The Fundamental Components of a Family Agreement

Abstract

T he second generation of the Cordetto family in Argentina was considering the future for the eight cousins of the third generation. Several questions were making demands on people's time and energy: • What are the rules for next-generation family members to work in the business? • Is the family committed to next-generation business involvement and ownership, and if so, why? • How does the family make decisions? • How can the family educate themselves to address these subjects? • Who should participate in the educational process and decision making? • Is it more important to rely on the family's values and past experiences? Or is it better to set clear rules? • If family members are expected to pursue higher education and outside work experience, can we still expect them to start at the bottom of the company as past generations have done? • Will we need different compensation systems than in the past?