How to transition into silent partnership, incentivize partner

I run a business with an old friend. We're doing extremely well but I'm also in school and want to focus more on that. The business is my partner's only job. I'd like to transition into doing zero or minimal work for our business, and I think he'd be willing to take up most if not all of my share of the work in exchange for more pay.

It seems like the fairest thing to do would be to pay him additional salary for taking on my share of the work. My worry is this. Both of us are already kind of lazy and complacent about the business at times. We lose out on lots of opportunities because we're doing so well we don't feel much urgency to take those opportunities, and because of diffusion of responsibility. I worry that if we raise my partner's salary even more, he'll get even more complacent and not feel much need at all to grow (or even run) the business. And I worry then that I'll grow resentful about this. (I also worry about him growing resentful about my profiting from what would be mostly his work. But since we built the business and reached our success together, I think this is less likely.)

We could avoid this problem by hiring someone else to take a CEO-type role, but our niche is very small and makes this very difficult. I'd consider this possibility at some point, but only after ruling out a transfer of responsibility to my partner.

My question is: if my partner is willing to take more responsibility in exchange for more pay, how do we incentivize him to actually do stuff, given that he's already complacent with what he currently makes? An hourly wage seems strange (and maybe petty?) given the salary figures we're dealing with, but I just don't know what our options are.


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