How to establish a fair and equitable remuneration policy for your family farming business

摘要

The basis for remuneration, distributing drawings and covering expenses can be a cause of conflict and dispute in a farming enterprise. This problem is often exacerbated when new family members enter the business or when the personal circumstances ofone of the business owners change, such as a marriage or the birth of children. The best way to resolve any potential difficulties is to establish a fair and reasonable remuneration policy, so that all stakeholders know the rules and conditions from theoutset.Once in place, the remuneration policy should be reviewed at least annually. Any amendments or updates should be reached as a consensus of the management teamA process for reviewing and approving remuneration levels should be established. For instance, unanimous approval may be required to establish or change the remuneration policy.