DIRECTOR’S COLUMN: Family Business Compensation: “How to Pay or Not to Pay”...That is the Question W. Kent Lutz, Director Please Consider Becoming a Member of the Goering Center… We Need Your Support If you were to ask several members of There are constant challenges on how to ups and downs of the business cycle. a family employed by their family busi- pay family members and how to distin- No foolproof compensation policy ness how they were paid, what kind of guish their role as employees, sharehold- exists to satisfy every unique need that a response do you think you would get? ers, and loved ones. The more systematic families in business have, but there are Would it be something like,“We all receive a compensation plan is that encourages steps that can be taken to develop a good whatever the market rate is for the job professional growth, the more value it compensation plan that keeps everyone we perform,” or “Our business involved in the business work- only pays family members for the ing for what is best for all. actual job, not the person, because Developing a family philos- he or she is a family member.” If Importance of Shareholder Agreements ophy for compensation is the you were to probe a little further in Succession Planning................................page 2 summation of the values, goals, with the individual family mem- and principles held by the fami- bers into what they actually were Telemarketers,Faxes and Spam! Oh My! Legal ly, and represent the guiding paid, you might uncover a dif- Limits on Unwanted Communications......page 3 principles that lead to a sound ferent answer. It might be that Fee-Based or Commission-Based: policy. For example, does the one son actually received $80,000 Choosing a Financial Planner 101 ..........page 4 company focus on creating compared with $40,000 earned by shareholder value? If they do, others in the same job. It could be Breakfast Series Registration Form ........page 4 this philosophy emphasizes explained by the father that his 2004 Family Business of the Year profit maximization which son does a good job and after all Nomination Form ..........................................page 5 translates into hiring and oper- “he is family.” The second son ating at the lowest possible costs, Luncheon Series Registration Form........page 6 might have received a mid-year and charging the highest prices raise because his wife gave birth the market will bear. On the to their first child and she had to quit her adds to the strategic direction of the other hand, a business’s philosophy may full-time job. After all, the father felt he business and discards the notion of be to create the best possible opportunities had to make up for their lost income. paying for other emotional purposes. and environment for all employees, which The third child employed in the business, There are a number of common translates into more attractive pay, ben- a daughter, also received a mid-year raise, causes for family business compensa- efits, and perks in order to encourage high because, according to her father, she, and tion problems. The list may be long, performance and improved productivi- her closest in age sibling were always very but here are ten that seem to stand out: ty. Still other businesses may put service competitive, and “after all, since he received 1) Confusing roles between job to the customer as first and foremost, a mid-year raise, she needs to get one also, responsibilities and ownership. which results in attracting customers by so their pay is equal.” Does this sound all 2) Using compensation to achieve tax offering low priced, high quality products too familiar? Well, I’m sure it does, because savings. or services, so that such a strategy will compensation tends to be at the heart of 3) Using compensation to maintain allow the business to grow, create new more family business questions than parental control. jobs, and earn higher returns for the any other issue, except succession. 4) Using compensation to resolve shareholders. No two businesses will adopt Compensation is an immediate and emotional issues. the same values and guiding principles, tangible symbol of the family business’s 5) Preserving secrecy at all costs. but one thing is certain, when developing multifaceted relationship with the family 6) Confusing business and personal funds. a compensation policy, ideally it should members and others it employs. It is very 7) Taking relationships for granted. be consistent and market driven. easy to confuse a paycheck with a return 8) Using salary substitutes such as The following steps may be helpful on ownership, parental concern, or ways titles or perks to appease unhappy in building a quality compensation plan: Ph: 513.556.7185 of achieving emotional goals. This con- family members. 