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fiat group

July 17, 2012

More and more family businesses are hiring outside chief executives. CampdenFB asks whether a family or non-family CEO is better.

Tempted to promote your son or daughter to the chief executive position? You shouldn’t, at least if you believe current research. Family-owned companies with a family member as chief executive are among the worst managed, says a 2012 international study. Another, by British academics at Leeds and Aberdeen Business Schools, found that a company’s operating performance increased after a family chief executive left. Yet another found the stock prices of listed family-controlled businesses reacted favourably to the appointment of a non-family chief.

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