This is more tough than odd. Several scenarios could be played out.
The boss/brother are leveraging connections and influence. Perhaps try that game. It's a losing game, for you, to be competitive or attempt to exert control. Try something else. I'd suggest taking a step back either talk with the brother or the boss about goals for company and goals for the brother. Try to help him get it (manifest it with him--because I doubt the brother wants to work for you after 5 years- he may have ideas/dreams).
If you can, shuffle him to another job or part of the team or create a new job title. Heck, if he's earning more than you, move him along. Just don't be in charge of him. That would allow you to do your job without extra eyes on you for how you are as a manager. You may have to compete with him if he's made equal to you, but it's likely better than the situation you're in.
If there's any way to just deal with him [as a nuisance], that's still a possibility. It may require a shift in mindset and managerial style, but it's part and parcel of working in a family company. If his performance/listening issues remain, perhaps stop explaining to him --and use a coaching approach with him (having him find the answers). Perhaps give him a responsibility. Give him clear instructions and expectations. See what he does. (It's possible the family knows the brother's style and hopes he learns).
Try whichever new approach for a couple of months. If there's good change then great---and yep, you'll have to swallow that pill that he earns more (it sucks and it likely has to do with the fact that he's family and a newer hire after you). If there's no/bad change, move him. If it gets toxic, you move, but I don't think you need to at this point.
I wish you the best of luck.
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