Why should you tie family compensation to market value?
In this podcast Vincent talks about family compensation and why it’s important not to let “family values” overly influence how family members are compensated. He discusses using benchmarking tools such salary.com to determine what people are worth according to market value and should therefore be paid.
It’s important to have a structure of compensation in place that includes documentation, end of year benchmarking, and regular reviews. When a system of this type is agreed upon and implemented, it becomes an objective standard that family members can refer to and can be used to mitigate squabbles among family members.