Compensation—it’s a touchy subject for family businesses.
In non-family businesses, designing a compensation plan is tricky enough. It balances recognition, individual talent, and merit-based promotions. Family businesses, on the other hand, deal with the added layer of employees being family. Unsurprisingly, because of the complexity of family dynamics, many family businesses avoid this subject entirely.
An unclear compensation plan may persuade Next Gen members to leave the family business—or not even join in the first place.
It’s critical family businesses clarify compensation plans if they want leadership to remain within the family. In this article, you will find a list of questions to help your family business design a clearer compensation plan.
Become a Member for Your Expertly Curated Advice
Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.