Key non-family positions. The family business must make a conscious effort to place a number of non-family members in key management positions. While it is clear that the CEO job is unlikely to be available to them, they must be given real responsibility, authority and power, and must command the respect of the family. The right people for these critical jobs will expect a generous compensation package and often some kind of equity-equivalents. Plan for succession.
Succession is one of the touchiest problems in most family businesses.
Two rules are fundamental. First, plan early, and in an orderly and open way. And second, the selection of the successor should be entrusted to a truly independent and knowledgeable outsider. This outsider must know the company and have observed the candidates at work. This outsider may be a professor who has been a long-term advisor to the company, or possibly an independent CPA or an attorney.