ReportWire

Tag: Succession Planning

  • Long Island business confidence dips amid economic challenges | Long Island Business News

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    THE BLUEPRINT:

    • Long Island declined this year after a post-2024 election high.

    • Affordability and housing costs remain major concerns for .

    • Survey included 311 business leaders.

    Last year there was a measurable uptick in confidence among Long Island business leaders. This year that confidence dipped. Some of that decline reflects ongoing challenges, including long-standing affordability issues and, more recently, broader uncertainty. Local leaders met Thursday morning at the Crest Hollow Country Club in Woodbury to better understand the factors that are shaping Long Island’s economy.

    The gathering centered on the “Long Island Results Launch,” hosted by in partnership with the (SRI). The results provided insights via 311 Long Island business leaders who participated in the survey, helping to identify emerging trends, challenges and opportunities.

    The event included a panel moderated by PKF O’Connor Davies Partner Jeffrey Davoli. The survey’s results were delivered by Don Levy, director of SRI. Levy was also part of a panel discussion that included U.S. Reps. Nick LaLota (R-Amityville) and Tom Suozzi (D-Glen Cove), as well as Stacey Sikes, vice president of government affairs and communications at Long Island Association.

    Business confidence slipped from a “post-2024 election high,” prompting leaders to take a more cautious approach, according to Levy.

    “Fifty-four percent of the businesses we spoke to a year ago predicted that the year ahead was going to be better,” Levy said. “They were excited.”

    Those business leaders had planned to invest in fixed assets, add employees and see increased revenue and profitability.

    But, Levy said, “the year did not live up to their expectations.”

    Expectations for both the Long Island and national economies, according to the survey, declined sharply, with pessimism about the more than doubling from the year prior.

    Volatility, including and energy, may play a role in impacting business confidence, LaLota said.

    “What government does or doesn’t do, I think, can help or hurt you, and just having stability in those areas” can be important to businesses as they look at revenues and the ability to hire, he said.

    Uncertainty around tariffs are a big concern for owners, Suozzi said, adding that they are worried about upcoming changes to the current business environment.

    “I’ve talked to so many businesses that ordered things from overseas. While it was on the boat, the tariffs went up,” Suozzi said. “They got hit when they got to the dock with a $500,000 bill that they didn’t plan for. People can’t function in that environment. That affects the confidence. That affects your desire to say yes, I’m going to invest in this.”

    Also impacting confidence is affordability, something that’s now part of a national discussion, although Long Island has been grappling with the challenge, especially housing costs, for decades.

    Affordability is even seeping into . Davoli pointed out that, according to the survey, “70 percent express concern, yet only 27 percent have a structure plan in place.”

    Sikes said she wasn’t surprised that succession planning is an issue, especially at a time when the population is getting older.

    “We already have a challenge keeping young people on Long Island,” she said. “A median home price is $800,000 on Long Island. How can any young person afford a down payment, a closing cost, the mortgage and the taxes?” The region’s high cost of living makes it difficult for businesses to bring in and retain the next generation of leaders.

    When it comes to adding housing and navigating zoning, LaLota, said, “local control is always best. The state and the feds should not have a role in that.”

    Suozzi said that 95 percent of housing should be single family homes, but recommended that 5 percent, or less, should include housing in downtowns. “We have to build places where young people can afford to live,” but still “preserve our suburban quality of life in the process,” he said.

    Both Suozzi and LaLota spoke about bringing tax dollars back to New York State, adding that at the federal level, the state only gets back 85 cents for every dollar it sends to Washington, DC.

    Suozzi pointed out that New York State is more expensive than Florida and Texas because New York has the lowest rate of uninsured adults and children, while the two other states have the highest. New York also pays teachers more than many other states.

    New York, he said, has tremendous wealth, “but we have to get that wealth back to our state to try and reduce our costs. Or we’re going to lose this population fight because people are moving to these southwestern and southeastern lowest tax states, and we’re not keeping up with them.

    “Federal tax policy can help with that,” he said. “But it’s going to be a tough fight.”

    The complete survey is available here.


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    Adina Genn

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  • Why Many Business Owners Are Hesitating to Make Succession Plans

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    Formally handing over control of a small private business is usually the moment when owners can step into retirement, assured that the financial future of their company is in capable hands. Yet new data shows nearly half of founders surveyed fear the next generation isn’t sufficiently prepared to take over, leading less than quarter to have established formal succession plans.

    Those were the top findings of an annual survey by private investment bank and financial advisory firm Brown Brothers Harriman (BBH), which sounded out nearly 500 family-owned and privately owned companies. With 76 percent of respondents saying they had no formal succession plan or were only in the process of working one up, the results reflected the strong hesitations of many founders and current owners about passing their businesses to the next generation. Nearly 50 percent of participants described the family cohort that’s first in line to take over their businesses as being only “somewhat prepared” to manage its finances and operations, with 40 percent saying the next generation isn’t at all ready to shoulder the responsibilities involved.

    As a result, only 38 percent of company owners said they’d been entirely open and transparent to next-generation family members about their plans for passing along their personal wealth and business holdings. In some cases their hesitancy — or aversion to prepare for succession at all — was simply because current leaders were too busy or lacked a sense of urgency to do so. But other reasons they cited offered insights into the sensitivities and worries frequently involved in handing over a business.

    Top concerns that prompted owners to remain somewhat or entirely vague about their succession plans included not wanting disrupt family dynamics, and an aversion to revealing their intentions before the right time.

    Others were based on fears that designated successors wouldn’t continue working as hard and earning their keep once they’d learned of transmission plans, as well as worries that inheriting too much money would undermine the new leader’s dedication to and industriousness in the business.

    “Some owners fear that talking about wealth too soon may spark entitlement or anxiety instead of instilling gratitude and responsibility,” said BBH principal Ali Hutchinson in comments accompanying the report. “Starting early and tailoring these conversations to the age and maturity level of each family member can make the eventual transition smoother and more natural. This ongoing dialogue helps instill values, trust, and confidence over time.”

    Despite those hesitations, nearly two-thirds of respondents said they intended to transition company ownership to the next generation — at some point, anyway. Another with another 8 percent of participants said planned to have managers or employees to take control. But if leaving the business to children, close relatives, or chosen subordinates was a foregone conclusion for a majority of owners, many still expressed reservations about formally establishing and announcing those plans.

    Resondents cited potential family strife or other anticipated negative reactions most frequently at 46 percent of the time, with the lack of seeing a clear, single successor as another top response. Others included leaders’ own emotional reluctance to step away, and probable tax consequences as explanations why current owners hesitated to establish and reveal a firm exit strategy.

    According to BBH partner Kathryn George, those concerns are often further reinforced by the doubts business owners have about their natural successors being up to the task. In some cases, they may even inspire leaders to skip a generation, and transfer their company to younger family members they see as better equipped to assume the responsibilities involved.

    “Succession planning remains one of the biggest vulnerabilities for private businesses, and a large part of that often stems from worries around successor readiness,” George said. “Owners may know who of the next generation they’d like to take over, but how can they know when the next generation is ready?”

    Awaiting their eventual exit, a large majority of owners said their main focus remains building their business further, and leaving it as strong as possible for successors when they do hand it off. Over 77 percent of respondents said growing their company was their top capital priority, surpassing expansion of equity stakes for leaders who shared ownership, or increasing dividends they benefit from in a multi-party proprietary structure.

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

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    Bruce Crumley

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  • Apple’s CEO Tim Cook May Retire Soon. How’s Your Succession Planning Going?

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    When legendary Apple co-founder and CEO Steve Jobs died in 2011, long-time Apple supply chain executive Tim Cook had already been appointed to take his place. That was 14 years ago. Cook, now 65 and Apple’s longest-serving CEO, steered the company through successful product releases and the benchmark feat of becoming the first $1 trillion valued company in 2018, but strong rumors suggest that he’ll be retiring next year. The company is certainly deep in succession planning, and this may prompt you to ponder long-term leadership plans for your own company. It’s an especially timely issue in a moment where the pressures of being a CEO keep increasing in a complex business environment.

