Turning a manager into a partner
When and how a hired manager becomes a partner: whether a stake can be a reward, what the owner should fix in the agreement, who appoints the CEO when there are several partners. A separate thread covers owners stepping out of operations and why Ukrainian owners are reluctant to share equity with management.
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Is giving the CEO a share of the business a fitting reward?
Handing over a share is not a thank-you but the end point of a path on which trust was built. Trust is an economic category: it is either earned or not. The author met this at two partner meetings where owners wanted to "reward" the CEO.
Topics: Turning a manager into a partner
How do partners know they are ready to step out of operations?
It takes effective delegation, which needs a month for a task, three months for a project and six for a direction. A task is an action, a project a system of actions, a direction a system of thinking and decisions, each level with its own handover procedures.
Topics: The three roles of a co-owner · Turning a manager into a partner
How can a hired executive win an equity stake in a business?
On the eve of a final interview with the owner, a CEO candidate used a session to build a negotiation strategy: an owner profile, a self-portrait, matching and risk zones, and answers on stake, guarantees and KPIs. He aimed for 50% and received 10%.
Topics: The author's own partnerships · Tools and services · Turning a manager into a partner
What should an owner put in writing before giving a top manager a stake?
Eight items for the partnership agreement: reporting, terms and appointment of managers, audit, company valuation, meetings, internal control and the right to launch checks. Basis: in 82% of fraud cases top managers are suspected, in 10% business partners.
Original: LinkedIn
Topics: Partner misconduct and internal control · Partnership agreement · Trust between partners · Turning a manager into a partner
Who appoints the CEO in a company with several partners?
A question for discussion: as a company grows, its partners sooner or later consider appointing a CEO from the staff or from outside. The author asks how partners should agree on this.
Original: LinkedIn
Topics: Turning a manager into a partner
Is it worth making a top manager a partner?
Yes, if the owner is willing to share equity: it retains a key person, raises motivation and gives the company a partner who thinks like an owner. Signs of readiness: initiative, over three years in the company, willingness to buy a stake or earn it from profit.
Original: LinkedIn
Topics: Forming a partner team · Partnership session · Turning a manager into a partner
Is the goal of leaving day-to-day operations always sound?
If the partners' end goal is lying under a palm tree, outstanding results rarely follow, so at a session it is a cue to ask what they really want. The author's example is Elon Musk, who with a fortune near $200 billion lived at his factories beside his team for years.
Original: LinkedIn
Topics: Turning a manager into a partner
Why do Ukrainian owners not give hired directors a stake?
Only 2% of directors hold a small stake, and the share of founder-directors rose from 64% in 2021 to 72.7% in 2024. The author sees weak management motivation here and names the option as an alternative: not a stake, but a path to one.
Original: LinkedIn
Topics: Equity split between partners · Forming a partner team · Turning a manager into a partner
Where does the move from C-level manager to partner of the owner begin?
With stating your own goals: why you want an equity stake rather than a bigger bonus. The next steps are to show unique value, find ways to grow the pie, review results with the owner, scale what works and strengthen trust.
Original: LinkedIn
Topics: Forming a partner team · Turning a manager into a partner
What did partners settle when everyone and no one was in charge of finances?
A business run by three relatives and a close outsider appointed director had no shared strategy and erratic dividends. The session fixed a dividend policy, deadlines for strategy talks, shares, how partners present themselves and the decisions needing a “yes” from all four.
Original: LinkedIn
Topics: Partnership session · Turning a manager into a partner
How can a top manager prepare to ask for a stake in the business?
Sooner or later a top manager has to ask for a stake in the business he runs, and an outside view helps. The author prepares the negotiation strategy for such talks and has put together a guide for preparing on your own.
Original: LinkedIn
Topics: Tools and services · Turning a manager into a partner
Why do an ex-corporate executive and a founder read events differently?
Each has a different idea of what is appropriate and a different way of approaching tasks, so partners perceive events differently, weigh them differently and assess them differently. This breeds disagreement; the author covers the roots of the problem at the link.
Original: LinkedIn
Topics: Turning a manager into a partner · When partners see different realities
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