Since the financial crisis, investors have become increasingly vocal about the size of executive pay and many companies have seen remuneration packages refused by shareholders at annual general meetings. Assume that you are on the remuneration committee of a 150-yearold family firm that has been proud of its family heritage for six generations of ownership. The company recently appointed its first ever non-family chief executive and the family shareholders are uncertain how they should structure her remuneration package. You have been tasked with putting together a sensible package that recognizes the specific objectives of the family but also the incentives required for an external non-family manager. Write a brief report to the board of directors on your proposed pay package, emphasizing its strengths and weaknesses.