Family Business: The guide for building and managing family companies
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The Family Business Compensation Handbook

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Introduction: Rational approaches to an emotional topic — Barbara Spector, Family Business Magazine

1. The basics: Understanding family business compensation

• The seven-alarm fire of family business compensation — Gerry Murak, Murak & Associates LLC, www.murak.com

• Compensation in a family-owned business: How to make it work — Sam H. Lane, Leslie Dashew, David Bork, Joe Paul and Dennis T. Jaffe, Aspen Family Business Group, www.aspenfamilybusiness.com

• Are you paying too much—or too little?
— James E. Barrett, Cresheim Inc.

• Paying more for family contributions ... without going too far — Stephen L. McClure, The Family Business Consulting Group Inc., www.eFamilyBusiness.com and Paul L. Sessions, Center for Family Business, University of New Haven, www.newhaven.edu/cfb

• Salaries, gifts and dividends: Do you know the difference? — Robert H. Brockhaus, Saint Louis University

A Family's Story: Compensation without melodrama — Marcy Syms, Syms Corp., www.syms.com

2. Strategies for success: Implementing a new compensation system

• How to structure a compensation system
— Lance A. Berger, Lance A. Berger & Associates Ltd., www.voicenet.com/~lberger

• Human resources strategy for the family firm
— Lance A. Berger and Dorothy R. Berger, Lance A. Berger & Associates Ltd., www.voicenet.com/~lberger

• Reviewing compensation policies and procedures — Gary Brooks, Allomet Partners Ltd., www.allomet.com

• Adapting proven pay systems from public companies — Jim McMahon, The Analytical Consulting Companies, www.analytical-consulting.com and James F. Reda, Buck Consultants Inc., www.buckconsultants.com

• Transitioning to equitable base pay for family employees — Stephen L. McClure, The Family Business Consulting Group Inc., www.eFamilyBusiness.com

3. Managing emotional issues: Families, values and money

• A self-assessment: How does your family deal with money? — Marc A. Silverman, Strategic Initiatives Inc., www.StrategicInitiatives.net

• What do we owe our children? — Henry D. Landes, Delaware Valley Family Business Center, www.dvfambus.com

• The family compensation picture is painted in many colors — James N. Bieneman, Crowe, Chizek & Company LLP, www.crowechizek.com

• Compensation and the 'emotional ledger' — Joe Paul, David Bork, Leslie Dashew, Dennis T. Jaffe and Sam H. Lane, Aspen Family Business Group, www.aspenfamilybusiness.com

• Guiding principles for family enterprises: Employment, performance management and compensation — Mark B. Rubin and Rene J. Beauregard Jr., The Metropolitan Group LLC, www.relative-solutions.com

• If family members ask for a job — David Bork, Aspen Family Business Group, www.aspenfamilybusiness.com

• Employee evaluations and promotions in the family firm — Margery Engel Loeb, Loeb and Associates LLC, www.loebgroup.com

• Achieving competitive advantage through performance management — Maureen Driscoll and Mary Korman, RSM McGladrey Inc., www.rsmi.com

• Uses and abuses of perquisites in family-owned businesses — James W. Lea, University of North Carolina at Chapel Hill

4. Enter the second generation: Challenges for siblings and cousins

• Reconciling pay differences between first and second generation — Colette Lombard Hoover and Edwin A. Hoover, Crowe, Chizek & Company LLP, www.crowechizek.com

• Partners, fairness and compensation — David Gage, Business Mediation Associates, www.Business-Mediation.com

• When compensation divides siblings — Ivan Lansberg, Lansberg Gersick & Associates, www.lgassoc.com

A Family's Story: Compensation and conflict for siblings in business — Marshall B. Paisner, ScrubaDub Auto Wash Centers Inc., www.scrubadub.com

A Family's Story: From equal to fair: Restructuring a pay system — Karen Young Kreeger, Family Business Magazine

A Family's Story: Siblings bring a compensation plan into focus — Kerry Pechter, Family Business Magazine

A Family's Story: Rewarding sibling partners who saved a business — Kerry Pechter, Family Business Magazine

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5. You can't do it alone: Attracting, retaining, motivating non-family employees

• Compensation in changing labor markets
— James E. Barrett, Cresheim Inc.

• Deferred compensation retains key non-family executives — Kenneth Powell and Robert Sattler, David Berdon & Co. LLP, www.dberdon.com

• Pay me now or pay me later: Tax considerations for privately held businesses — Donna J. DeFilippi, William M. Richardson and John J. Sieger, Sisterson & Co. LLP, www.sisterson.com

• The ties that bind: Compensation that fosters loyalty — Charles D. Epstein, Epstein Financial Services, www.epsteinfinancial.com

• Attract key people while increasing shareholder value — John F. Gephart, Union Central Life Insurance Co., www.unioncentral.com

• Taking stock of equity incentive plans — Fredric D. Tannenbaum and Steven C. Gustafson, Gould & Ratner, www.gouldratner.com

• Is an ESOP appropriate for your company? — Gregory K. Brown, Gardner, Carton & Douglas, www.gcd.com

• Employee benefits in a family business — David M. Morris, Franklin/Morris Associates LLC

A Family's Story: Phantom stock motivates non-family managers — Rob Laymon, Family Business Magazine

Family Stories: Owners' strategies for luring outside talent — Jayne A. Pearl, Family Business Magazine

6. Bringing out the best: Developing an incentive compensation system

• Think before you commit to incentive compensation — Ernest A. Doud Jr., Doud Hausner Vistar, www.dhvadvisors.com

• Variable compensation for family businesses — Thomas B. Wilson, The Wilson Group, www.wilsongroup.com

A Family's Story: From salary to commission — Barbara Spector, Family Business Magazine

A Family's Story: Motivating production workers—without revealing numbers — Jeffrey W. Glaze, Decorated Products Co., www.decorated.com

7. Sources of help: Obtaining compensation advice

• Compensating family company boards — Ivan Lansberg, Lansberg Gersick & Associates, www.lgassoc.com

• A formula for paying your outside directors
— James E. Barrett, Cresheim Inc.

• Why form a compensation committee?
— James E. Barrett, Cresheim Inc.

• Choosing a family-friendly compensation consultant — Henry D. Landes and Karl J. Buehler, Delaware Valley Family Business Center, www.dvfambus.com

8. Rewards of ownership: Pay for family stakeholders

• How to pay yourself more and deduct it, too
— Harvey D. Shapiro, Family Business Magazine

• Fair compensation for women in family firms — Kathy J. Marshack, www.executivecouples.com

• Hiring your kids for the summer — Jayne A. Pearl, Family Business Magazine, and Ira Bryck, UMass Family Business Center, www.umass.edu/fambiz

• Seeing bonuses in a larger framework
— James E. Barrett, Cresheim Inc.

Family Stories: Rules for taking money out of the business — Jayne A. Pearl, Family Business Magazine

• Motivating relatives to strengthen the family's legacy — Ivan Lansberg, Lansberg Gersick & Associates, www.lgassoc.com

• Dividend policy in perspective — François M. de Visscher, de Visscher, Olson & Allen LLC, www.devisscher.com

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