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Downside equity

(noun) - an asymmetrical business arrangement, usually in employment, where the risks of loss are concentrated on the employee to ensure that the employee has guaranteed losses on any business reversals and contingent returns on any positive developments.

You have mountains of downside equity in that contract. The partners can deduct from your paycheck to make you eat the cost of delays that the partners exclusively control. They can swallow your commission if their client doesn't pay. They can even recapture from your future salary any underpayment with the negative carry-forward that they've imposed. On the whole, you're just a sharecropper with a JD.

by Frustrated_Monolingual November 29, 2010

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