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Compensating Partners in a Start-Up

David Maister (author of, among other great books, The Trusted Advisor, a "must read" for anyone who makes a living as a management consultant) has a great post with some thoughtful advice on Partner Compensation in a Start-Up on his blog.

See my comments on this post; and I hope that any of you who work in or with start-ups will add your own as well.

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I am looking for advice about compensating myself and co-founder in our consulting start-up. We are the only two employees (C-corp status) at this point. My partner feels we should be compensated differentially for sharing leads (bonus of 5% for each sale) and I feel we should share compensation equally. At this point, we share all sales activities equally (sales calls, proposals, etc.) What are your views and what is the prevailing practice for small start-ups? Thanks!!

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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