Family firms

Governance of family firms

How does the family govern the family firm?

Families wield control over the firms they own in multiple ways. Most family firms, even the largest ones, have few shareholders from outside the family. In 80% of firms, both the CEO and the chairman of the board of directors belong to the controlling family, and the family occupies the majority of board seats. Finally, family firms are more likely to have females CEOs and board members than nonfamily firms.