    The Financial Times reported this weekend that preparations for Cook to step down were accelerating, per company insiders who said both board and senior executives are involved with the effort. Apple is now a roughly $4 trillion company with a global presence, so this is no ordinary job. The FT says that John Ternus, currently acting as senior vice-president of hardware engineering is “widely” seen as the most likely executive to replace Cook. Though no final decisions have apparently been made, Ternus has deep knowledge of the tech giant’s operations and has appeared many times on stage during high-profile Apple hardware releases. 

    Cook’s stepping aside is not related to Apple’s performance, the FT notes, with the company widely expected to see hugely successful sales of its just-released iPhone 17 range. Cook is known to have strong preferences for an internal candidate, remarking as much when speaking with musical artist Dua Lipa on her November 2023 podcast. 

    Covering the news, Axios argues that Cook’s departure may be symbolic of the end of the “star” CEO. Although Cook isn’t as high-profile as his predecessor, his tenure as chief executive saw Apple become a global tech leader. Other boldface-name CEOs are also set to depart soon, with Disney’s CEO Bob Iger and Walmart’s CEO Doug McMillon all “preparing to leave the stage,” as Axios notes. The news outlet points out there are now an “unusual number of globally iconic brands” seeking new leadership. It’s possible that the complex legal, societal, political and technological winds swirling around the U.S., particularly with fast-evolving AI technology in mind, are playing a part in this CEO switcheroo.

    A new report at Fortune may underline this theory. In surveying the world’s top 200 corporate chiefs from the Fortune 500 for a book, senior partners at global management consulting outfit McKinsey uncovered the thinking and methodology of these company leaders, finding that 68 percent said they felt “ill prepared” to become CEO even as they stepped into the role and that 30 percent of CEOs don’t stay past the first three years. The role of CEO may also be becoming more important, and also perhaps more tenuous—more at the whim of influences like activist investors—than before. 

    Fortune notes that this means chief execs are typically juggling “roughly twice as many issues” as they would have had to just five to seven years ago. That time period is well within Cook’s tenure as Apple CEO, for example, and in that time Apple has faced numerous high-profile challenges including the covid pandemic, billion dollar-scale lawsuits and a high-profile miss in the multitrillion race for AI market share.

    What’s the big takeaway for your company?

    While you may be comfortable with your leadership team right now, maintaining a rigorous medium-term succession plan may be a good idea. Unexpected illnesses, aging executive team members and other occurrences both planned and unplanned may mean you need to look for new C-suite members without much of a warning. Deciding whether you want to promote someone from inside the company, someone steeped in its culture and way of working, or whether you want to hire a “new broom” external candidate is probably a good start. Having long-term discussions with possible candidates earlier rather than later also shows that you have the stability of the company in mind in ways that will reassure your workforce and investors.

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    Kit Eaton

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  • Apple is ramping up succession plans for CEO Tim Cook and may tap this hardware exec to take over, report says | Fortune

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    Apple’s board of directors and senior executives have been accelerating succession plans for Tim Cook, sources told the Financial Times.

    After serving as CEO for 14 years, Cook may step down as early as next year, the report said.

    Apple’s senior vice president of hardware engineering, 50-year-old John Ternus, is widely seen as the most likely successor, but no final decisions have been made yet, sources told the FT.

    The engineer joined Apple’s product design team in 2001 and has overseen hardware engineering for most major products the tech company has launched ever since, according to Ternus’ LinkedIn profile.

    He has also played a prominent role during Apple’s most recent keynotes, introducing products like the new iPhone Air. Ternus had been rumored to be Cook’s potential successor, according to previous reports. 

    The company is unlikely to name a new CEO before its next earnings report in late January, and an early-year announcement would allow a new leadership team time to settle in before its annual events, the FT said. 

    The succession preparations have been long-planned and are not related to the company’s current performance, which is expecting strong end-of-year sales, people close to Apple told the FT.

    Apple did not immediately respond to Fortune’s request for comment and declined to provide a comment to the FT.

    The $4 trillion company is expecting year-on-year revenue growth of 10% to 12% for its holiday quarter ending in December, fueled by the release of the iPhone 17 model in September.

    Ternus would take the helm of the tech giant at an important time in its evolution. Although Apple has seen sales success with iPhones and new products like Airpods over the past couple of decades, it has struggled to break into AI and keep up with rivals.

    Instead, Apple has even spending significantly less in AI investments compared to Mark Zuckerberg’s Meta, Amazon, Alphabet, and Microsoft. 

    Apple has been criticized by analysts this year for not having a clear AI strategy. And despite approving a multibillion-dollar budget to run its own models via the cloud in 2026, it was reported in June that Apple is even considering using models from OpenAI and Anthropic to power its updated version of Siri, rather than using technology the company has built in-house. 

    Its AI-enabled Siri, originally slated for 2025, will be delayed until 2026 or later due to a series of technical challenges, the company announced earlier this year.

    Apple has also lost a number of senior AI team members since January, many of whom have joined Meta’s AI and Superintelligence Labs during talent poaching wars this year. The exodus of Apple’s AI execs included Ruoming Pang, former head of Apple’s foundation models and core generative AI team, who joined Meta with a compensation package reportedly worth $200 million.

    The company is also dealing with increased competition from one of its most influential former employees.

    In May, Sam Altman’s OpenAI acquired startup io for about $6.5 billion, bringing in former Apple chief designer Jony Ive to build AI devices. The 58-year-old designer was instrumental in creating the iPhone, iPod, and iPad. 

    Cook, Apple’s former operations chief, turned 65 this month. He has grown the company’s market capitalization to $4 trillion from $350 billion in 2011, when he took over the CEO role from company co-founder Steve Jobs.

    Under Cook, Apple became the first publicly traded company to reach $1 trillion in market capitalization in 2018—then it became the first company to reach $3 trillion in market cap in 2022.

    But more recently, its stock price has been lagging behind Big Tech rivals Alphabet, Nvidia, and Microsoft, though Apple is trading close to an all-time high after strong earnings were reported in October.

    Apple has also dealt with tariff complications as U.S.-China trade tensions have disrupted its supply chain.

    Cook has previously said he’d prefer an internal candidate to replace him, adding that the company has “very detailed succession plans.”

    “I really want the person to come from within Apple,” Cook told singer Dua Lipa last year on her podcast At Your Service.

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    Nino Paoli

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  • The Case for Nepotism in Family Businesses

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    “Nepotism” is a “dirty word” in family business. It evokes images of unqualified relatives ascending to leadership roles at the expense of more qualified employees. However, in the context of family enterprises, nepotism, when approached thoughtfully and strategically, can be a powerful engine of continuity, loyalty, and long-term performance.

    Our experience advising hundreds of family businesses has shown that the question is not whether to bring family members into the business, but how to do so in a way that is transparent and maximizes the potential of family employees, all while protecting the culture, credibility and integrity of the organization.

    Family businesses are not just commercial entities, they are a collection of assets, people and history that blend business imperatives with deeply rooted emotional, relational, and reputational capital. Family members raised within this culture often embody the values and history of the enterprise. This embedded cultural alignment creates what we call “family capital” — a reservoir of trust, stewardship, and long-term thinking that non-family executives often take years to absorb. A well-prepared family member can bring a legacy mindset beyond their contributions, which is critical to the culture of a family business and can be difficult to replicate through external hires.

    Public companies often suffer from leadership churn driven by short-term performance metrics. Family businesses have distinguished themselves in the market by thinking in decades, not quarters. When family members are integrated effectively, they provide a form of continuity that’s increasingly rare in today’s business environment. Family owners who work in their business also develop a long-term commitment to the business, which is often cited as one of the key strengths of family businesses in the marketplace.

