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seia/wcill | I have one very good full time man that I would like to keep around until my retirement(15-20 yrs). He gets a base salary(living wage for area I would guess). Also gets a percentage of some rented acres and a percentage of livestock enterprise, with no machinery, fuel, repairs, ect expenses. He's going to have a pretty good year this year! Here's the dilemma, he has no retirement. This year he could afford to put some in, but with normal years not so much. I cant afford to pay him that good and still give retirement, keep upgrading machinery, ect. My thoughts were to incorporate the business(putting machinery only in corp), and give him 1% ownership per year of employment up to 12%. Silent party? This would reward him and give incentive to take care of things. Also involves him in the business more. Problems I can see are: 1) how to handle it if something happens to him before I retire. I don't want to buy the machinery a 2nd time, but need to be fair to his family(life ins?). 2) He gets a better offer. 3) He gets incapacitated.
I don't have a problem with him getting it at my retirement, death, incapacitation, ect. I just don't want to buy the machinery now AND later. I know there are many much easier options, but I also would like him to take over some day and this would give him an 'in' so to speak. At my retirement he could take over my best ground and buy a small, nice line of machinery to get him on through, he's about 10 yrs younger than myself. Thoughts? TIA | |
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Compensating hired hand..........
