Ownership Plans Stage 1

Ownership Plans Stage 1: Owner-Managed (a) Owner-Managed Proprietorship: The business is to serve the pleasure of the owner and his/her family. (b) Owner-Managed Capitalist: The goal is to maximize the shareholder value of the business even if meeting that goal results in the sale of the business. (c) Owner-Managed Steward: The goal is to preserve and enhance the business for future generations. Stage II: Sibling Partnership (a) Co-Managing Partners: The siblings share equally in ownership value and power and in managerial responsibility. (b) Caretaker: One sibling has ownership control, such as a trustee position or a "golden share" (one share that has all the voting power) and takes personal responsibility for the business and for the welfare of the family while all the siblings participate, usually equally, in the rewards of ownership. (As you continue to read the story of the Ochs-Sulzberger family, you will see that it closely resembles this variation in the second stage, except with respect to ownership control.) (c) Investment Partnership: The siblings are all non-employed investors in the business, with a non-family executive or a non-family trustee taking responsibility for business leadership. Stage III: Cousin Collaboration (a) Family Holding Company: Some family members collectively govern the business for the welfare of the family. (b) Entrepreneurial Venture Fund: Family members are encouraged to start their own ventures with the use of collective family funds. Success of any venture is usually shared, in part, with the family, and, in part, to fund future family-member ventures. (c) As If Public: The business is owned and operated as if it were a publicly traded company, or it is so. Family owners can hold their shares or divest as they wish. Governance and employment decisions are made by the same standards as decisions of non-family controlled, publicly traded companies.

— from Family & Parenting (Family/Parenting)

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