Understanding the nature of family representation in public firms has been an important topic for entrepreneurship research. Because CEO compensation is a key tool that boards use to align the interests of shareholders and managers, researchers have taken steps toward understanding how family representation affects CEO compensation. Prior research has painted family-member CEOs as stewards who accept lower compensation. Based on agency theory, we describe a different scenario wherein family representatives engage in strategic control that reduces family-member CEOs' compensation. Thus, family-member CEOs accept lower compensation only when additional family members are represented in management or on the board. In comparison with CEOs at nonfamily firms, we find that family-member CEO compensation is 13% lower when multiple family members are involved, but 56% higher when the CEO is the lone family member.