Definition: Family Office Board Meetings
In this article, we describe the important structure of family office board meetings. Many family offices, like Bessemer Trust, offer this service for their clients.
What Are Family Office Board Meetings?
Family office board meetings are structured gatherings of key stakeholders within a family office to discuss strategy, governance, and the management of
family assets. These meetings typically include family members, board members, and external advisors, ensuring that decisions align with the family’s
vision and long-term objectives.
The Purpose of Family Office Board Meetings
The primary purpose of these meetings is to facilitate transparent communication, make informed decisions about investments, succession planning, and risk
management, and maintain alignment with the family’s mission. Board meetings also serve as a forum for addressing emerging challenges and ensuring the
continued professionalism of the family office.
Imaginary Example: The Braun Family Board Meeting
The Braun family runs a multi-generational family office overseeing assets worth $500 million, including real estate, investments, and a private equity fund.
During their quarterly board meeting, key topics discussed include:
- Performance updates on the real estate portfolio, including a potential acquisition of a commercial property.
- Review of next-generation education programs, ensuring younger family members are prepared to take active roles.
- Approval of a sustainability initiative aligning the family’s investments with their environmental values.
Decisions from this meeting set the foundation for both immediate actions and long-term strategies for the family office.
Key Components of a Family Office Board Meeting
Effective family office board meetings typically include the following components:
- Agenda Setting: A well-prepared agenda ensures that discussions are focused and productive.
- Performance Reviews: Regular updates on financial and operational performance provide insights for informed decision-making.
- Governance Updates: Discussions about succession planning, risk management, and governance policies maintain alignment with family goals.
- Education and Training: Sessions to involve and prepare younger generations for future responsibilities.
- Expert Input: External advisors often provide specialized knowledge on tax, legal, or market-related matters.
Imaginary Example: The Chen Family Annual Governance Review
The Chen family, with diverse global investments, holds an annual governance-focused board meeting. This year, their agenda includes:
- Reviewing the family constitution and making updates to reflect changes in family dynamics.
- Electing a next-generation family member to the board as part of a mentorship program.
- Hearing from a legal expert on changes in international tax laws affecting the family’s investments.
These discussions strengthen the family office’s governance framework and ensure continued alignment with the family’s shared vision.
Picture source: Dane Deaner