My business partner and I have been going through some talks about where we see the company going. I told him I would like to continue managing the company, but want to step away from the development side for personal reasons.
He says if I am not doing the work, I shouldn't get paid my 50% of the profit. Normal payout is 20% of development work performed, then a quarterly check for 50% of profit (profit being after expenses and 20% cut to company).
I feel like if partners or even investors wouldn't be getting that fat check from profit for doing nothing but having invested, why invest in a company at all?
Am I wrong in thinking this? He is a licensed attorney in 2 states, so he isn't an idiot by any means. I am just wondering why I feel like a jerk in thinking my investment in the company should still be paid out in the quarterly checks even if someone else is hired to do the work (obviously I'm not asking for the 20% and the 50%, just the 50%).