My business partner is the co-owner, but they have completely checked out of their leadership seat while still drawing a full executive salary. How do we address this ownership versus leadership seat discrepancy on our Accountability Chart?

This is one of the most common and sensitive issues in partner-owned businesses. To resolve it, you must clearly separate the owner box from the seat on the Accountability Chart. Being an owner of a business is an investment relationship. Sitting in a seat on the leadership team is an operational relationship.

Draw a clear line between these two distinct roles. An owner is entitled to dividends and a share of the profits based on their equity. However, an employee sitting in a leadership seat must GWC™ that seat and execute their daily roles to deserve their salary. If your partner has checked out, they no longer GWC™ their operational seat.

Schedule a private meeting to discuss this structure. Use the Accountability Chart to show them the specific roles of the seat they currently occupy. Be honest and explain that their lack of execution is hurting the business and creating resentment among the rest of the leadership team.

Offer them a clean transition. Suggest they step out of their operational seat entirely and transition to a pure owner or board-level role. They will still retain their equity and receive dividends, but their executive salary will be reallocated to hire a highly capable leader who can actually run the department. This preserves their financial upside as an owner while allowing the business to scale with active, engaged leadership.

Category: Leadership Team