Originally Posted by foxeng
Don't count Joan out. She is a full partner and Pete is only a junior partner.
What? When Joan was admitted as a partner, she got a 5% stake. As there were five partners before that, 3 of whom were senior partners and 2 of whom were junior partners, a 5% share would not make her a "full" partner. Here's the math if you care to follow it:
Senior (or "full") partners (they each put up $100,000 in equity at the formation of the new firm):
Bert Cooper 25%
Roger Sterling 25%
Don Draper 25%
Junior partners (Lane put up $50,000, and Don paid for Pete's $50,000 to buy into the company):
Lane Pryce 12.5%
Pete Campbell 12.5%
TOTAL OWNERSHIP 100%
With the addition of Joan, that brought the total number of partners to six. Her getting a 5% share meant that her admission as a partner diluted the ownership interests of all the other partners (Cooper, Sterling, and Draper each gave up 1.25% of the company, and Pryce and Campbell each gave up .625%, which all put together make Joan's 5%). After her admission as a partner, the ownership interests looked like this:
Bert Cooper 23.75%
Roger Sterling 23.75%
Don Draper 23.75%
Lane Pryce 11.875%
Pete Campbell 11.875%
Joan Harris 5%
TOTAL OWNERSHIP 100%
That still makes Joan junior to Cooper, Sterling, and Draper, and even junior to Pryce and Campbell. Her share is less than half the share of the "junior partners." She's more like a "baby junior partner."
Are you sure you're not conflating "voting partner" with "full partner?" Joan's insistence that she not be a "silent partner" I think was a misuse of the term. A silent partner usually obtains a voting interest in a business partnership by putting up equity capital, but wishes to remain anonymous to outsiders for various reasons. I took that exchange to mean that Joan insisted on being entitled to voting privileges, which of course usually comes with owning an equity position in a business organization, which rendered her demand somewhat moot. The only consequence of being junior to other partners in her case is that her votes don't count as much as theirs do.