“Dividends are the most transparent expression of what the family business means to the family economically,” CFA Travis W. Harms says. That’s why multi-generational family businesses need to develop a dividend policy.
Before jumping straight into developing a policy, however, family businesses need to determine what their business “means” to the family. Knowing the meaning of the business encourages positive shareholder engagement—and contributes to family harmony and sustainability.
There are four “meanings” that a family can have. Explore each of the four in this article—and determine which is best suited for your family.
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