d39bcd59_ons_of_non_equity_partnerships__Advantages
[Management Attribute] Firm Career Pathing and Promotability [Pitfalls] Confusion can arise in the firm as to whether one has to be a non-equity partner before becoming an equity partner. Most firms do not create enough of a distinction between income and equity partners in terms of competencies or responsibilities, creating confusion about roles and career paths. Most firms do not document what it takes for an income partner to “earn” equity status, leaving income partners in the dark. [Advantages] 
Firms can promote bright up-and-comers when their top-line revenue is not yet significant enough to sustain their admission as equity partners. Firms can promote managers to income, or non-equity, partners without being committed to progress them further. This is a tactic we call “parking.” The firm and the income partner can “test drive” their partner relationship before the income partner is admitted as an equity partner. This makes the promotion easier to “undo.”
The pros and cons of non-equity partnerships
Advantages