    We work with a 125-year old family business that just transitioned to its fifth CEO in its history, all of whom have been family members. External leadership can be transitional. Family leadership can signal a long-term commitment to employees, clients, vendors, and local communities, who may all find comfort in seeing a leader that they know is likely to be there for the duration of their relationship with the company.

    As is well documented in TV and in the news, nepotism has more than its fair share of risks. It can erode confidence in leadership, lead to entitlement, create family conflict, hurt morale and negatively impact the performance of a business if you have unqualified family employees making important decisions. So, how do you engage in the best forms of nepotism?

    Maintain the standard

    In order to protect the performance and culture of the business, family members should be held to the same standard as non-family employees when it comes to entry and promotion. Of course, the standard can be somewhat subjective, so the process also needs to be transparent and free from conflicts of interest. Holding family members to the same standard as other employees protects the business from unqualified leadership, and just as importantly, protects family members from being put into positions where they could suffer imposter syndrome.

    One family business we worked with implemented a multi-step process: (1) family members must work outside of the business for at least three years, (2) they must be sponsored by a non-family executive mentor upon entering the family business, (3) entry-level roles must align with their actual qualifications, and (4) all family promotion decisions had to be approved by an independent committee comprised of non-family members.

    One complicated question is how much employment requirements should be relaxed in order to attract family members into the business. In our experience, it should not be so much that family members are being put into roles they are clearly unqualified for, but it should not be so little that the family misses out on high potential family candidates. For example, a family member that meets most, but not all, of the job standards may be offered a role with the understanding that they will get the training they need to meet standard. This can open the door to family members working in the business and help them become successful while maintaining the company’s standards.

    Invest in the development of your family leaders early

    Another tool to combat the challenges of nepotism is to invest in the development of family leaders as early as possible in order to have a qualified pool to choose from. This means exposing family members to the business when they are young and encouraging those with interest in the business to pursue the education and professional experiences they will need to be successful in the family business. At home, families can instill values such as hard work and humility and connect them to the legacy of the family business. The goal is to develop a rising generation that enters the company not only as “the founder’s children,” but as credible contributors respected by their peers.

    Build great governance

    Robust governance frameworks that separate ownership from management, and affection from accountability are also critical to managing nepotism. For example, the hiring or promotion decisions of family members should be made, at least in part, by non-family members who can ensure the decisions are free of bias. Family employment policies, clear compensation structures, and evaluation systems should be transparent and enforceable. Some families create family employment committees that include both family and non-family leaders to assess candidacies objectively. Good governance clarifies the rules of entry and exit in the business to family members, which can prevent situations where family members intentionally or unintentionally take advantage of their status as family members to seek out positions they are not qualified for.

    Hold them accountable

    But even when you’ve done the work to ensure that family members are well-prepared for leadership roles in your family business, that doesn’t necessarily mean that they should be entitled to employment for life. Like any other valued employee, they should be evaluated on a regular basis and given feedback. If their performance fails to meet the standard, they should be subject to the same consequences as non-family members. Of course, firing a family employee, as with any employees, should be handled with a great deal of sensitivity. However, for the sake of the business and the family, the consequences should not prevent the business from making the right decision. To support the objectivity and transparency of the employment process, it can help to have non-family members involved in evaluating, and if necessary, exiting family members.

    Listen to the family member

    Finally, it is worth acknowledging that family members caught in the crosshairs of nepotism accusations can be deeply hurt by the notion. It can eat away at their confidence and cause them to distrust the very business that has been such an important part of their life. One family member told us that she felt punished every day she walked into the office for being a family member. It can feel like betrayal, and lead to actions that spiral into conflict and resentment.

    To avoid that, you need to make sure you are sensitive to the particular needs of family members working in their business. Providing them with mentorship or executive coaching, and a clear process that shows others that they earned their position, can go a long way toward attracting and retaining the best family members in their business while giving them great professional experiences.

    Dismissing nepotism out of hand can be just as risky to the success of a family business as embracing it. When nepotism is based on merit and transparency and managed by great governance, it becomes not a liability, but a competitive advantage.

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    Omar Romman

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  • Moritt Hock & Hamroff forms business divorce law group | Long Island Business News

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    Moritt Hock & Hamroff, a law firm with offices in Garden City, has formed its Business Divorce Practice Group, led by litigation partner Stephen Ginsberg.

    The group comprises seasoned attorneys who are dedicated to handling complex disputes among co-owners of closely held businesses.

    “Whether they stem from deadlock, financial misconduct or just differing visions for a company’s future, partnership disputes can be as intense as any personal split, frequently charged with emotion and requiring significant time, energy, and strategic expertise to resolve,” Ginsberg said in a news release about the group’s launch.

    The practice’s formation comes at a time when technological advancements are driving greater efficiency, profitability and business valuations across industries. In many cases, this rapid growth has strained existing business relationships and organizational structures, according to Moritt Hock & Hamroff.

    At the same time, a growing number of founders reaching retirement age has intensified challenges, contributing to what the law firm describes as a rise in involving dissolution, asset sales, ownership rights, compensation, succession and buyout terms.

    “The Business Divorce Practice group will draw on the full breadth of our firm’s experience in resolving commercial disputes, which spans a range of sectors including eCommerce, healthcare, finance, real estate, fashion, professional services and automotive sales,” Ginsberg said.

    Michael Cardello III, managing partner at Moritt Hock & Hamroff, said in the news release that the Business Divorce Practice Group “reflects our extensive capabilities, while building on the expertise we offer to clients nationwide.”

    Ginsberg, Cardello said, “has assembled an exceptional team of attorneys with a deep understanding of the unique sensitivities involved in working with closely held businesses and their owners.”

    The firm, which has offices in Manhattan, is in growth mode, having recently acquired a Fort Lauderdale boutique law firm, bringing the number of its locations in Florida to three.


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    Adina Genn

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  • Oracle’s new Gen X and Millennial CEOs get stock options worth $350 million—but they’ll have to keep the stock soaring to collect | Fortune

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    Oracle announced that longtime CEO Safra Catz will be replaced by two new internal hires: Clay Magouyrk, 39, and Mike Sicilia, 54. The outgoing CEO described the two as “a match made in heaven”—two technical executives who can further propel Oracle into the AI era.

    The move will marry veteran industry leadership from Sicilia with younger cloud-native expertise in Magouyrk. The latter is a founding member of the $920 billion tech firm’s cloud engineering team and Oracle named him president of cloud infrastructure in June 2025. Before joining Oracle in 2014, Magouyrk was a senior engineer at Amazon and Amazon Web Services. Sicilia joined Oracle after it acquired Primavera Systems in 2008, where Sicilia was chief technology officer. He later served as executive vice president in Oracle’s industries unit and in its global business units. In June, Oracle named him president in industries. 

    “I’m really looking forward to this stage,” said Catz during an investor call on Monday. “But it is absolutely time. You want to make a transition like this when things are great and when I’m handing it to two of the guys—actually a whole team—that brought Oracle here. This is ideal.” 

    In connection with their promotions, Oracle will give its Millennial and Gen X duo stock option grants valued at $250 million for Magouyrk and $100 million for the Sicilia. The leadership shakeup will also see Douglas Kehring promoted to principal financial officer at Oracle in the place of Catz. Oracle chief technology officer Larry Ellison will retain his CTO title and role as board chair. 

    “The company is being recognized as an innovator and leader in AI and our momentum has been nothing less than spectacular—and it’s only the beginning,” Catz told investors. “With this success in mind, Larry and I thought timing was perfect to recognize and promote several executives who have not only been instrumental in helping pivot the company, but who will be critical to leading us as we move forward.”