1) Develop a family philosophy to Fax: 556.6044 fusion can send a mixed message that can 9) Paying everyone too little or too much. email@example.com continued on page 6B impact both the business and the family. 10)Using compensation to smooth the www.goering.uc.edu A Supplement to the Business Courier • April 16, 2004 2B April 16, 2004 A Supplement to the Business Courier GOERING CENTER Importance of Shareholder Agreements in Succession Planning Christopher J. Kramer, Deloitte & Touche Suppose you own a successful cor- unwanted ownership, and perhaps 4. Combination Book Value with definition of “earnings.” poration with a close friend whose most importantly, create a blueprint Capitalization of Earnings If an appraisal approach is used, spouse is also involved in the busi- for stock ownership that avoids a sig- 5. Appraisal consider a mechanism for identifying ness. Although you have a decent nificant disruption in the manage- If a fixed price dollar value per the independent appraiser, determin- working relationship with your ment of the business during what share is used, the established price ing who should participate in the friend’s spouse, he or she has never typically is a very chaotic period. may become quickly outdated. A election process, and deciding how demonstrated an ability to make Shareholder agreements can be mechanism should exist to use an frequently appraisals should be con- sound business decisions. structured in several ways: alternative valuation method if the ducted. Also consider the specific You can imagine what might 1. Stock redemption agree- agreed price is not current. valuation techniques that should be happen if your friend’s stock ment: an agreement The book value per share deter- applied in determining the value of ownership is transferred to between the business and mined with reference to financial the entity or specific assets. If the his or her spouse in the the individual owner. accounting records also might not be agreement calls for the use of more event of your friend’s death. 2. Cross purchase agree- satisfactory, since it might not take than one appraiser, determine how Would it be possible for you ment: an agreement into account going-concern value and disputes on value may be resolved. to successfully continue run- between the individual asset appreciation. The book value The appraisal approach is typically ning the business with your owners. per share method may be adjusted by the more expensive option and a new 50-percent partner? 3. Third-party buyout agreement: an segregating the items which can be determination of who will bear the Now suppose you own a minority agreement between the individual separately valued. cost of the appraisal should be made interest in a closely held manufactur- owners and key outside individuals. The capitalization of earnings prior to drafting the agreement. ing business. The value of your inter- 4. Hybrid agreement: a combination approach averages earnings over a Regardless of the valuation est in that business is significant, and of the above. specified period of time, then applies method used, the stock buyout is typ- you are reliant on that value to ulti- mately fund your retirement and pro- vide an inheritance to your heirs. Shareholder agreements...are contracts drawn by legal counsel that establish a Since the company’s stock is not pub- licly traded, what happens if upon procedure for buying out an ownership interest in a closely-held business, your retirement, no one purchases your stock? Consider as well what may happen to your retirement and Key to any of these types of agree- a multiplier established by the antici- ically self-funded by the corporation estate plans should you receive an ments is the stock buyout price. But pated return on investment. If this or individuals, or may be funded with offer to buy your stock at a price far that price is often difficult to deter- method is used, consider the business insurance proceeds. below what you feel it is worth. mine. There are five options from may not have had a successive num- For any business, a change in own- These scenarios occur with frequen- which to choose, and each has its ber of “normal” years. Also consider ership is inevitable. A well construct- cy. There is, however, a relatively easy advantages and disadvantages: three factors for the capitalization ed shareholder agreement can limit remedy: shareholder agreements. 