Most businesses are cash guzzlers. They have liquidity cycles which usually define the remuneration structure — the way a family spends and lives its life.
Following on the early release of the June 2017 issue of FBR, we are pleased to present the following three précis. Thanks to the original authors and the authors of the précis for this continuing feature in The Practitioner.
Family Firms and Compliance: Reconciling the Conflicting Predictions Within the Socioemotional Wealth Perspective
Corporate scandals and financial meltdowns have led to corporate governance reforms all around the world. In addition to the rules and laws that firms have to legally comply with, several self-regulatory codes or ‘soft-laws’ have been enacted in many countries.
Family Firm(s) Outcomes Model: Structuring Financial and Nonfinancial Outcomes Across the Family and Firm
We all know that many family business owners have different types of goals than do the executives of non-family enterprises, especially publicly-traded corporations. In spite of this awareness, researchers have predominantly attempted to measure family firm performance by financial measures.
Family business leaders have long been exhorted to professionalize their businesses. While what this entails has yet to be precisely determined, most would concede that professionalization entails the adoption of a range of human resource systems and practices.
When a family-owned business needs to recruit a non-family CEO or COO, a well-structured Long Term Incentive Program (LTIP) is essential in attracting an outstanding candidate. However, LTIPs can make some family business owners uncomfortable.