    With the massive stock option grants, Oracle is incentivizing Magouyrk and Sicilia to stay with Oracle until at least 2029, with 80% of each grant vesting over four years. The remaining 20% will vest over a three-year period but they must achieve specific revenue metrics for the performance options to vest, although Oracle did not comment on or disclose the specific metrics. The grants will only pay off if Oracle’s stock price rises. An Oracle spokesperson declined to comment on the disparity of the grants between Magouyrk and Sicilia. 

    “Oracle is entering the AI era. I’ve never seen an opportunity on this scale before,” Ellison told investors on Monday. “The immense impact of AI across our economy is hard to grasp. The colossal size of the AI endeavor and the colossal size of the responsibility that goes along with it is difficult to imagine.”

    Catz, meanwhile, will take on a new role as executive vice chair of the board. She has served as CEO of Oracle since 2014, when the board appointed Ellison chairman and CTO and named Catz and the late Mark Hurd as co-CEOs. Hurd took a leave of absence in 2019 and he died shortly after. Ellison did not name a co-CEO to replace Hurd.

    On Monday, Catz said the timing for the CEO transition was optimal. Catz is currently in the process of talking with Oracle customers and “introducing them to Clay and Mike” if they don’t know them already, she said. 

    “Safra led Oracle as we became a hyperscale cloud powerhouse—clearly demonstrated by our recent results,” Ellison said in a statement. “In her role as Vice Chair, Safra and I will be able to continue our 26-year partnership—helping to guide Oracle’s direction, growth and success.”

    Oracle’s stock is up 98% year to date, and earlier this month announced cloud infrastructure revenues were up 55% to $3.3 billion and that its pending contracts had ballooned 359% to $455 billion. Oracle told investors it had signed four multi-billion dollars contracts with three customers in a single quarter. The company projected 77% growth to $18 billion for cloud infrastructure revenue in fiscal year 2026 and a bullish fiscal 2030 projection of $144 billion. The company is hosting a major event next month in Las Vegas called “Oracle AI World” to exhibit its new products.

    “A few years ago, Clay and Mike committed Oracle’s Infrastructure and Applications businesses to AI—it’s paying off. They are both proven leaders, and I am looking forward to spending the coming years working side-by-side with them,” Ellison said. “Oracle’s future is bright.”  

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    Amanda Gerut

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  • 71-year-old billionaire Sir Jim Ratcliffe is in a race to secure his legacy

    71-year-old billionaire Sir Jim Ratcliffe is in a race to secure his legacy

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    Sir Jim Ratcliffe likes to keep busy. As a reward for working a seven-day week at his €40 billion ($52 billion) petrochemical empire Ineos, the British billionaire treats himself to a flurry of side projects, from owning a London pub and a football club to embarking on a real estate splurge in the remotest parts of Iceland.

    The 71-year-old is among the richest people in the U.K., with a net worth estimated at £23.5 billion, according to the latest Sunday Times Rich List. 

    What do you do with all that wealth? For Ratcliffe, the answer appears to be living out each of his childhood fantasies.

    Ratcliffe’s hobbies

    The petrochemicals billionaire has a quirky, eclectic mix of ventures, straddling his passions for sports, automobiles, fishing, and drinking.

    Ratcliffe was a regular in the Grenadier pub, nestled down a sidestreet in the affluent London neighborhood of Knightsbridge.

    It was over a pint in that pub that Ratcliffe decided to reignite the Land Rover Discovery, naming the soon-to-be-released model the Grenadier after his beloved watering hole.

    He bought the pub in 2022.

    Ratcliffe’s Grenadier pub.

    Kiran Ridley—Getty Images

    His most high-profile side hobby, though, was his purchase of a minority share in Manchester United last year, which would see him and his team take over football operations at the club.

    From his previous sports projects, such as his ownership of the hugely successful cycling team Ineos Grenadier and football club Nice and his professed lifetime support of the club, Ratcliffe pitched himself as the ideal man to help turn around Manchester United’s fortunes.

    Ratcliffe has already overhauled Manchester United’s footballing side, installing a new CEO, Omar Barrada, and poaching new sporting director Dan Ashworth from rivals Newcastle United.

    He has also quietly bought up 400,000 acres of land in Iceland, where he likes to go fishing.

    When asked by The Times if anyone owned more territory than him in the country, Ratcliffe replied: “Possibly the church?”

    “All the intensity of everyday life where everything is covered in concrete or tarmac and you’re umbilically attached to your iPhone disappears very quickly in this environment,” Ratcliffe told the publication. “It will be good for my longevity, I hope.”

    Legacy building

    Looking at Ratcliffe’s investments and judging by his comments, it’s easy to conclude his purchases are simply the expensive trappings of a billionaire designed to help him escape the intensities of running a major global company.

    That’s obviously a part of it, says Liz Colfer, associate director and chartered financial planner at wealth management business Five Wealth.

    “When you’ve been running the company for as long as he has, you’ve kind of ticked that box to a certain extent. And then it’s thinking about what what other things can you get yourself involved in, and what else you can do,” Colfer told Fortune.

    “If you’ve got that mindset, to a certain extent it’s never satisfied. There’s always something else. You’re always thinking of another idea.”

    Ratcliffe has often used personal anecdotes to build momentum for his purchases, rarely citing the potential for financial gain.

    Before buying a hefty stake in Man United, Ratcliffe spoke about supporting the club while he grew up in the Manchester town of Failsworth, located around seven miles from the Old Trafford stadium.

    However, lurking underneath this fulfillment of childhood dreams is likely a more tactical motivation.

    While still sprightly at 71, having completed the London Marathon in May in just over four hours and 30 minutes, Ratcliffe will be considerate of his legacy with his jaw-dropping purchases.

    Despite his massive net worth, Ratcliffe was a peripheral figure outside the business world during much of his time at the helm of Ineos.

    However, his purchase of a minority share in Man United has thrust him to household name status, and, save for a few rival fans, for good reasons.

    Sir Jim Ratcliffe, minority owner of Manchester United interacts with Andre Onana of Manchester United after the Emirates FA Cup Final match between Manchester City and Manchester United at Wembley Stadium on May 25, 2024 in London, England.
    Ratcliffe watched Manchester United lift the FA Cup in May.

    Michael Regan—The FA/Getty Images

    Taking over a club that was in disarray before his purchase, with a fan base growing increasingly angry at the club’s majority owner, the Glazer family, gives Ratcliffe the chance to be viewed as a savior.

    Ratcliffe’s Ineos shadow

    After building his net worth on a petrochemicals giant whose plants have faced legal action from environmental groups, Ratcliffe’s legacy is far from assured as the planet turns away from polluting fossil fuels as the effects of climate change become even more apparent.

    His new 4×4 Grenadier will run on hydrogen, acting as the poster child for Ineos’s renewables arm. However, the vast majority of its revenue still comes from its petrochemicals business.

    In July, Ineos pulled plans for an electric SUV named the Fusilier, citing weak demand and the U.K. government for “industry uncertainty over tariffs, timings and taxation.”

    Billionaire Jim Ratcliffe, chairman and founder of Ineos Group Holdings Plc, alongside a model of the Ineos Fusilier electric sport utility vehicle (SUV), outside The Grenadier pub in London, UK, on Friday, Feb. 23, 2024. Ratcliffe's Ineos Automotive offered a first look Friday at the Fusilier, a sport utility vehicle smaller than the Grenadier 4x4 that the closely held company started selling early last year.
    Ratcliffe alongside the Ineos Fusilier, which was pulled in July.

    Hollie Adams/Bloomberg via Getty Images

    His buying of land in Iceland could also pave the way for greener initiatives, says Jessica Crane, a wealth and business coach.

    “Investing in such a beautiful location not only offers potential for value increase but also opens doors for ecotourism and renewable energy projects.”

    It’s as yet unclear, though, how history will judge Ratcliffe’s attempts at a later-life rebrand.

