Family offices increase incentive pay, report
Short-term incentive compensation at family offices in the US is on the rise, according to research from the US-based consultancy Family Office Exchange. The research found this type of compensation up 8% from last year, with the median expected award for office management positions up to just under 20% of base salary. The research also found that just 30% of participants currently offer long-term incentive plans, while C-suite employees who receive such benefits are enjoying median awards ranging from 20% to 50% of base salary.
In addition, the research found that nearly two-thirds of offices offer flexible working hours and work-from-home options. The research also found that 88% of participants expect to see their salaries increase in 2017. The median expected increase is 3%, the same percentage as the previous year. The research looked at compensation data from more than 150 family offices in the US, covering 900 employees across 25 different staff positions.
The second gen in China don’t want to take over
An illuminating insight into succession in China has recently been provided by one of the country’s biggest businesses, Dalian Wanda Group. Set up nearly thirty years ago by Wang Jianlin, the conglomerate, which operating malls, hotels, theme parks and the world’s largest chain of cinemas, is looking for a successor to Wang. But it’s unlikely to be a family member. Wang, who is also China’s richest man, said at a recent conference and reported in the South China Morning Post that his son is unlikely to take over. “I have asked my son about the succession plan, and he said he does not want to live a life like mine.”
Wang Sicong, 29, is a director in his father’s business and also owns shares in it. He also runs Prometheus Capital, an investment group, and has a big profile in China. Apparently, family succession is becoming a big problem in China. The SCMP article also quoted a piece of research done in 2012 by Shanghai Jiao Tong University, which found that 80% of Chinese heirs are reluctant to take on the reins of their parents’ businesses. Here’s a Viewpoint on succession in China, which discusses the particular features that make the issue so unique in the country.
Czech family business centre launched
A new family business centre has been launched to promote the sector in the Czech Republic. The centre will be linked to Prague’s University of Economics. The launch corresponded with a conference at the university on family businesses, which was attended by a number of senior Czech politicians as well as family business academics from around Europe.