Why Compensation for Family Members Should be at Market Value

Why Compensation for Family Members
Should be at Market Value

Family Ink
Summer 1996

by Bernard J. D’Avella, Jr., Esq.

One of the greatest struggles of operating a family business is separating the family from the business.Oh yes, there are many great benefits to having family in the business and to being a family member in a family business, but the most difficult problems result when “family values” and issues take over, leaving business values and needs wanting.There is no greater source for family business problems–nor more fertile ground for their cure–than the family business compensation system.

Starting with the premise that family members’ compensation should be a market value, let us look at the various considerations–often conflicting–in a family business, which will in turn demonstrate that this premise is correct. More…

Risks And Rewards Of Non-Family CEOs

Risks And Rewards
Of Non-Family CEOs

Family Ink
by Bonnie M. Brown, Ph.D.
Transition Dynamics, Inc.

Last year I interviewed several non-family CEOs (Chief Executive Officers) from around the country.I was interested in how they became involved in a family business, what they liked and disliked about working in a family business, and what they perceived as the risks and rewards of their position. Over the years, I have also spoken with scores of family business owners about the possibility of bringing in an outsider to run the company.It is a trend that makes a lot of sense if the fit is right. That, however, can be a challenge.

If you are considering a non-family CEO, you will need to evaluate that option from a variety of perspectives.The following questions may help you get started. More…