Last November, I offered some reflections regarding what family shareholders deserve from their family business. This article takes the opposite approach: what do family businesses deserve from their family shareholders? The answer is clear: responsible and efficient performance. As is often the case, this is easier said than done. Let’s start with the essence of […]
What do shareholders of family firms deserve?
As family businesses transition across generations, a distinct type of shareholder emerges: one who only own shares while playing no role on its executive board or leadership team. The concept of responsible and committed ownership has increasingly gained traction in recent years, guided by the principle of stewardship. This vision underscores the critical need for […]
Evolving perspectives on ownership in family firms
In traditional economic-based views on governance, owners are often portrayed in a somewhat passive role, with an emphasis on the incentive structures they install to motivate employees and other key stakeholders. Under these frameworks, owners provide financial resources, while management–driven by the right incentives–execute day-to-day operations to create value. Yet this perspective fails to fully […]
The family in business
Family businesses always have an owner family as the shareholder of reference. This is the family that defines the company’s purpose and transforms family values into corporate values. This is the family that serves as a beacon of unity and commitment, transmitting a sense of corporate stability and long-term continuity. Hence, the importance of developing, […]
The voice of minority shareholders in family-owned firms
Family-owned firms dominate the global economy: according to PwC’s latest Global Family Business Survey, they contribute more than half of the world’s annual GDP and generate around two-thirds of employment. Their strength is also seen in new business ventures: 85% of start-ups are launched with family money. As outlined in a previous post, an important […]