Defining roles of managers and owners
Paul Sr., a true entrepreneur, spotted a need in the marketplace for a well-made widget. Little did he envision the wild success of his enterprise. With this success, Paul Sr. realized he could provide employment for his offspring and that one day the business might be theirs. The eldest second-generation sibling became a physician; the other three joined the business and over the years became successful managers in their respective departments. All of the four siblings married and had their own offspring. The ten children of the family managers grew up in a close cousin environment because of their parents' work; hence, they spent a lot of time together. The three children of the eldest sibling, who was not part of the business, were less connected to their cousins.
At age 70, Paul Sr. began to think about retirement, what to do with the company and how to structure his estate. He quietly made the decision that since the eldest sibling had done well as a physician and had nothing to do with the company, a fourth of Paul Sr.'s outside investments would suffice as his inheritance. The three siblings who worked in the company would inherit their share of the outside investments and would also inherit the company itself. After all, they had helped make the company successful.