Strengthening the Family Business Board

Founder-led and family businesses are a major force in the economy and communities across the United States, with more than 32 million businesses providing 83 million jobs and generating more than 50 percent of US private-sector GDP. 

Family founders are committed to the long-term success of the firm, yet transitioning the family business to the second and third generations is a significant challenge. Only about 30 percent of family-owned businesses are passed down to the second generation. The challenge of succession is only heightened during a time of increased economic disruption, technological change, and the current wave of retiring baby boomers. NACD 2021 Private Company Director of the Year Lynn Clarke notes, “Having a majority-independent board of directors is one of three elements that help to ensure multigenerational business success. The other two are a robust strategic plan and an effective Family Council.”