Investing in growth with smarter boards in family firms
Family owners should use independent directors as a resource to help their companies reach the next level.
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IN Asia, where most publicly listed firms are controlled by families, family businesses are a significant driver of economic growth.
Owners of family firms are often concerned about maintaining control and keeping a firm grip on decision-making. After all, they have spent much sweat building up a successful business, with the family fortune and reputation at stake.
Hence, boards of family firms tend to be dominated by insiders. It is often the case that the founder is both CEO and chairman. A few family members may join him or her on the board, while the rest of the seats are taken by trusted professionals or long-time family friends.
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