1. Fixed Price Per Share method: the period over which earn- the disruption that accompanies such Shareholder agreements -- also 2. Book Value Per Share ings are to be computed; the appro- a change, helping the business, its known as buy-sell agreements -- are 3. Capitalization of Earnings priate capitalization rate; and c) the customers and employees adapt. contracts drawn by legal counsel that establish a procedure for buying out an ownership interest in a closely- held business, triggered by a specific The Goering Center 22nd Member Breakfast Series – May 2004 Norwood Quality Inn – 7:30 a.m. event. The events that are typically Calendar of Events Paul Bransford and Lynn Mangan considered when designing share- 11th Next Generation Institute – Session 7 – 7:30 a.m. Generational Transition holder agreements are death, retire- April 2004 Topic: Estate Planning ment or disability of a shareholder. 30th Family Business of the Year Applications Due 20th Next Generation Institute Steering 18th Next Generation Institute Steering Shareholder agreements, when Committee Meeting Committee Meeting 27th Family Business Executive Luncheon Series – properly designed and implemented, Norwood Quality Inn – 11:30 a.m. 27th Member Breakfast Series – 25th Family Business Executive Luncheon Series – benefit the business and the share- Speaker to be announced Norwood Quality Inn – 7:30 a.m. Norwood Quality Inn – 11:30 a.m. holders in many ways. Since closely Tim Shepelak,The Growth Coach with Tim Mike LaRosa and T. D. Hughes, LaRosa's, Inc. held businesses are not publicly trad- Neihaus, third generation owner of the August 2004 ed, shareholder agreements create a Miami Corporation “Are You Facing Reality” June 2004 24th Family Business of the Year Event guaranteed market for that closely 30th Family Business of the Year Nominations Closed Cincinnati Music Hall held stock. A valuation method or a 4th Board of Advisors Meeting 6:00 – 9:00 p.m. value per share is also established. In 8th Next Generation Institute Retreat and Graduation addition, shareholder agreements lend certainty to the disposition of Please call the Center at 513-556-7185 if you would like additional information on Center membership, or visit our web site at www.Goering.uc.edu. the business, eliminate the risk of Publisher’s Note: The Family Business Report The Goering Center The Family Business Report is a Sidney L. Barton, Ph.D. W. Kent Lutz M. B. Hammond for Family & Private Business monthly advertising supplement to Executive Director Director Editor (513) 556-7185 the Business Courier in cooperation E-mail: firstname.lastname@example.org with the Goering Center. Website: www.Goering.UC.edu A Supplement to the Business Courier April 16, 2004 3B GOERING CENTER Telemarketers, Faxes and Spam! Oh My! Legal Limits on Unwanted Communications John P. Colbert, John C. Greiner, and Brian C. Thomas, Graydon Head & Ritchey LLP Small businesses these days fre- in, property, goods or services. law on Jan. 13, 2004. ing of “junk faxes” is illegal in all 50 quently find themselves inundated Calling or leaving a message for any states. In addition, any state law provi- Q. What does it do? with communications - many uninvit- person with whom the caller has an sions that are more restrictive than A. Ohio’s Do-Not-Call legislation author- ed. Whether it’s telemarketers’ calls, fax established business relationship is federal law are not preempted. This izes Ohio’s Attorney General to: file advertisements or the ubiquitous e- not a telephone solicitation. means that states can establish addi- suit against violators in state court, mail messages offering any number of tional restrictions on top of the TCPA Q. What does it prohibit? enforce state and federal telemarket- unwanted items, these unsolicited restrictions. At the present time, nei- A. The TCPA prohibits tele- ing laws, conduct investigations, take transmissions are a drain on ther Ohio nor Kentucky has enacted marketers from soliciting telemarketing violations to the appro- time and resources. On the state laws relating to junk faxes. an individual after that priate court on behalf of Ohio resi- other hand, advertisers need individual requests that dents and recover damages or civil Q. How is the law enforced? to sell goods and services, his telephone number be penalties. The law also creates the A. The federal law provides a “private and they certainly wish to use placed on the company’s Telephone Solicitation Protection right of action.” That is, the TCPA all available media to do so. do-not-call list. A tele- Fund in the state treasury where permits an individual to sue the junk State and federal lawmakers marketer violates the civil penalties will be deposited to faxer in court. Using this law, recip- have attempted to balance the TCPA if the telemarketer pay the Attorney General for the ients can collect damages of at least needs of recipients not to be solicits a listed individual costs associated with investigating $500 per junk fax. Willful