On the outside looking in - family business case study

Nation's Business, Oct, 1991 by Gerald Le Van, Marta Vago

Roger is the 30-percent owner and second-in-command of a small but successful manufacturing company. He is not, however, a member of the majority-owning family. The trouble is, says his wife, Megan, that Roger spends more time on the problems of the business's family than he does on those of his own family.

Now 52, Roger joined Fastco seven years ago. The owner, Liz, a banker's wife, inherited the business when her father died 20 years ago. She elected to run it instead of selling it. In the early 1980s, wanting to make the business grow, she persuaded Roger to leave a senior position at a large corporation by offering him a free hand and part ownership.

Roger has never been happier, Megan admits. But as the wife of a nonfamily executive in a family firm, "I'm always an outsider," she says. Neither Roger nor Liz keeps her up-to-date on Fastco. Sometimes at social events, employees and customers are surprised at how little she knows about what's going on. Liz's husband, on the other hand, is well-informed.

"It's certainly not that I'm stupid," complains Megan. As the superintendent of a school district, she is used to dealing with business and community leaders.

She also worries for her husband. There's nothing in writing to protect his position at Fastco, and if his employment is terminated, he has to sell back his stock. Liz's son, 35, who is moving up in the business, is clearly not fond of Roger.

"I don't know where I fit in and how I can help my husband," says Megan. "I would hate it if Liz's son would say to Roger, 'You've got this company where it is today, but I'll take it from here.'" But when she approaches Roger with her concerns, he tells her not to worry. Is there anything she can do?