The independent chairman

In most privately owned family businesses, the chairman of the board is a family member. But for some family ownership groups, an executive from outside the family is the best choice for the chairman's job. Several multigenerational families, for example, have found that a non-family chairman can best manage the boundaries between the family and the business, while meeting the needs of both.

“The independent chair brings a broad perspective that the board is working for the shareholders who elect them,” says Ann Pelham, a director of Canal Insurance Co., Greenville, S.C. “If the company is not providing a return for the shareholders, then the board isn't doing its job.”

Already a subscriber? Sign In

About the Author(s)

Related Articles

KEEP IT IN THE FAMILY

The Family Business newsletter. Weekly insight for family business leaders and owners to improve their family dynamics and their businesses.