or know- bothered with the needs of more than once during and enforcing the law. The law will ing violations can bring damages of advertisers by passing a variety any 12-month period. go into effect on April 12, 2004. up to $1,500 per junk fax. Recipients of laws. Whether these laws Unlike the National Do can also file a complaint with the FCC are successful is subject to Not Call Registry, individ- (www.fcc.gov/cgb/complaints.html) debate, but it is beyond ques- Careful,That Fax May Cost You $500 uals cannot register in one and/or file a complaint with your tion that more tools now exist In addition to banning telephone location. Rather, individ- state's attorney general. Recently, to fight unwanted communi- solicitations, the TCPA also makes it uals must inform each Hooters of Augusta hired a fax service cation than ever before. How illegal to send junk faxes to business company that they wish to that sent six unsolicited junk faxes to recipients will exercise those and residential fax machines. be placed on that compa- each of 1,321 fax numbers. A class tools, and how advertisers will ny’s do-not-call list. Q. What does it cover? action TCPA case was brought against respond, are questions that will A. “Unsolicited advertisements” or “junk Hooters and the court ordered Hooters be preeminent in the coming Q. What does it require? faxes.” The term “unsolicited adver- to pay treble damages of $11,889,000. months and years. This arti- A. Once requested, a telemar- tisement” is defined as any material cle outlines the laws covering keter must place an indi- advertising the commercial availabili- the three most ubiquitous vidual’s name on its do- Has “SPAM” Met its Match? ty or quality of any property, goods, communications -- telemar- not-call list and honor The recently enacted federal law or services which is transmitted to any keting calls, faxes and e-mails. that request for 10 years. known as “Can-Spam” does not pro- person without that person's prior Weary recipients should hibit sending spam. Rather, the law, Q. Are there any defenses? express invitation or permission. know their rights, and advertisers which took effect on Jan. 1, 2004, seeks A. The TCPA provides an affirmative should be careful not to inadvertently Q. What does it prohibit? to eliminate deceptive and misleading defense to liability for telemarketers. trip on the new regulatory landscape. A. The TCPA prohibits and makes it e-mails and provides consumers with For example, it is a defense to liabil- unlawful for anyone to use any fax an opportunity to “opt out” of receiv- ity if the telemarketer has estab- machine, computer or other device ing additional e-mail messages. When“Do-Not-Call”Means Do Not Call lished and implemented, with due to send a junk fax to a fax machine. Many view the recently developed care, reasonable practices and pro- Q. What does it cover? These protections apply to both National Do Not Call Registry as the cedures to effectively prevent tele- A. Unsolicited commercial e-mail mes- individuals and businesses. government’s first attempt to curb the phone solicitations. sages (UCE). “Commercial” means barrage of telemarketers. However, Q. What does it require? any electronic mail message whose Q. What about state law? many are unaware of the federal law A. To be illegal under the TCPA, a fax primary purpose is to advertise or pro- A. The federal law does not preempt or passed in 1991 banning telephone must be unsolicited and advertise the mote a commercial product or service. supersede state laws that impose more solicitations, the Telephone Consumer commercial availability or quality of This definition thus excludes chari- restrictive intrastate requirements. Protection Act (TCPA). Unlike the property, goods or services. Generally, table, religious or political messages. National Registry, which can impose Q. How is it enforced? a fax advertiser has an obligation to Q. What does it prohibit? fines against offending companies, the A. The federal law provides a “private obtain prior express consent from A. Sending UCE that contains materially TCPA provides citizens with a private right of action.” That is, the TCPA the recipients of its advertisements, false or misleading header informa- right to sue violating telemarketers. permits an individual to sue the and to keep and maintain records tion (that misleads as to the origin That means ordinary citizens can sue telemarketer in court. If successful, of such consent. Consent may not of the message) or misleading sub- telemarketers if the citizen receives a the individual can recover the be inferred from the mere distribu- ject information (that misleads as to call after he has previously requested greater of actual monetary loss or