On the other hand, their figures are likely to be skewed up. A closely similar method is to follow what other, comparable, firms, are offering their position-holders. Any compensation that he receives above this level is evidently a hidden dividend. The arbitration can be carried out directly by the market or by select specialists. There are, however, more direct approaches.
Some solutions are performance related.
This, really, is the hidden dividend, disguised as a salary. The remaining part of the compensation package will be proportional to some performance criteria. The second partner supervises and manages activity B, which yields to the company BB in revenues and BBB in profits. A recalculation of the compensation packages will be done quarterly to reflect changes in revenues and in profits. The profits should be used only when the firm is divided to clear profit and loss centres, which could be completely disentangled from each other.