Family* Participation Guidelines

Every family business must decide who is in the family gets to work in the business and how will these family members be treated as employees. We share with the guidelines created by a family business that is a member of the IFOB.

• Family members must have a minimum of 5 years experience outside the family business.
• The position for the family member should be a valid position from a business perspective.  The position can be a newly created position as long as it is needed.  The ownership council will match skills and training with business needs.
• Family members must be qualified for the position.
• Beginning with the fifth generation, no spouses of family members nor extended family members will be employed in the family business.  No extended family member of the fourth generation will be employed in the family business.  Fourth generation spouse involvement will need the consent of the ownership council.
• When a family member begins to consider outside employment, notice of his/her intentions should be given to the ownership council.  A family member must give at least one month notice of his/her intention to leave.  S/he may re-enter at any time by consensus of the ownership council and by following the above entry guidelines.

• Family members are expected to be committed more than any non-family employee.
• Family members will set an example for hard work, dedication, and high standards, as measured by ownership council.
• Prior to involvement with any outside paid job or entrepreneurial enterprise outside of the family business, a family member will communicated such to the ownership council.

• There will be frank, periodic reviews of performance contribution, and commitment by family members using the established review procedure.  Family members in management positions will be reviewed by the ownership council with input from key employees and managers.

• Governance will be by an ownership council.  Member in the ownership council will be that of XXX.
• All modifications, additions, deletions, and exceptions to these guidelines, as well as decisions dictated by the guidelines, will be made by consensus of the ownership council.  If an issue directly involves an ownership council member or his/her family, s/he will be excluded from the discussions and decision-making process.
• Any violations of these guidelines will be addressed by the ownership council.

Stock Ownership

• Stock ownership is by XXXX.

* Family is defined as direct descendants of XXXXXX.

^back to top