MANAGEMENT SHORTAGE CAUSES PROBLEMS IN B.C.
Vancouver — British Columbia is suffering from a shortage of management skills compared to Ontario, according to some high-tech execs from the West Coast. There is no problem getting high-tech expertise, but small-sized and start-up companies struggle to find sufficient management skills to build, manage, market and handle business volume, said Adam Lorant of Redbank Network Systems Canada Inc. Lorant was with the history making Abatis Systems Corp. when it was taken over by Redbank in August for US $636 million.
FAMILY BUSINESSES FAVOURING TEAM SUCCESSION
Marietta, Ga. — More family business owners are looking to hand leadership reins to a team of siblings rather than to first-born children, reports The Family Business Advisor. But creating sibling succession teams is fraught with dangers, as up to one-half soon break apart. Firms taking the team path should consider: exit plans for siblings, board members from outside the family, a sibling code of conduct for decision-making, conflict resolution planning, compensation processes, plans for the future participation of other family members, and a consensus on the role of key non-family executives.
GOOD GOVERNANCE EQUALS INVESTOR INTEREST
New York — International investors are willing to pay as much as 20 per cent more for stock in firms that demonstrate good corporate governance, a study by McKinsey & Co. indicates. Common characteristics of such firms include: a majority of board directors from outside the company with no ties to management, director pay in the form of stock options and a formal evaluation process for board members.