tion or publication of a fax number, the subject of the e-mail’s content). that his telephone number be placed $500 in damages for each unlawful or the existence of a previous busi- on the company’s do-not-call list. telephone solicitation. However, if ness relationship between an adver- Q. What does it require? the court concludes that the tele- tiser and the recipient, in the Q. What does it cover? A. The UCE must contain a valid, marketer’s violation was “willful” or absence of specific evidence of A. Telephone solicitations. The term functioning return e-mail address “knowing,” the court can assess tre- “prior express invitation or permis- “telephone solicitation” is defined as that allows the recipient to opt out ble damages up to $1,500 per tele- sion” to send advertisements by fax. the initiation of a telephone call or of receiving further e-mails. The phone solicitation. message transmitted to any person Q. What about state law? UCE must also identify itself as an for the purpose of encouraging the Q. Does Ohio have a Do-Not-Call law? A. The federal law preempts, or super- purchase or rental of, or investment A. Yes. Ohio enacted a Do-Not-Call sedes state laws. That means that fax- continued on page 6B 4B April 16, 2004 A Supplement to the Business Courier GOERING CENTER Fee-Based or Commission-Based: Choosing a Financial Planner 101 Bob Moore, Gradison McDonald Financial Group Many people find the task of choos- mutual fund firm may suggest you put There are three types of commission an objective and neutral viewpoint ing a financial planner somewhat your money and trust in mutual funds. payments: than those who are inclined to recom- daunting. However, it is one of the While one of these solutions may, in • one-time sales rewards, such as mend those investments that offer most important decisions a person can fact, be right for a particular investor or mutual fund “loads” or the upfront them the highest commission. make.–What do you need to know family, each may be only part of the payments that come from selling Fortunately, investors can now resolve about choosing the right financial picture that you should examine before annuities and cash-value life insur- any confusion they may be experiencing advisor for your needs? deciding on the best financial plan for ance policies, about all this, now that structural changes The ideal financial planner your future. A financial services • ongoing, annual service payments, in the financial services industry have is a trained, experienced pro- provider who offers a broad such as those made to insurance allowed full-service banks to become fessional who inspires trust range of options is more likely agents upon policy renewal and convenient, comprehensive conduits and demonstrates the highest to meet all your needs over your • those paid for such transactions as for investment services. level of competence and lifetime, to understand your buying and selling shares of stock. For example, Key combined the integrity. His or her role in a risk tolerance and goals, and Other planners are paid fees based capabilities of its Key PrivateBank family’s finances is as crucial truly to act as a trusted advisor. either on a percentage of a family’s total organization (which has roots that go as that of a family attorney. In addition to differing in assets or on just those funds the plan- back well over a century) with the Like attorneys or other terms of the range of solutions ner manages. This is the most common capabilities of the retail brokerage busi- professionals, some financial planners they can provide, advisors also differ in form of payment for independent ness of its McDonald Investments specialize in certain areas – insurance for how they are compensated. The ideal financial planners. organization to create Gradison instance. The upside of this approach is financial planner is the professional whose Some planners are paid fees based on McDonald Financial Group, which that the advisor is highly knowledgeable personal financial incentives best match an hourly rate, like those paid to a lawyer. offers truly integrated solutions. Unlike about that particular product. The chal- those of his or her customers. In other Others receive an upfront payment for many firms, where commission-driven lenge is that a specialist may have a rather words, you want an advisor who gets developing a financial plan, including an salespeople compete, Gradison limited focus. For example, a financial paid for doing a good job for you, not inventory of assets and a plan of action. McDonald Financial Group examines planner at an insurance company may for selling particular products. Planners who are paid on a fee basis an investor’s circumstances from every