March 14, 2014
Our client took over as CEO of a third generation family business on the brink of failing. The new CEO managed to stabilize its financial condition and return the company to profitability. However, two former executives of the company, one a family member and the other a long time employee, still had significant positions in the company and remained minority shareholders. Both presented financial, performance, and interpersonal obstacles to the company’s new direction.
Acting as partners with the new CEO, we analyzed the situation, assessed risks and rewards, and in a clear, straightforward fashion we devised a plan to resolve the problem. The guiding principle was determining whether the former executives were assets or liabilities.
Through a combination of documentation, execution and bringing the right resource to the problem, one former executive was terminated amicably, and without litigation, while the other transitioned to a position which utilized his strengths at a more appropriate compensation level.
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