the partnership split. The issue now is how much? And how do you go about calculating it. On the other side of the argument, because I am doing so many jobs its not like I知 doing any one of them "very well" but I知 managing to get by for now. And they alternative to me not doing any one of those roles is that it does not get done. Next step after this is to hire more executive help, but that will not be at least for another year. And its already been 6 years! Would love to know about negotiating and calculating a more reasonable partnership split.
Answer Hi Neil,
The challenge with a situation like this is that where money is involved, partnerships get strained. I'd recommend that your ownership team review the organizational chart of the company and assign a remuneration for each role. Add up the entire reumeration schedule, divided it by the roles, and each position will have a value. While your partners are unlikely to give you a larger stake in the company, they might concede to paying you out a bonus on the extra efforts. If they don't, you must divy up the responsibilities fairly and then watch the chips drop as they may. Many a professional has been worked to death because they had less than equal partners, in regards to input.
Above all, don't make it personal. It's business. Look objectively at what the company needs, who does what, and how you all get paid. Your partners will either agree to a bonus structure until positions can be delegated, or give them their share of the work back. It is up to you in regards to if you do more of you share for the same price. Stop the madness my friend.
