EY Americas Family Board Guide

Family businesses are the backbone of the US economy, often operating with a purpose that extends beyond profit, creating long-term value for employees, communities and future generations. Being privately held allows families to make decisions rooted in their values and culture, with a focus on continuity rather than short-term results. Yet as enterprises and families grow, sustaining that long-term, principles-driven approach becomes increasingly complex.

For many growing and transitioning family businesses, governance decisions can feel daunting. But boards can take many shapes, ranging from informal, family-led forums to more formal boards with independent directors. This guide is a detailed playbook for families considering the formation of a board, as well as for those looking to strengthen the governance structures already in place. It outlines proven leading practices to help family members engage productively and choose structures that fit their organization’s stage of development.

This guide covers:

• How governance evolves in a family business
• The importance of parallel governance
• When to transition between governance structures
• The purpose of a board of directors
• Benefits of an active board
• Key responsibilities of the board
• The role of independent board members
• Who should be on the board
• How to find the right board candidates
• Family member participation and qualifications
• Clarifying authority across business, management and ownership