Setting the Right Mix – Analyzing Outside Directors' Pay Mix in Public Family Firms

Part of the Familienunternehmen und KMU book series (KMU)


Outside directors' pay mix determines if and to what extent a firm's designated monitor is incentivized by means of performance related pay. Owning families of public firms, still having substantial influence on the compensation process, need to balance the family's genuine interest against PR pay and stakeholders' contrasting preferences in setting the right mix. At first, family and non-family firms show no difference regarding the adoption of PR pay. However, among PR pay adopters, we find family firms devote greater shares to this pay component, thus sacrificing part of their socioemotional wealth in order to meet stakeholders' demand. A differentiation between different types of family firms reveals that especially true family firms account for this particular behavior.


Income Expense Volatility 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Fachmedien Wiesbaden 2015

Authors and Affiliations

  1. 1.The Boston Consulting Group GmbHVallendarGermany

Personalised recommendations