Why Your Family Business Needs Family Members on the Board

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If family representation is missing from the board, it's difficult to align the priorities of the owners with those of the company in a sustainable way.

In this new context, enhancing the capacity of family company boards with independent and family directors capable of collaborating effectively to add value for both shareholders and senior management has become a strategic imperative. Many family business owners have consequently moved to upgrade the function, composition, and processes of their boards.

While, technically, all directors are equally accountable to shareholders, family directors are often called upon to fulfill a unique set of functions that only they can typically play — precisely because they are members of the owning family.

Consider the case of a fourth-generation family business board that was wrestling with how to attract and retain top millennial and Gen Z talent in the post-Covid era. The non-family CEO, with the backing of several independent directors, advocated for a fast return to pre-Covid work schedules, insisting that everyone physically return to the office. Aside from increasing infection risk, this stance made recruitment of badly-needed younger employees much harder.

 

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Brilliant idea using Russian dolls here

So, you wont cancel Matryoshka?

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