Bringing a son on board could also jeopardise the company’s future. Capable members of the management team might decide to resign, feeling that their prospects for |promotion had been lost. Not only would the company lose valuable executives, it would have trouble ensuring a smooth transition from leadership to the next.
I never studied economics, but I learned from experience that a separation of ownership and management is important. Managers use their specialised knowledge to generate profits for the company, and the shareholders receive those profits. Shareholders should not be expected to help with management. Otherwise, chaos and inefficiency would ensue.
Once I had convinced my family members to become shareholders, I devoted myself to management. Because they were treated well, and because I did not try to monopolise shares myself, nobody in the family was dissatisfied with this new arrangement.