focus on offering insurance products as Financial planners are paid commis- are better positioned to advise cus- a solution to your financial needs. A sions, fees or a blend of both. tomers about investment options from continued on page 5B A Supplement to the Business Courier April 16, 2004 5B GOERING CENTER Financial Planner...continued from page 4B angle and offers a broad, integrated customers to implement the strategy ing, trust and insurance. The result Bob Moore is Managing Director of Gradison and objective perspective that encom- and monitor its effectiveness. will be a comprehensive, neutral, cus- McDonald Financial Group. His office is at 580 Walnut Street and he may be reached at 579.5089 or A financial services provider who offers a broad range of options is more email@example.com. likely to meet all your needs over your lifetime, to understand your risk Choosing a financial advisor is a complex process at tolerance and goals, and truly to act as a trusted advisor. best. It requires an understanding of the range of serv- ices available and their particular advantages. As a helpful starting point, Bob Moore explains fee-based and commission-based investment services and rec- passes banking, brokerage services, This approach has generated such tomer-oriented approach that puts ommends an efficient pathway toward choosing trust and insurance products. remarkable loyalty and trust that fami- you in control of the “big picture.” which is right for you: Marcia Hagler, 762.8464 Clearly, the advantage of such broad lies often maintain client relationships service and product offerings is neutral- over several generations and the span ity. A financial planner can focus on an of decades. The Goering Center Elroy E. Bourgraf James Funch, Jr. individual client’s needs rather than be The changes in federal regulations Advisory Board Dean R. Gaudin motivated to sell a particular commis- that made it possible for full-service sion-rich product. This neutral banks to provide customers with a Richard D. Hannan approach begins with the BluePrint more complete array of services and John B. Goering, W. Kent Lutz, Lynn Mangan financial plan, a comprehensive prod- advice have significant implications Chairman Director John Steele, Jr uct-neutral procedure that moves from for consumers. When planning for Sidney L. Barton, Ph.D., Frederick A.Russ,Ph.D., Executive Director Molly Vollmer an objective analysis of an investor’s your financial future, seek out a Dean current situation and long-term goals financial services provider that can Steven A.Wilson to a practical strategy to meet those help you create a broad investment Board Emeriti: goals. Gradison McDonald Financial framework that takes into account Marty Betagole / Otto Budig, Jr. / Thomas L. Neyer, Sr. / Bill Rice, Sr. / Jeffrey L.Wyler Group planners work closely with their fee-based investment services, bank- 2004 TRI-STATE FAMILY BUSINESS OF THE YEAR AWARDS Nomination Form: FBOY 2004 August 24, 2004 • 6-9 pm • Music Hall Simply fax this completed form to the Goering Center office at (513) 556-6044. To honor the enormous positive contributions made by family companies, both large and small, the University of Cincinnati and the Goering Center for Family & Private Business are pleased to announce the 5th annual Tri-State Family Business of the Year About the Nominee.. Awards. The competition will work as follows: Nominees will be judged on the Company Name ______________________________________________________ basis of their positive family-business linkage, their business success, their multiple family member and/or multiple generation involvement, their contributions to commu- Address ____________________________________________________________ nity and industry, and their innovative business practices, products or strategies. City/State/Zip ________________________________________________________ Awards will be granted in four categories: Phone ______________________________________________________________ • Under 100 employees • Innovation (Products, Markets, Organizational) Fax ______________________________ E-mail __________________________ • Over 100 employees • Community Service Principal Owner ______________________________ # Employees ____________ The nominations and judging will take place in two steps. Nominations may be Principal Product of Service ____________________________________________ submitted by anyone and businesses are encouraged to nominate themselves. Nominations are due by April 30, 2004. Once a nomination is received, a detailed application will be sent to the nominated businesses, which must be returned by About the Nominator... June 30, 2004. All applications will be reviewed by a panel of independent judges Name ______________________________________________________________ from various professional disciplines and by owners of family businesses. Company ____________________________________________________________ Rules for Nominations Address ____________________________________________________________ 1. Businesses must be headquartered in Ohio, Kentucky or Indiana. 