78: Compensation in Family Business: Challenges and Strategies

Host Aileen Miziolek speaks with Gerry Meyer about navigating the complexities of compensation in family enterprises through the lens of the three-circle model. Their conversation explores the tension between fairness and equality, the importance of role-based pay and formal policies, and how remuneration differs across the business, ownership and family systems.

 

All views, information, and opinions expressed during this podcast are solely those of the individuals involved and do not necessarily represent those of Family Enterprise Canada.

 

Guest bio

Gerry has over 40 years of experience in all aspects of business strategy, organizational culture and design, business transition/change management, and Human Resources, as both a practitioner and an advisor, with the last 20 years focused exclusively on family enterprises. He provides advisory services to family enterprises in Canada and the U.S. to founding, active, and next-generation families and non-family executives, covering family,
ownership/shareholder and business governance, family dynamics and communication, family vision and values, family constitutions, next-generation development for succession/continuity planning, and optimizing existing family and organizational culture and structures.

 

You can learn more about Gerry Meyer on LinkedIn and on the Blackwood Family Enterprise website.

 

Key Takeaways

[0:23] Aileen Miziolek welcomes Gerry Meyer and launches the episode by asking him to start the conversation with his perspective on compensation within the lens of the three circles model.

 

[2:07] Gerry acknowledges that compensation is a very complex and delicate subject and that the three circles model can effectively structure the conversation.

 

[3:02] Gerry touches on how the business circle offers the first way to look at the three components of compensation for family members as well as outside parties.

 

[7:41] The equal versus fair perception in family dynamics often drives compensation decisions, and this can lead to difficult outcomes.

 

[9:47] Gerry shares an example from his practice that illustrates the trap of equal remuneration.

 

[12:44] Gerry’s bias: pay for the role. He offers a few resources to pinpoint the fair market value of a role.

 

[15:06] Formality is your friend. This saying of Gerry’s enables enterprise decisions to remain policy-driven as opposed to people-driven.

 

[16:20] The ownership circle offers a different kind of conversation when it comes to remuneration for people who are active in multiple roles.

 

[21:22] Gerry shares an example of multiple-tier remuneration and dividend allocation from his own practice.

 

[24:11] When it comes to the family circle, Gerry prefers to talk about remuneration versus compensation. He explains why.

 

[26:45] Gerry’s thoughts on family counsel member remuneration, knowing that every family is different, and what works in one might not work in another.

 

[29:49] Gerry will be speaking at Symposium 2026 in Vancouver, where he will discuss managing family member performance.

 

[30:54] Aileen Miziolek thanks Gerry Meyer for sharing so much of his knowledge and invites listeners to sign up for Symposium, which will be held May 25‒27 in Vancouver, BC.

 

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Mentioned in this episode

Symposium 2026

 

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