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Originally Posted by Unregistered
Correct me if im wrong, My understanding is that junior partners dont have " equity" but are merely paid a higher salary of about 16-29 k pm. They are not considered true partners in that sense. Heard the "true" EQUITY partners are the ones who are the senior partners or Expats.
Logically, all big 4 promote so many people to partners each year and the older existing partners are still around and not retiring. It makes so sense that so many hundreds of people have EQUITY priviledge. The ones who get to " buy into the firm" are a selected few
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For the Singapore EY, what usually happens for the junior partners is that they usually do not have enough capital to buy into the partnership. Hence, for the first few years, the junior partners do not actually get any huge dividend payout from their equity as that is used to pay off their buy-in into the partnership. Only after a couple of years do they actually start to take home lots of money from their equity stake in the partnership.