Kyler Gilbert, Executive Vice President of BCR was published in the latest edition of USB Family Office Quarterly. “Balancing Fairness and Family” explores how to build an effective compensation policy for family enterprises. “While compensation is usually straightforward in non-family companies, emotions and legacy come into play in family enterprises, ” writes Kyler.
Key Insights from the Article
- Compensation in family businesses is emotional, not just financial. Pay often reflects deeper issues of fairness, recognition, and family history, which can quietly impact trust and morale if not handled thoughtfully.
- Fair compensation starts with structure. Clear roles, responsibilities, and expectations are essential so pay is tied to what someone actually does, not assumptions or family dynamics.
- Market data—not family sentiment—should guide pay decisions. Using benchmarks creates objectivity, supports retention, and reinforces professionalism across both family and non-family employees.
- Compensation and ownership must be treated separately. Pay should reflect job performance, while ownership returns should reflect equity, avoiding confusion and resentment between working and non-working family members.
- Strong governance and transparency make compensation sustainable. Clear processes, consistent communication, and third-party input help depersonalize decisions and build trust.
- Fair compensation strengthens both the business and the family. When done well, it reinforces shared values, accountability, and long-term unity rather than creating division.
BCR supports family businesses through the difficult challenge of separating relationships from responsibility.
Compensation decisions often carry emotional weight tied to history, expectations, and perceived fairness, making them far more complex than in non-family organizations. When pay isn’t clearly structured or communicated, it can quietly erode trust between family members and across the business. By addressing compensation with clarity and intention, families can reduce conflict and protect both their relationships and their company’s future.
Here’s where you’ll find the latest edition of UBS Family Office Quarterly
Read the full article below.
Connect with Kyler on LinkedIn.