    “The origins of one’s wealth – and society’s responses to it – often influence a wealth holder’s approach to it, and owning this narrative is key in ensuring they are on the front-foot and in control of their reputation and legacy,” Matthew Braithwaite, a partner at London law firm Wedlake Bell, told Fortune. “Ratcliffe’s purchase of the land in Iceland appears a nod to this obligation, helping to counter the environmental impact of INEOS and the origins of his wealth.” 

    Whether his efforts will be enough, Five Wealth’s Colfer says, is “interesting.”

    Ratcliffe is reportedly eyeing a new 100,000-seater stadium to replace Manchester United’s iconic Old Trafford, a structure that will last long after he is gone.

    If he can help oversee Manchester United’s first Premier League title since 2013 or its first Champions League since 2008, his name will also likely don the new stadium’s halls for generations to come.

    A representative for Ineos didn’t respond to a request for comment. 

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    Ryan Hogg

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  • Boeing taps internal executive with three decades’ experience for top job, but it might not be a ‘slam dunk,’ CEO succession expert says

    Boeing taps internal executive with three decades’ experience for top job, but it might not be a ‘slam dunk,’ CEO succession expert says

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    Boeing announced this morning that CEO Dave Calhoun would depart the company and that an executive with three decades of tenure at the $117 billion manufacturing company, Stephanie Pope, would take the lead of the commercial airlines division. As Pope takes charge of a business in crisis, investors are waiting in the wings to see what Pope’s plan is for the next 12 months—and how Boeing will hold her accountable. 

    Pope has a murky road ahead with regulators, investors and customers in reshaping the company’s culture and then proving to the world that people can trust it. Boeing has been beset by problems since before Calhoun even stepped into the CEO role to replace Dennis Muilenburg in 2019 after 346 people died while flying in Boeing-manufactured planes. The U.S. Department of Justice later fined Boeing $2.5 billion to resolve criminal charges of conspiracy to defraud the Federal Aviation Association’s aircraft evaluation group in January 2021. Three years on, Calhoun is leaving amid a strong lack of confidence among customers and the public after parts of Boeing-manufactured planes began blowing off midflight; last week members of the Boeing board, including Kellner, began holding meetings with major customers without Calhoun present.   

    “They’ve had a couple of years to figure out what’s going on with the engineering-assembly process and they haven’t diagnosed the situation yet,” said Jason Schloetzer, an associate professor at Georgetown University who has studied CEO succession and effectiveness. “They’re looking to clean house to a certain extent and get a new team in there with a fresh pair of eyes and new incentives to get this resolved—because you can’t affect change if you can’t even assess what the situation is and figure out what needs to be fixed, let alone put together a plan to fix it.”  

    Boeing insider likely less costly than looking outside 

    Going with Pope as an internal CEO pick for the airlines division is likely far less expensive than hiring someone from outside Boeing, said Maria Vu, senior director of North American compensation research at proxy advisory firm Glass Lewis. An executive from outside the company would have required Boeing to offer the exec “make-whole” payments, to compensate for equity they would leave behind with a prior employer. Plus, companies in distress often have to provide a lot of incentives to lure executives from other companies to take over a business in crisis. It’s unclear at this point if Boeing will offer Pope more than the compensation she received as chief operating officer, which was $1.2 million in salary plus an annual cash bonus of $2 million and a long-term incentive of $10 million. Once Boeing discloses Pope’s goals, investors are likely to scrutinize them for signs of how the board intends to hold Pope accountable for turning around Boeing’s culture, she said.

    “There seems to be a significant risk to the business if the company’s culture is not meaningfully addressed,” said Vu. “It will be indicative of how serious the board is about changing the culture if you look at the sorts of things they’re incentivizing Ms. Pope for in her incentive programs.”

    With Pope, the company is turning to a seasoned executive to turn the company around and on the one hand, “that’s great,” said Schloetzer. She is “somebody who knows the business really well and been there for a long time and is well-versed in what’s going on,” he said. On the other hand, Pope is also “a person who has been there while these issues have been playing out.”

    “It’s not easy to find somebody who can come in and think through an organization like Boeing, so it also makes sense to have an internal person, but it’s not a slam dunk,” said Schloetzer. According to Schloetzer, there may also be recruiting below the C-suite and NEO level to bring in fresh perspectives to Boeing. 

    The management bloodletting at the top includes Stan Deal, president and CEO of Boeing’s commercial airlines division who Pope is replacing, and board chair Larry Kellner, who stepped into the role in 2019 when Calhoun crossed over from being a board member to CEO. The company has also seen outflows from other executive roles in the past few years, including Leanne Caret, president and CEO of Boeing’s defense, space and security unit, and senior vice president and treasurer David Dohnalek. The Boeing board elected Steve Mollenkopf to replace Kellner. 

    In January, Boeing announced that Calhoun had tapped Admiral Kirkland Donald as a special advisor to investigate Boeing’s quality management system for commercial plans. Kirkland, who is chairman of the board at $11.5 billion military shipbuilding company Huntington Ingalls, was to give Calhoun and Boeing’s aerospace safety committee a report and recommendations. His review remains ongoing, said a Boeing spokesperson in a statement to Fortune.

    For Calhoun, the bulk of his more than $20 million in pay was supposed to come from his long-term incentive pay award, which had a target of $17 million. By the end of 2023, he was to have seen the 737 MAX safely return to service; realignment of engineering function; 777X twin-engine jet entry into service and delivery and production ramp-up. The award did not vest, according to the company’s disclosures. 

    “Generally, to incentivize an executive to be serious about something and to make material changes, especially if it’s a material risk to the business, we would expect to see some revisions to incentive programs to help address that,” said Vu.

    As for Calhoun, he has at least $20 million coming his way and potentially another $45.5 million, depending on how the next CEO fares in the role. However, the Boeing board could provide him additional compensation as part of his departure or the board might decline to do so in order to avoid the additional scrutiny. 

    “How they classify his departure is a conversation they are likely having with him in terms of negotiation,” Vu said.

    Editor’s Note: This story has been clarified to state that Stephanie Pope is the new president and CEO of Boeing commercial airplanes.

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    Amanda Gerut

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  • Morgan Stanley pays Gorman $37 million for final year as CEO

    Morgan Stanley pays Gorman $37 million for final year as CEO

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    James Gorman engineered a transformation of Morgan Stanley with wealth management at its core following its near collapse during the 2008 financial crisis. Gorman, 65, was succeeded as CEO earlier this month by Ted Pick.

    Yuki Iwamura/Photographer: Yuki Iwamura/Bloom

    Morgan Stanley increased James Gorman’s compensation 17% for his final year as chief executive officer, boosting his pay to $37 million.

    Three-fourths of Gorman’s bonus will be paid in deferred stock over three years, the New York-based firm said in a regulatory filing Friday. On top of his $1.5 million base salary, he received a cash bonus of just under $9 million.

    During his time as CEO and in 2023, Gorman “reshaped the firm into a stronger and more balanced institution positioned for long-term growth,” the bank said in the filing. “In addition, Mr. Gorman successfully accomplished an orderly, multiyear CEO succession-planning process.”

    Gorman, 65, was succeeded as CEO earlier this month by Ted Pick. During his 14 years running the firm, Gorman engineered a transformation of Morgan Stanley with wealth management at its core following the firm’s near collapse during the 2008 financial crisis. Gorman is now the bank’s executive chairman.

    In a rarity for Wall Street, the two executives who missed out on the CEO job agreed to remain at Morgan Stanley, with co-President Andy Saperstein gaining oversight of asset management in addition to his role leading wealth management, and Dan Simkowitz replacing Pick as co-president leading the investment-banking and trading division. In October, Morgan Stanley granted special bonuses worth $20 million each to Pick and his two deputies.

    In Friday’s filing, Morgan Stanley said its board’s compensation committee approved, retroactive to Jan. 1, a new base salary of $1.5 million for Pick — a move made to bring his pay in line with Gorman’s base salary when he was CEO. Pick previously received a base salary of $1 million a year.

