Family Business Succession: Chairman, Co-CEOs, Core Franchise

The succession decision is on the board agenda, but it should be built for the next decade, not the next meeting. A family business that survives a handover usually has a plan: a chairman who holds the long view, operating CEO roles split by durable business unit, deep operating experience before succession, and a rule that each generation leaves the business stronger. The test is whether the next owner can run it without the founder.

The decade is the real deadline

Most families end up choosing generational transfer, a sale, or professionalization. Many analyses value the coming decade's U.S. private business ownership transfer at $5 trillion or more.

The average family business owner is in the late 60s, and nearly three-quarters of surveyed firms remain under first- or second-generation family leadership. In 2025, 69% of North American family offices had a succession plan, up from 53% the prior year. About 70% of family businesses do not survive the founder-to-second-generation transition, leaving 30% at second generation, 15% at third, and 11% at fourth.

Name a chairman to hold the long view

The chairman owns strategy, family governance, and the standard that the next generation leaves the business stronger. The role can say no to a move that looks good now and hurts the franchise later, and it keeps the family and board aligned while the operating team handles revenue, staffing, and client service.

Richard S. Gebbia and David J. Gebbia, both 59, became co-CEOs of Siebert Financial on November 4, 2026, after more than 30 years of securities and brokerage industry experience. Their father, John J. Gebbia, ended his CEO role on November 4, 2026, and stayed as chairman of the board. John M. Gebbia became CEO of Muriel Siebert & Co., LLC, the core broker-dealer under Siebert Financial, and joined Siebert Financial's board. The company is set to enter its 60th year in 2027.

Split CEO roles by durable unit

Assign the CEO role by durable business unit, not by personality. Each operating role should have a clear P&L, a named successor, and a board seat if the unit is material. Require deep operating experience before succession: the heir should have run a unit, managed a team, and survived a difficult client cycle before taking the top role.

The parts need each other: the chairman needs durable units to avoid daily management, the units need a chairman for coordination, and the rule needs operating experience to mean anything. The board should test the split against a stress case: a key client leaves, a product line slows, or a unit needs capital. The plan should show who decides, who covers the cost, and who reports back.

Protect the core franchise

The core franchise is the part of the business that should outlive any single owner. It may be a product, a service line, a regulatory license, a customer base, or a brand that clients trust. The succession plan should name what is protected, who protects it, and what happens if the family no longer wants to run it.

It should remain intact even if the family sells a division, brings in a partner, or hires a professional manager. The plan should say what is excluded and what can be reorganized. External capital can be useful when the family knows what it is protecting. The family should state whether it wants to stay fully owned, bring in a partner, or sell a stake, and what the condition is.

Firms with a clearly articulated purpose were twice as likely to pursue aggressive growth, 18% versus 9%, and more likely to prioritize long-term goals, 35% versus 26%. Globally, 26% of family businesses expected to seek external capital, including private equity, over a three-to-five-year horizon. The board should review the plan as the business changes and update the names, units, and protection rules.