Aligning Management Compensation and Shareholder Earnings

Published in Family Business Magazine January 2021

The boards of family businesses must find the proper balance between compensation for the management team working in the business and earnings for the family shareholders who own the business. It is likely that some family members will wear both hats, which heightens the challenge of distinguishing the return on labor (management) from the return on capital (shareholders).

Click here to read the full article (paid subscription required)


Previous
Previous

The Economics of Family Shareholder Redemptions

Next
Next

What Time Is It for Your Family Business?