IVA Glossary
A
Associates
An associate company is basically made up of a group of smaller companies, which usually holds no more than 50% stakes, but must hold more than 20%. This means that the company group does not have full control over administrative matters (especially voting rights). If this group holds a majority stake (which means 51% +), it automatically becomes a subsidiary, and not an associate.
There are certain differences between a partner and an associate, basically the associate is under the supervising of a partner. There are three types of associates: junior, senior and managing associates. An associate can work his way through and become a partner at a certain point in the future, and after he/she has fulfilled all his obligations as an associate.
An associate is not being paid on "per share" or "per profit" basis, but usually receives a fixed income. Depending on the performances, he/she might earn a plus income. An associate is also not made directly responsible for faulty actions of the respective firm, but the partner is. This is the general hierarchy model for most of the big firms; however there are instances where the associate vs. partner rights are still being debated.
There are certain differences between a partner and an associate, basically the associate is under the supervising of a partner. There are three types of associates: junior, senior and managing associates. An associate can work his way through and become a partner at a certain point in the future, and after he/she has fulfilled all his obligations as an associate.
An associate is not being paid on "per share" or "per profit" basis, but usually receives a fixed income. Depending on the performances, he/she might earn a plus income. An associate is also not made directly responsible for faulty actions of the respective firm, but the partner is. This is the general hierarchy model for most of the big firms; however there are instances where the associate vs. partner rights are still being debated.
