【Family Business Incentive Trust】

Mr. Qian owns a food processing enterprise, classified as a family business.
With numerous family members involved at varying levels within the company, its growth has brought the second generation to the forefront as key contributors.
However, internal differences have emerged concerning business management, decision-making, and profit distribution.
Recognizing the need for a scientific and reasonable mechanism to incentivize family members while balancing interests, Mr. Qian aims to ensure the long-term development of the business.

To achieve this, Mr. Qian transferred part of the company's equity into a trust.
The trust implements unique equity distribution rules, separating voting rights from income rights.
Key family members hold more voting rights to maintain control over major business decisions, while income rights are distributed based on each family member's performance within the company.

The trust establishes a performance incentive fund, which is financed annually by a percentage of company profits.
Family members achieving outstanding results in business operations, technological innovation, market expansion, or similar areas—such as launching new products, opening new sales channels, or reducing production costs—are eligible for additional rewards from this fund.

To enhance the professional capabilities and managerial skills of family members, the trust introduces a career development support program.
This program offers various professional training courses, including business management, marketing, financial management, and food technology development.
It also provides opportunities for promising family members to gain cross-departmental experience within the company and collaborate with external enterprises to broaden their horizons.
This holistic approach helps family members improve their abilities, allowing them to better serve the family business.

By establishing a family trust, Mr. Qian successfully revitalized the family business and fostered harmonious development.

Key Outcomes of the Family Business Incentive Trust:

1. Increased Engagement and Performance:
   Family members are motivated to contribute actively to the company's growth, resulting in improved operational performance and enhanced market competitiveness.

2. Equitable and Transparent Distribution:
   A fair profit-sharing mechanism reduces internal conflicts over financial interests, fostering harmony and collaboration among family members.

3. Sustained Family Control:
   The trust ensures that the family maintains control over the business, upholding family values and corporate culture.
   This lays the foundation for sustainable development and preserves the family’s business legacy.