SIBLINGS AND SUCCESSION IN THE FAMILY BUSINESS

How do family businesses handle succession? What happens when siblings compete for the position of CEO? Can nonfamily board members navigate successfully through conflicts among family members? Should they even try? This fictitious case study examines a host of issues with which family businesses regularly grapple. It describes the situation that f aces the board of directors of Benson Electric, a rapidly growing fami ly enterprise, upon the unexpected death of CEO and patriarch Buck Ben son. Benson, the son of the company's founder, left no succession plan . What's more, three of the people vying for the top job are his offsp ring-children of his two marriages. To complicate the scenario even fu rther, his widow, who owns 70% of the shares, wants her daughter, Juli e, to be named the CEO. Benson's first wife, however, fervently wants her son, Bob-Buck's only son - to have the job. Both candidates - and Bob's sister, Leigh, who also wants the title - currently hold managem ent positions at the company. Two nonfamily board members are also str ong candidates for the position of CEO. Caught in the middle of an emo tionally torn and feuding family, the directors must determine how to proceed. How can they manage the succession process without alienating family members and worrying employees and customers? Should the board consider nonfamily members for the job? Should they appoint a family member even if they are not at all certain that he or she is ready for the job? Is it even within their purview to make a decision at all? F our commentators - including both family and nonfamily senior executiv es - advise the directors on their best course of action.