Case 3: Fair and reasonable compensation vs. self-sacrifice

Three brothers shared equal ownership of the family business. Two brothers worked in the business while the third pursued a separate career. One of the brothers decided to reduce his salary by 15 percent because performance in his division had not lived up to expectations due to market conditions. He had reduced pay for some of his personnel and thought it only right that he make the same sacrifice. We suggested he was creating an unnecessary hardship for his wife and children. We reasoned that the business could certainly afford to pay him more, that his level of responsibility had not been reduced, and that he had, in fact, done an outstanding job in turning the negative situation around and positioning the company for success. Our arguments, however, failed to change his decision.

The second brother, whose division was doing well, decided to reduce his salary as a sign of solidarity. At this point the third brother, who worked elsewhere but received a company dividend, conveyed how much he valued and trusted his siblings and implored that they be compensated amply because they were carrying the weight.

The three brothers’ discussions regarding compensation revealed the values shared by all three family members. Siblings who learn to manage their rivalry issues often experience closer, more trusting relationships that become an important business and personal asset.