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Second generation business what happens in a ...

Second generation business what happens in a second generation family when one person runs the business very successfully and the other family members wont pay him what he is worth working 65 hours a week min. And no other members work there


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50 helpful answers

"LEARNING is fundamental!"

God, Country, Self..in that order.

VISION, Change and Education=PROGRESS

Flint,

If he's working 65 hours a week minimum and none of the other members are working or contributing to the success, all members should meet to discuss payroll changes.  He needs to be prepared to ask for an amount that will give him satisfaction for his time.  Also, he should have another job lined up and be ready to give his notice if an agreement cannot be reached by a reasonable deadline.

I hope this is helpful.

Blessings,

~ nmpb ~

Posted 2009-11-04T06:50:10Z
 

Depending on how the business is organized (corp, partnership, etc) and the ownership stake of each of the participants this could be very tough.  Normally, you wouldn't have a vote on your own compensation, so you'd have to convince a majority of the others to increase it.  If they force your hand, you could go through the court system to force the sale of the company, but it's expensive and can take a long time.  Can you hire another person to help you without getting their permission?  I'm assuming they're all getting something financially from the business.  Is it possible for you to request a performance bonus based on the profits of the company?  If they're all making more from your efforts, they should be willing to do so, especially if it's tied to performance.  If all else fails, be prepared to threaten to walk away, so that no one will make any money!  That might bring them up short.  Good luck!!  Family business dynamics are always tricky.

Posted 2009-11-13T16:36:42Z
Eva Norris, enrolled agent was invited by Yedda to answer this question.

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