2. A business may be nominated by anyone, including employees or business associates, City/State/Zip ________________________________________________________ or by self-nomination. Phone ______________________________________________________________ 3. All family businesses are eligible. 4. All nominations must be recieved by no later than April 30, 2004. Fax ______________________________ E-mail __________________________ 5. Awards will be given in the following four categories: What is your association with the family business you are nominating? ______________ • Under 100 employees • Innovation (Products, Markets, Organizational) ____________________________________________________________________ • Over 100 employees Deadline for submitting nominations is April 30, 2004. An application will be forwarded to the nominated business upon receipt of this completed nomination form. • Community Service 6. Applications sent to nominees must be returned by June 30, 2004. 6B April 16, 2004 A Supplement to the Business Courier GOERING CENTER Goering Center Members Able Services JANCOA Janitorial Services,Inc. A C Nielsen BASES Janell,Inc. Al.Neyer,Inc. Jeff Wyler Dealership Group Anchor Research,Inc. John D.Dovich & Associates,LLC Anderson Tool & Die John F.Dickey Co. Apollo Heating & Air Conditioning John T.Niehaus,LISW ASI Sign Systems/Cincinnati,Inc. Johnson Investment Counsel Astro Met Associates Kaiser Foods Aurora Casket Company,Inc. KDM POP Solutions Group Baldwin Employee Concepts Keating,Muething,Klekamp,P.L.L. Barnes,Dennig & Co.,Ltd. Kelly's Crafts,Inc. Batesville Products,Inc. Kennedy,Nelson & Co. Baumann Engineering,Inc. KeyBank Big Chief,Inc. Key Principal Partners Bridge Advisors,Inc. King Bag & Manufacturing Co. Building Crafts,Inc. Krombholz Jewelers Burd Brothers LaRosa's Inc. Burke & Schindler,P.L.L. LaSalle Bank Carstar Collision Center Leonhardt Plating Co. Cassady,Schiller & Associates Lincoln Financial Advisors Casco Manufacturing Solutions Mass Mutual - The Blue Chip Co. Cast-Fab Technologies Matlock Electric Charles F.Shiels and Company Mellott & Mellott,P.L.L. Cincinnati Growth Partners,LLC Mench Financial,Inc. Clarke Detroit Diesel-Allison,Inc. Mercury Instruments Clarke,Inc. Miami Rubber Company Clark,Schaefer,Hackett & Co. Modern Office Methods Clayton L.Scroggins Associates,Inc. Morgal Machine Tool Co. Contractors Materials Co. Multi-Craft Litho,Inc. Cors & Bassett,LLC Myers Y Cooper Co. Family Business Compensation...continued from page 1B Crowley's National Band & Tag Co. either pay family members equally need to be negotiated each year. business compensation strategy. Future CT Beach & Company,Inc. Natorp's,Inc. or base the compensation on the 7) Establish job classifications and crite- articles in this column or others in our D'Ambrosio,Inc.(Salons) Neal's Construction Co. Dalton Roofing Company Neiheisel Plumbing,Inc. market value of their jobs. ria for assessing performance. Family Business Report will speak fur- Deloitte & Touche Northwestern Mutual Financial 2) Determine the market value of par- 8) Determine if you want a longer-term ther to compensation matters. We hope Network Derrick Company,Inc. NSG,Inc. ticular jobs. incentive plan. if you have some specific questions Donahue & Associates O’Brien Group 3) Determine if positions only will be 9) If a longer-term incentive plan is about your own situation, that you will Down Lite International Dudley Construction Co. Officeware paid at the average of the market established, what will be the criteria call us at the Goering Center at 513- OT S Dwyer Insurance Agency,Inc. value, or above, or below the average. for awarding special compensation- 556-7185. We have resources to help Overly Hautz Company Eagle Custom Homes 4) Adjustments to pay may reflect qual- book value increase, profit growth, etc. you in a variety of ways. Please also Patrick Nesbitt Employee Capital Solutions Excel Management Consulting Paul Hemmer Companies itative characteristics of the position 10) Communicate clearly to everyone remember, that we would like you to Payne Firm,Inc. as it relates to its strategic impor- the company’s philosophy on com- consider becoming a member of the Family Wealth Advisory Group Pembaur Homes and Remodeling Feilhauer's Machine Shop,Inc. Phymet,Inc. tance to the company. pensation and your plan to review Center. Membership in