Discussion among Cousins (3 weeks ago)

Peggy: Before you two cousins start your discussion, I just wanted to say what a joy it’d be to see another member of the Next Generation join the family business. Philip, I’m sure you haven’t made your decision yet – and I know things are at an early stage – but I really hope you can work things out with Maureen. I’ll see you later.

Maureen: Don’t forget we’re all meeting for lunch at 12.30. See you later mom.

Philip: It’s really nice that you guys can have such a close relationship. By this stage, so many daughters and mothers only get together on skype and even then they start bickering. Or maybe that’s just my wife and my mother in law!

Maureen: Yeah, that’s so true. Or maybe it IS just your mother in law.

Philip: Yes, well… let’s get to business. You know that I’m interested in joining you in the family business; I can see lots of advantages. But I also want you to know that IF I join then there needs to be absolute clarity about expectations and conditions. Could I start going through those with you?

Maureen: Absolutely. You know that we value your expertise and we’re keen for you to join as soon as you can – like, NEXT WEEK - but it’s in everyone’s interests to get total clarity FIRST.

Philip: Agreed. My first condition is about ownership. If I’m going to work in the business, and be as committed to it as though it were mine, then I’d like a small part of it to actually BE mine. That means: having an ownership stake through an agreed number of shares.

Maureen: looks surprised. The truth is that, though she’s been working in ‘her’ family business for 10 years, she doesn’t yet own any shares in it. Philip’s suggestion therefore seems radical, maybe even grasping.

Maureen: O-h. Well… on ownership… what I’ve always been told is to be patient. I mean, we can’t rush our inheritance. I’ve been working here for 10 years and I still don’t hold any shares. Although… I would like to. That’s to say, I think it’s a good idea. Since I work in the business. But would it be FAIR for you to have shares? Just because you make it a condition? When I don’t have any?

Philip: Hey, don’t get me wrong. I’m not demanding special treatment. I think ANY cousin who comes to work in the business should see there is a FAIR PROCESS for entering the ownership circle. Otherwise, if I were to join, in 10 years I could be still waiting for vague commitments and half-promises to be fulfilled. And even worse, Maureen, you could still be waiting too, after 20 years! There needs to be some agreement or policy. Something written down and transparent to everyone.

Maureen: I can’t argue with that. But let’s think practically. What you’re talking about here is a Shareholders’ Agreement; maybe a Family Constitution. That’s going to take a lot of time and effort.

Philip: Yes it is.

Maureen: That means you’re not going to be joining us next week, are you. Nor next month. Nor next quarter.

Philip: It’s going to take time. But it IS feasible and it’s going to be worth it. It’ll make things much clearer for me, for you, and for our other cousins if they decide to join one day.

Maureen: And for my children and for your children. And grandchildren…

Philip: Hey, I know a family business thinks long term but let’s go easy on my ‘grandchildren’ shall we? I can’t even think beyond my two kids at the moment. Let’s keep talking about this….