Pay reductions: equity partners, profit share partners and other partners

TempUsername0307

My company have just announced pay reductions. The reductions vary according to whether you are an equity, profit share or salaried partner. In their notes they say a salaried partner will have ‘an X% salary reduction’ and have their car allowance removed. But under equity and profit share partners they say “Equity partner salary equivalent reduction of X%” and “Profit partner salary equivalent reduction of X%”. Does anybody know the meaning of the word “equivalent” here? Does it mean equity and profit share partners will keep their salary but will lose X% of their share of profits? And does that seem fair?

SuperWizard

It probably means equity and profit share partners will keep their salary but lose a percentage of their profit sharing, yes. The best person to ask would really be your employer, as only they know what they meant by "equivalent" here.

Jeremy535897

I suspect the word "equivalent" is used because they don't have a salary as such. In firms like this, there are many complex and different structures.