• The Succession Process of Ricardo Garza Limón

    In April 2024, Ricardo Garza Limón, the founder of Grupo Garza Limón in Mexico, was reflecting on the succession process he had embarked on in 2016. Despite making progress, Ricardo regretted not having achieved his main goal: seeing one of his two sons take on the role of chief executive officer (CEO) in the family firm. The company had a solid nonfamily CEO in place but needed to strengthen its board of directors and formalize a trust to align future generations with corporate governance principles. Ricardo also recognized the serious challenges facing the succession process. Not only were his sons unprepared for leadership and lacking key competencies, but there were ongoing conflicts between family members and struggles to balance family dynamics with business needs. With all these considerations in mind, Ricardo wondered whether his chosen succession plan had been the right one. If not, did he need to do something else to ensure the continuity and success of his business legacy?
    詳細資料
  • A Technical Note on Management Succession in Family Firms and the Role of the Board

    Boards of directors have important responsibilities in the context of top management succession processes. However, their role has not been sufficiently studied in the setting of family-controlled firms. Meanwhile, family executives often play a major role in the performance of family firms. In fact, replacing those family managers has important implications and needs to be treated as a priority by boards of directors. In this industry note, we explore the unique challenges that succession processes pose for the boards of family firms. We conclude that boards of directors should be particularly conscious of the need for planning, coordinating, and overseeing succession processes to meet both the business challenges and the controlling family’s expectations.
    詳細資料