    Gorman’s 2023 pay bump follows a cut the previous year. His compensation was reduced by 10% for 2022, a year in which profit tumbled at Morgan Stanley and its shares sank more than 13%. Last year, the stock rose 9.7% even as net income slumped 18% to $9.09 billion. Revenue, however, rose slightly to $54.1 billion.

    The pay increase for Gorman comes after a bump for the head of JPMorgan Chase. On Thursday, the largest U.S. bank announced that it raised CEO Jamie Dimon’s pay 4.3% to $36 million for 2023, a year in which his company notched the highest profit in the history of U.S. banking.

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  • Running a Family Business Means You Need to Prepare Your Kids to Take Over — Here’s How to Do It Right. | Entrepreneur

    Running a Family Business Means You Need to Prepare Your Kids to Take Over — Here’s How to Do It Right. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Succession planning in family businesses is a topic that often evokes mixed emotions. On one hand, it represents the continuation of a legacy, while on the other, it can be a source of anxiety and uncertainty. Anyone who has seen the HBO show Succession can attest to the roller coaster of emotions that takes place. Preparing your children for the next phase of your business is a complex process that requires careful consideration, communication and planning. In this article, we’ll explore the key steps involved in helping to ensure a smooth transition of your business to the next generation.

    One of the critical mistakes many family business owners make is waiting too long to initiate succession planning. Ideally, this process should begin years, if not decades, before you intend to step down. Early planning allows you to identify and address potential challenges, ensure your children are adequately prepared and create a transition that is as seamless as possible.

    Related: 1 in 10 Leaders Say Succession Planning Is Not Worth the Time and Money It Costs — Here’s Why They’re Wrong.

    Start with open and honest communication

    According to the Family Business Institute, only about 12% of family businesses survive into the third generation. One of the major reasons is lack of communication.

    Effective communication is the cornerstone of a successful succession plan. Begin by having open and honest conversations with your children about your intentions and expectations for the business. These discussions should be ongoing and involve all relevant family members, including those who may not be directly involved in the business but could still be affected by the transition.

    Encourage your children to express their own aspirations and concerns. Listen carefully to their input and be willing to adapt your plan based on their feedback. This collaborative approach can help build trust and ensure that everyone is on the same page.

    Identify and develop key skills

    Once you’ve established open communication, it’s essential to assess your children’s readiness to take over the business. This assessment should go beyond their desire to be involved and focus on their skills, knowledge and experience. Consider the following questions:

    1. Do they have the necessary education and training? Ensure that your children have the qualifications and capabilities required to run the business successfully. If not, provide opportunities for them to acquire the necessary skills.
    2. Have they gained relevant work experience? Working outside the family business can provide valuable insights and experience that can be beneficial when they eventually take the reins. A lot of family businesses require their children to work for other companies before they can join the family business. This gives the children a better perspective of working for others and also, they can gain industry knowledge to help the family business.
    3. Are they familiar with the industry? A deep understanding of your industry, market trends and competition is crucial. Encourage your children to stay informed and engaged in industry-related activities.
    4. Do they possess leadership qualities? Effective leadership is essential for running a business. Assess your children’s ability to lead and manage teams, make tough decisions and handle the challenges of business ownership.
    5. Are they financially responsible? Ensure that your children have a good understanding of financial management, including budgeting, financial forecasting and risk management.

    If your children lack certain skills or experience, consider providing them with mentorship, additional training or opportunities to work in different roles within the company to develop their capabilities gradually. Once you feel that they are ready for the next step, it’s time to create a plan of action.

    Related: 4 Lessons on Succession Planning for Entrepreneurs

    Create a clear succession plan

    A well-defined succession plan is a roadmap for the transition of your business. It should outline the specific steps and timeline for transferring ownership and leadership roles. Your plan should address key aspects such as:

    1. Leadership transition: Specify when and how leadership responsibilities will transfer from you to your children. Be clear about who will take on which roles and how decisions will be made during the transition period.
    2. Ownership transition: Determine how ownership shares will be transferred and at what price. This may involve discussions about equity distribution, buy-sell agreements and estate planning.
    3. Training and development: Outline a comprehensive plan for developing your children’s skills and knowledge in preparation for their new roles. Consider creating a structured training program or providing access to external resources.
    4. Conflict resolution: Anticipate potential conflicts that may arise during the transition and establish a process for resolving them. This can help prevent disputes from escalating and jeopardizing the business.
    5. Contingency plans: Prepare for unforeseen circumstances by developing contingency plans. What happens if one of your children decides not to join the business? How will you handle unexpected challenges or changes in the market?
    6. Legal and financial considerations: Consult with legal and financial advisors to ensure that your succession plan complies with all legal requirements and minimizes tax implications.

    Seek external advice

    While family businesses often benefit from maintaining control within the family, seeking external advice can be invaluable during the succession planning process. Consider involving professional advisors, such as lawyers, accountants, financial advisors and business consultants, who specialize in family business succession.

    These professionals can provide objective insights, help navigate complex legal and financial matters and offer guidance on best practices. Their advice can be particularly useful when dealing with sensitive issues like estate planning and tax implications.

    Gradual transition and mentorship

    A successful transition doesn’t happen overnight. It’s often best to implement a gradual shift of responsibilities and ownership over a period of time. This allows your children to gain practical experience and gradually assume greater leadership roles.

    Mentorship plays a crucial role in this process. As the current business owner, you can provide valuable guidance, share your knowledge and insights and help your children develop the confidence and skills necessary to lead effectively. Encourage them to take on increasing responsibilities and decision-making authority as they demonstrate their readiness.

    Related: Succession Planning: It’s Never Too Early to Start Thinking About the Future of Your Business

    Monitor progress and adapt

    Once the succession plan is in motion, it’s essential to regularly monitor progress and be willing to adapt as needed. Keep the lines of communication open with your children and other key stakeholders. Periodically review the plan to ensure it remains aligned with the evolving needs of the business and the capabilities of your children.

    Be prepared to make adjustments if unforeseen challenges arise or if your children’s interests and abilities change over time. Flexibility is a key factor in ensuring a successful transition.

    Preparing your children for the next phase of your business is a complex and multifaceted process. It requires early planning, open communication and a clear succession plan. By assessing your children’s skills, providing ongoing mentoring, seeking external advice and gradually transitioning leadership and ownership, you can increase the likelihood of a smooth and successful handover. Remember that a well-executed succession plan not only secures the future of your business but also helps to preserve the family legacy for generations to come.

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    Mark Kravietz

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  • Succession Planning Is Vital — Here’s What You Need to Do. | Entrepreneur

    Succession Planning Is Vital — Here’s What You Need to Do. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Business owners know a thing or two about working long hours. Without fail, there’s always something to do. But what about putting in the time to develop proper business succession planning? A recent report from SIGMA shows that nearly 1 in 10 leaders believe succession planning is not worth the time and money that it costs. Are you that one? There will be a time when you’ll want to transition ownership of the business to another party, and it may be sooner than you think.

    While seemingly straightforward, succession planning for business owners can take several different forms, each with its own set of pros and cons. You’ll want to understand your options and how they relate to what you hope to accomplish. No matter when or how you transition ownership, your results will be impacted by how much effort you put into planning.

    Related: Succession Planning: It’s Never Too Early to Start Thinking About the Future of Your Business

    Starting with the end in mind

    An important trait in highly effective people is the ability to come into any given situation with a clear understanding of the destination. It allows for better identification of the necessary steps to achieve a desired outcome. That’s business succession planning in a nutshell — or, at least, that’s the goal.

    If you think success planning is as simple as handing over the reins to family, you’d be mistaken. Only about half of heirs want to take ownership of the family business. That’s a stark difference from what business owners actually think, with 67% believing that their heirs want the business. Even if the family member is ready to take over, succession planning for business owners takes time and preparation. Below are five strategies that will help you start planning for succession and the thought that needs to go into it.

