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Soriano: Overpaying family members is dangerous


SunStar
+
February 22, 2021
Founders and business owners must never toy around with a family member’s remuneration package. It is a very sensitive topic as it involves money. Paying them less than what they are capable of doing is not just downright dangerous but can compromise relationships among siblings and relatives. On the other hand, paying excessive compensation to those who are not deserving can demoralize non-family employees, inevitably leading to higher attrition rate and poor performance. Unless business owners confront pain points over compensation, this problem will continue to sow division within the enterprise.
I am sharing a portion of an email sent to me a few months ago by Larry, a 67-year-old founder of a successful family enterprise: “My wife and I are extremely grateful that you never gave up on us. The turning point was when you were able to clearly articulate the dangers of overcompensating my children. I recall what you ....

David Harland , Lou Vlahos , Farrell Fritz Attorneys , டேவிட் ஹார்‌ல்யாஂட் , லூ விலாஹ்ோஸ் , ஃப்யாரெல் ஃப்ரிட்ஸ் வழக்கறிஞர் ,