Take the “Family” Aspect Out when Compensation Planning in a Family Business

In my last blog, I talked about the importance of paying family members in family-owned businesses for the work they do, as if they were not family members. Paying family members equally for vastly different jobs or compensating just because there is “family” in their shadow title could cause much disruption and dissatisfaction with family members and employees.

 Compensation Strategies for Family-Owned Businesses

The article referenced below by Edmund B. Ura, Compensation in the Family Owned Business, published in “The Compensation Times”, is an excellent, thorough explanation of how to view pay for family members working in or outside of a family business. The author reminds us that “fair doesn’t mean the same thing,” when dealing with the family in a business and just like non family-owned businesses, compensation is based on contribution.

 Family Business Compensation Planning

There are many more things to consider when putting together an equitable compensation plan for a family-owned business. Conover Consulting has worked with generations of families to plan pay structures, equity stakes and overall compensation strategies to keep peace in the family