d39bcd59_ons_of_non_equity_partnerships__Advantages
[Management Attribute] Compensation [Pitfalls] Many firms do not spell out the income partner compensation program, creating confusion. Firms often don’t share the compensation differential between income partner and equity partner, so there is a lack of clarity about this. Sometimes, non-equity partners think they are being paid close to what equity partners make, but without the hassle of the buy-in or other partner-specific tasks and risks. This can cause non-equity partners to shy away from committing to full equity partnership. [Advantages] 
Income partners often have a guaranteed base salary, providing them with less earnings risk than equity partners have. Because most compensation programs offer non-equity partners a share of net income, their focus on profit performance is heightened. Most firms do not dramatically accelerate the income partners’ overall earnings when promoted, so this promotion is usually not costly.
The pros and cons of non-equity partnerships
Advantages