the Center Fenton Rigging Co. Ferno-Washington,Inc. Pilot Contracting,Inc. 5) Determine if you want to offer an the policy every year. offers many benefits, and it’s an impor- Findlow Filtration,Inc. PNC Advisors annual incentive plan based on per- We have only touched on a few issues tant part of our financial support. We Positrol,Inc. Fifth Third Bank sonal goals and/or performance. that need to be addressed when evalu- stand ready to serve you in any way we Precision Coil Spring Florence Hardware Provident Financial Advisors 6) Personal goals and pay incentives ating and developing a sound family can. Until next time…….WKL Flottman Printing Prus Construction Food Specialties,Co. RED Forshee Industrial Roofing Sheetmetal Work Rim & Wheel Service,Inc. Unwanted Communications...continued from page 3B Frankenberg & Associates Robert Lucke Homes advertisement, clearly and conspic- while a state could pass a law ban- Many consumer advocates were dis- Funch Lumber Company Rosselot Financial Group,Inc. Gardner Publications Scherzinger Corporation uously provide notice of the recipi- ning e-mail with deceptive headers, appointed by the Can-Spam Act. They Gateway Concrete Schiff,Kreidler-Shell ent’s right to opt out, and provide a it could not pass a law banning all would have preferred a ban on unso- Gilson's Singer Wallcovers valid physical postal address. commercial e-mail. licited commercial e-mail, or at least a Global Underwriters,Inc. Star Moving and Storage procedure where the sender first had to Goering & Goering Business Brokers of N KY Gold Medal Products Co. The Angus Group Ltd. Q. Can I make the UCE stop? Q. How is the law enforced? obtain the recipient’s permission before Graeter's,Inc. The Child's Center A. If the recipient exercises the right A. The federal law does not provide a sending the e-mail. But advocates of Graydon Head & Ritchey,LLP The Global Consulting Partnership to opt out, the sender may not, “private right of action.” That the act feel that it targets the “bad Great American Marketing The Greater Cincinnati Foundation Company The Gorilla Glue Company more than 10 business days after means that an individual recipient guys” and provides consumers with the Greater Cincinnati Chamber the receipt of such a request, send cannot take a sender directly to opportunity to limit the amount of of Commerce The Imbus Roofing Co.,Inc. Greenfield Products The Lumley Group,Inc. UCE that falls within the scope of court. Rather, the power to unwanted e-mail they receive. The Griffin Industries The Verdin Company The Walt Lunsford Financial the request. The “opt out” applies enforce the act is left to the FTC open question of course is whether it H & S Chemical Co.,Inc. H.J.Benken Greenhouses Advisory Group of Advest,Inc. not only to the “sender,” or the entity and certain other federal agencies, will actually work. The Wise Group Hamilton Caster & Manufacturing Co. whose product is being promoted, state attorneys general, and inter- (Please remember, this article is not The Wolfe Practice,LPA Hart Industries Trans-Borders Technology but also to any person “acting on net service providers. The FTC intended as a substitute for legal advice. Hart Productions Truitt Roofing Company behalf of the sender.” Thus, a ven- can seek a fine up to $11,000. In The specific facts that apply to your Hilltop Basic Resources,Inc. Unistrut Cincinnati dor who actually delivers the e- an action by a state attorney gen- matter may make the outcome differ- Holland Communications University of Cincinnati Horan Associates Inc. College of Business mail also needs to comply with the eral, statutory damages can total ent than would be anticipated by you. Huber Lumber Company U S Bank recipient’s opt out request up to $250 per violation, but this You should consult with an attorney ILSCO Corporation Verst Group Logistics Indrolect Company Vinylmax LLC amount may be tripled if the familiar with the issues and the laws.) Information Management Wardway Fuels,Inc. Q. What about state law? sender acts willfully, or commits Solutions Interlube Corporation Whetstone Management A. The federal law preempts or super- certain other aggravating acts, as John Colbert, Jack Greiner and Brian Thomas are Wilson Assoc. Financial Group Invesmart,Inc. sedes state laws, except to the extent defined in the statute. In any suc- attorneys with Graydon Head & Ritchey LLP in the Wm.Kramer & Son,Inc. J.D.Cloud & Co. Woodlawn Rubber Co. that the state law prohibits mislead- cessful enforcement action, attor- Commercial Litigation Department. They can be Jackson,Rolfes & Spurgeon & Co. ing or deceptive content. Accordingly, ney fees may be recovered. reached at (513) 621-6464.
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