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03/26/2019
In brief: Originally appearing in The Family Business Board Volume 2: Governance for Agility and Growth, this case study shows how a family business board can use a committee of independent directors and an outside consultant to resolve a family conflict over executive compensation.
This resource can help your board to
Set executive compensation at a family business
Resolve conflicts between family members at a family business
Hire independent consultants to develop an executive compensation philosophy
Most relevant audiences: directors on family business boards
This case shows how one board used a committee of independent directors and a consultant to resolve family conflict over executive compensation.
Situation
Family-owned $300 million manufacturing company
Two family members (brothers) were senior executives (CEO and COO) of the company and also board members.
Two family members (brothers—and cousins of the two senior executives) were on the board of Directors but not actively involved in management of the company.
Several other family members (cousins) held minority interests in the company but did not sit on the board.
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