    1. Carving out the time necessary

    In our experience, it’s best to start creating a succession planning roadmap at least three to five years prior to the date of the planned transition. Without a roadmap, you might unknowingly create hurdles to a successful transition instead of facilitating a clear path to new ownership. In fact, it could even put into question the financial security you desire.

    Let’s say you’ll be selling the business to an unrelated third party. The financial impact will be significantly different than “gifting” the business during your lifetime or transitioning ownership upon your death by way of an estate plan. You must determine the value needed from the sale to maintain your lifestyle once you no longer own the business — and that’s just the start.

    Related: Most Family Businesses Don’t Have a Succession Plan in Place, But That’s a Huge Mistake

    2. Making sense of a sale prior to the sale

    Selling to an unrelated third party can present several challenges. Identifying potential buyers that are qualified to purchase the business isn’t always easy nor is taking all the appropriate steps to prepare the business for a sale. A great deal of information will be required as part of the buyer’s due diligence process. How long will the process take from start to finish?

    Then, there’s the question of whether to engage a business broker or investment banker to assist in the sale. How will they evaluate potential offers? What potential issues might come up in the purchase agreement? Are there any confidentiality concerns? Is the sales process being done in the most tax-efficient manner? Have you considered what you’ll do after the sale?

    3. Balancing business continuity and succession planning

    We recently worked with an owner who had several separate yet related businesses. They only wanted to sell one of them. The process started with a full valuation and then the determination of whether selling one business would be detrimental to the value of the combined businesses. They also wanted to explore whether they could sell the business to a group of employees and how that might compare to an outright sale.

    We conducted an assessment to identify the business owner’s goals in the ownership transition. Then, we helped them prioritize those goals. After talking with several interested buyers, including the employees, the owner decided to move forward with a large buyer who expressed interest in acquiring the business and real estate.

    4. Arriving at a smart fiscal decision

    The owner’s choice of buyer came down to the fact that it would enable them to achieve the majority of their highest-priority goals. Because of advanced planning, the owner knew what their business was worth, the minimum value they’d need to receive from the sale and the potential issues the buyer would likely raise.

    Ultimately, the buyer did make an offer that was lower than the valuation, but we were able to negotiate a more acceptable offer that provided for full payment at closing. This provided the certainty that the owner sought, and the transaction was closed within a reasonable amount of time. All parties were pleased with the outcome.

    First Business Bank recommends you employ a team of professionals to help you come up with a proper valuation for your business — including “your CPA and business appraiser. You might also include your attorney, wealth management professional, business banker and possibly an investment banker/business broker in the discussion to ensure coordination.”

    5. Putting the pieces together

    Creating a succession plan for your business always starts with defining the goals you’d like to accomplish as part of the ownership transition. It’s for this reason, among many others, that we recommend getting the ball rolling as early as possible. Once you’ve defined your goals, you can focus on arriving at a fair market value for your business today.

    With that in mind, how much value would you need to realize to be financially independent after the transition? Will the sale allow you to live your desired lifestyle? If there’s a gap between the fair market value and what you need to achieve your future income needs, then develop a plan to increase the value of your business within the timeframe you’d like for the transition.

    Related: 4 Lessons on Succession Planning for Entrepreneurs

    Getting what it’s worth

    We firmly believe that the more time and effort you spend on business succession planning can exponentially improve the probability of a satisfactory outcome. The more you prepare and understand what to expect, the smoother the process will go for both you and the buyer. It also doesn’t hurt to have an advisor on hand who can properly assist you through the process.

    Ultimately, preparation is key to successful succession planning for business owners. It will save you time and could even help in building trust with the buyer, which can minimize conflict as the process moves forward. When the buyer has confidence in the information they’re receiving and your integrity, it provides you with more leverage in negotiating the final price and terms.

    In the end, a succession planning roadmap increases the chances that you’ll get what the business is worth and be able to maintain your lifestyle for years to come. It’s all in your approach.

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    Larry Guess

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  • Jamie Dimon’s Advice to His Future Successor: ‘Give a S–t’ | Entrepreneur

    Jamie Dimon’s Advice to His Future Successor: ‘Give a S–t’ | Entrepreneur

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    During JPMorgan Chase’s 2023 Investor Day yesterday, Chairman and CEO Jamie Dimon was asked what he thought were the important characteristics of who would eventually replace him. Dimon, who perhaps has been glued to HBO’s “Succession” like the rest of us, seems to have had a little Logan Roy rub off on him and answered rather bluntly: “I think the most important traits [are] that you’re trusted and respected by people, that you work your a– off, that you give a s–t, that you know you don’t know everything.”

    Related: JPMorgan Chase CEO on Crypto: ‘Decentralized Ponzi Schemes’

    Dimon went on to discuss what he says are keys to great leadership, signaling out curiosity, courage, and grit. “That you’re willing to change direction, you’re willing to go in front of your shareholders and say, ‘We screwed up, we made a mistake, we were wrong about that,’” he explained.

    These are the kinds of attributes that we can all aspire to, but in Dimon’s words, they are not things that can be learned or taught. “[I]f you don’t have grit, you don’t have it. [If] you don’t have courage, you don’t have it,” he said.

    Related: JPMorgan Chase Reportedly Owns Rocks Instead of Nickel

    The New York Times declares that JPMorgan Chase is “dominant” right now. It has nearly 4,800 branches in the continental U.S., and the investment bank “regularly outperforms” the likes of Goldman Sachs and Morgan Stanley.

    While Dimon isn’t expected to step down soon (almost certainly not before he is scheduled to collect a $50 million payout in 2026), the Times gave a scouting report on who might come next, picking Marianne Lake and Jennifer Piepszak, who jointly run Chase’s consumer operations, as the frontrunners.

    We’ll likely have to wait until 2027 to find out which of them gives a s–t more.

    Related: Are You an Authoritative Leader Like Logan Roy or a Personality Hire Like Cousin Greg? Which ‘Succession’ Character Are You At Work?

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    Dan Bova

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  • How to Sustain a Family Business Over Multiple Generations | Entrepreneur

    How to Sustain a Family Business Over Multiple Generations | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Preparing the next generation for leadership is one of the hardest parts of running a family business. Whether the company has been run for several generations or just one until now, knowing when to hand over the reins to the next leader is a challenge. Identifying the proper person for the task, and strengthening them for it, is something many family business owners grapple with during their careers.

    Of course, not every family-owned business has a successor to take on the leadership responsibilities of the organization. Some company founders may not have children or other relatives they can rely on to run the business, and in other cases, relatives have no interest in taking the helm of the company. Senior leaders with their leadership transition mapped out are at an advantage, but they often worry about their relative’s ability to handle the upcoming challenges they know will arise.

    That said, preparing the future generation for what’s to come is vital.

    Related: Your Family Business Won’t Survive If You Don’t Plan for the Leadership Transition

    People learn through experience, not lectures

    Think back to when you were a young adult, navigating the world outside your parent’s proverbial nest. You probably encountered several unexpected scenarios that have probably left an impression on you to this very day.

    Perhaps you bought your first car without any assistance and wound up with an expensive monthly payment at a high-interest rate because you didn’t understand the importance of building up your credit. Maybe you fumbled an early relationship or went overseas for the first time. Typically, these experiences make for memories that stay with us for decades, and all of them can act as learning experiences that we look to when we encounter scenarios that require us to act.

    While you may remember the countless talks your parents gave you, they likely didn’t resonate as a genuine experience might have. They certainly outlined the potential consequences of our actions, but unless you actively went against the advice, you likely never experienced the repercussions.

    As such, It can be tempting to swoop down and stop your child from making a decision you know will adversely impact them, but allowing them to experience the consequences makes them better future decision-makers, which will be positive for the family business.

