The Family Business Compensation Handbook
- How can our family members' expectations and jealousies be openly addressed so fair, rational pay systems can be developed?
- How can we reward family members for their contributions to the business in a way that won't result in favoritism charges from non-family employees?
- How can our company design incentives to attract top talent without giving away the family legacy?
- How can we establish equitable pay for siblings and cousins who contribute most to the business without alienating the others?
When you face questions like these, where do you find the answers? Your trade association doesn't have them. Neither does your local Chamber of Commerce. Traditional sources of compensation advice and data simply don't address the very compensation issues that are most crucial to family companies.
The Family Business Compensation Handbook provides expert counsel on moving beyond seat-of-the-pants compensation decisions to develop comprehensive pay policies that reflect family goals and reinforce business strategy. Designed for frequent and easy reference, the 172-page Handbook is written expressly for company owners, managers and advisers. Without question, it will help you understand -- and successfully resolve -- the quandaries you face when designing and implementing family company compensation.
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
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