How do you determine a silent partner's salary if he begins working for the company?
If someone was a silent partner for about three years and owns 1/3 of the business with two partners and everyone agrees he can now start working with the business for a salary, how would you determine his starting salary? Is it much lower than the two partners who have been working for three years? Thanks.
It depends on a lot of different factors. Here are few:
Expertise: What is his area of expertise? How does it contribute to the business?
Market Worth: What is the market worth of the position he is serving?
Investment: How much did he contribute in terms of investment? What was his share? Did his share grow in the 3-year period?
Partners: Who are the other two partners? What is their role in the business? How will his role be superior or inferior to their role? What do other partners think?
Value Addition: How will the partner's contribution add value to the business? Sometimes, it is not the work that counts, sometimes goodwill and reputation have a role to play too.
Salary Structure: What is the current salary structure of the organization? How does this new role fit in?
Ask these questions and see where it goes.