    Related: A 400-Year-Old Family Business Remains the ‘Gold Standard’ in Its Category — Its First Women Leaders Reveal the Secret

    Give the next generation room to grow

    Lecturing the future generation on what it takes to run the business isn’t going to provide the outcome you’re looking for. Instead, up-and-coming leaders need to have their own experiences away from the company (and the eyes of their parents) to realize their capabilities fully.

    If “saving the day” is a sticking point for you, perhaps it’s time to let your children experience life outside of your constant observation. If they’re planning for college, for instance, promote universities that are out of state or overseas.

    It’s essential to allow the next generation to identify potential solutions to problems and try them out. Even if you know the solution won’t work, they’ll enjoy the excitement of bringing a new idea to the table and implementing it. They’ll have the space to grow into themselves and be better prepared to deal with adversity as a result.

    Allow your successors to develop their own identity

    A child or relative who grows up in the shadow of the family business needs time away to build their identity. The family name may be quite familiar in their local community. People will likely associate them with their parent’s name and the company, and sometimes, being the child of a family business owner makes it easier to find acceptance in prep schools and college.

    Pushing them to create their own identity by working toward a degree of their choice and joining clubs or activities that interest them is crucial. Don’t push your agenda; allow them to pursue their own identity.

    In addition, rather than hiring your relative to the family business fresh out of college, require them to work for another organization for a few years. Experience away from the family business will open their eyes to new ways of handling work-related issues that may benefit the family company in the future.

    Related: How to Successfully Prepare Your Family Business for the Next Generation

    Push character development activities

    People who always have someone there to “bail them out” are never given the opportunity to learn their capabilities. Whether you’re the founder of your family business or a second-generational leader, you’ve likely failed in some of your endeavors, and you likely remember your failures and what it took to overcome them quite vividly.

    Facing complex challenges and pushing through them is part of developing a solid sense of character. Rather than allowing them to give up and let someone else take on the task, future leaders must work through their hardships.

    Give your future leaders a chance to fail. As harsh as that may sound, they’ll learn that hard work and thoughtfulness are critical to overcoming obstacles and gaining the confidence they need to deal with future setbacks.

    Don’t hand everything over on a silver platter

    You’ve probably worked extremely hard to get where you are today, and you’ve just as likely seen significant successes, losses, and a bit of everything in between. You’ll want to ensure that your future leaders understand what you went through, even if they weren’t there to witness it in your company’s early days.

    Rather than handing your child the keys to your business outright, make them work for them. If you’re nearing retirement age and they’re unprepared to run the business, find another family member or a trusted external advisor to handle it for a while. They can mentor the next generation and move them along the succession path according to an appropriate timeline.

    It can be tempting to assume the next generation is ready to take over your company and allow you to enjoy your twilight years, but you must ensure they have time to develop skills and realize their identity. The best things in life come from hard work and determination, so give the future generational leaders of your company the space to build their character before bestowing the business upon them.

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    Shawn Cole

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  • ‘Succession:’ 5 Lessons the Roy Family Could Stand to Learn | Entrepreneur

    ‘Succession:’ 5 Lessons the Roy Family Could Stand to Learn | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    For three seasons, HBO’s award-winning series, Succession, has been centered around what the show’s title suggests: Who will inherit control of the Waystar Royco? As someone who has spent the better part of my career working with the real-life Logan Roys of the world — we’re talking ultra-wealthy individuals, often with children from multiple marriages, sitting at the helm of major corporations — let’s just say I have thoughts on how Logan Roy, the patriarch of the Roy family and founder of Waystar Royco, has orchestrated the company’s succession plan.

    As we head into the highly anticipated fourth and final season, I’ll share, based on my extensive experience — as a planner, strategist and personal advisor for individuals and families as well as a pioneer and premier authority on legacy planning — five lessons the Roy family could benefit from learning.

    But first, let’s recap where we left off. Logan Roy is set to relinquish control of his media and entertainment conglomerate. But rather than handing the reins to one of his three children, in a surprise twist, he says he has decided to sell — not merge — Waystar Royco to streaming platform GoJo. This means none of Logan’s children will take over as the buyout deal would completely cut them out of the business.

    Related: What Entrepreneurs Can Learn from HBO’s ‘Succession’

    It’s a move that no one expected, or even thought was possible. A stipulation that was negotiated by Logan’s second wife as part of their divorce settlement protected the children from ever losing control of the company. Logan Roy would need the children’s unanimous consent for any change of control — or so we thought.

    In the final moments of the season, Logan Roy revealed he renegotiated that divorce settlement, and the children no longer have such power. It would appear heading into season 4 that Logan Roy is (yet again) in complete control of Waystar Royco’s fate, at least for now.

    While this succession nightmare makes for entertaining TV, there are some real lessons we can learn based on how the show panned out. So let’s dive right in!

    1. You absolutely need a succession plan for your business

    Okay, if there were a succession plan, then there probably would not be a show. That said, Logan Roy is in his 80s, and yet there is no plan for who will take over as CEO of Waystar Royco should he die or become incapacitated, nor does there seem to be a plan in place for what happens to his wealth and controlling shares of the company. While not uncommon, this is completely irresponsible. A succession plan ensures a smooth transition upon a CEO’s resignation, death or incapacity and helps avoid the risks of lost revenue, decreased productivity or a damaged reputation.

    2. A prenuptial agreement is a must

    A prenuptial agreement is absolutely necessary to protect your business. Without one, you risk your business becoming a marital asset subject to divorce proceedings. Had Logan Roy had a prenuptial agreement, his shares of Waystar Royco could have been clearly designated as non-marital assets to which his ex-wife had no right or entitlement. He could have retained complete control of the company, and his children would never have had the opportunity to band together and potentially block a sale or merger of the company. Even worse, the provision that was negotiated actually incentivizes Logan to pit his children against each other so they are never a unified front — which brings us to our next issue.

    Related: Are You an Authoritative Leader like Logan Roy or a Personality Hire Like Cousin Greg? Which ‘Succession’ Character Are You At Work?

    3. Family success is built upon healthy communication and trust

    A now-famous study conducted by Roy Williams of the Williams Group surveyed 3,250 families over a 20-year period and found that the reason 70% of intergenerational wealth transfers fail is because of a breakdown of communication and trust within the family unit. The Roy family could be the poster children for this study.

    There is absolutely zero trust amongst the family members, nor is there healthy communication. As a result, the reality is that Logan’s fortune will most likely be squandered quickly after his death. If Logan wanted his fortune to last generations, he would have to create healthy lines of communication amongst the family that emphasized transparency and trust. Regular family meetings and outings are one way of accomplishing this. One client of mine even had a family newsletter that went out regularly.

    4. Money does not buy happiness

    I don’t know about you, but I do not desire to be a member of the Roy family. Despite their wealth, they just don’t seem like happy people. Perhaps that is because, as the old adage goes, money cannot buy happiness. Well, that old adage has been backed by science. According to positive psychology, happiness in the sense of your overall well-being and flourishing as a human consists of five elements (referred to as “PERMA“): positive emotions, engagement, positive relationships, meaning and accomplishments. Money and material possessions only produce temporary gratification and not long-term happiness.

    Related: Succession Planning: How to Ensure Your Business Will Thrive Without You

    5. Take the time to discover your life purpose

    The fundamental flaw with every character in HBO’s Succession is that each lacks a sense of life purpose. We do not know why Logan Roy created Waystar Royco or what the company’s mission is. It is suggested that Logan grew up impoverished and under harsh circumstances around the beginning of World War II. Are we to believe that Logan’s drive is fueled by a desire to escape, and never return to, those circumstances? His children, on the other hand, seem simply to be vying for their father’s love and approval. In other words, everyone seems to be stuck in some form of trauma, as opposed to pursuing some greater life purpose.

    The most successful clients I have worked with, in terms of living happy, fulfilling lives while achieving great financial wealth, are those who are not defined by their circumstances and have lived their lives in pursuit of a greater purpose.

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    Daniel Scott

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