Devising a fair compensation system for family members
This is probably one of the most avoided problem areas of family business! Rivalries, jealousies, drifts, unfairness, damaging the family relations and worse, ultimately ruining the business may all arise from haphazard and unfair practices of family members compensation, in and out of the business. There are loads of research on this.
Setting up a fair and sustainable compensation system may not mean “equality” for all family members, as most family business leaders wrongly assume! Any successful business requires a well-establishes “performance- based” monitoring and rewarding system. But it is practically impossible for a family to objectively appraise the real performance and contribution of its own members.
I help establish the necessary mechanisms whereby over the long term not only the family members get fair compensation and rewards out of the system, but also the interest of their business is protected. My previous decade long advisory experience with leading multinational companies around the world in strategic management resources gives me a unique background in coming up with practical solutions.