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Family Compensation - You Can't be Equal and Fair

Posted on Thursday, February 11th, 2021

by Dan Beenken

Compensation is already a touchy subject – and if you throw on top of that a heaping spoonful of working with your family, things can get messy real quick.Family Business Compensation

In regards to family compensation, the questions and topics to consider are seemingly endless.   Who decides what family employee pay should be?  Does each family member make the same amount?  Do we pay our family more than an outside employee?  Do we compensate non-active family?  How are raises/promotions determined and by whom?  How do we handle family bonus pay?  Should we utilize a compensation survey, consultant, committee?  Etc. Etc. Etc.

Our upcoming Breakfast Series session on March 26TH will focus on the topic of compensation.  We will have both a compensation consultant and a family business on our panel giving their viewpoint and experience on now to navigate your family business through this area.  

Chris Vernon, 4th Generation President of Vernon Companies in Newton, will describe the evolution of how they have integrated various strategies to deal with family employee compensation.  We will also have Martha Sullivan of Provenance Hill Consulting joining us as an expert in family business compensation techniques.  

We’ll cover a wide array of compensation tools and strategies with examples and detail, including:

  • Compensation surveys

  • Family bonus pools

  • Active vs Non-Active family compensation

  • Job descriptions for family employees

  • Compensation committees

We’d love to have your family as a member of the Iowa Family Business Center.  For more information and to register, please visit us at - https://advanceiowa.com/breakfast-series or call us at 319-273-IOWA