Incorporating independent directors into the family business brings more value when the company is prepared for it.
A new breakfast of the Family Business Chair of the University of Valencia has been held under the title “Implications and effects of incorporating independent directors to the Family Business”.
In the session, attendees were able to learn first-hand the experience of the CEO of GD Energy Services, Héctor Dominguis, who leads a family business of services to the energy sector and whose turnover comes from 80% abroad, and independent directors, as Kim Faura, (who in turn is General Director of Telefónica for Catalonia, C. Valenciana, Baleares and Murcia), and José Antonio Moreno (Managing Partner of Lantia Urbana and MMC consulting), all under the moderation of Carmen March, Partner Director of Broseta Abogados and Alejandro Escribá, director of the Chair.
Breakfast addressed the question of when it is appropriate to take the step to incorporate independent professionals in the council and the possible processes that can be followed for this. The speakers concluded that the company (and the family) must have matured this step sufficiently and prepared to take good advantage of the value that these professionals can bring.
Likewise, the appropriate profile of these directors was discussed, highlighting the importance of the confidence that they must convey both in the professional and personal spheres. The company must define the professional profile it needs and seek the experiential diversity of the people and the group generated.
The speakers have exposed the ways in which the directors add value, helping to make decisions made with stronger criteria, and contributing to the shareholders and owners not represented in the company feel more calm about the management of the company, and the search for the common good.
On the part of the participants, it has been agreed that the presence of independent directors also helps to moderate emotions and the effect of family feelings. Incorporating counselors can mean some loss of freedom when making decisions, but both the added value of their contributions and the contrast of the debate when making decisions has been valued as positive.
In the same way that the participants highlighted the importance of rotation, the independence of criteria and loyalty to the company, as key bases for the proper functioning of this figure, being very relevant to periodically assess the work developed by these professionals, at the individual level, as well as the performance of the council as a whole.
Each company finds its way and its process to achieve the objective of taking advantage of professional criteria, maintaining social peace and family welfare. With an eye on the professionalization of the governing bodies, following the indications of the codes and recommendations of good governance, the company must follow this process so that possible conflicts do not end up frustrating the final objective.
During breakfast, the last workbook prepared by the Chair under the title “My time has arrived” has been delivered to the attendees, which addresses the tools and tactics for an effective replacement of leadership in the family business and whose authors are Alejandro Escribá (director of CEFUV), Fidel García-Guzmán (CEO of Guzmán Global) and Agustín Gregori (CEO of Grefusa).
