“Do you understand the values and objectives of the shareholder group?” This is a common question asked of fiduciary and advisory boards—and one that’s often met with uneasy silence. In a public company, directors are expected to understand the shareholders’ priorities, including both financial and non-financial. However, in family-owned businesses, where multiple branches and generations exist, independent directors rarely have full visibility into the shareholders’ values and objectives.
When certain branches or generations’ priorities are ignored—regardless of intent—decision-making can stall and cohesion dissolve. In this article, Claudia Astrachan presents four vectoring reasons independent directors should learn more about family shareholders.
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