Navigating the Unique Dynamics of Family-Owned Company Boards
We are coming off yet another successful event as part of our EY/BoardReady Women in the Boardroom Series – this time focusing on a topic that’s both timely and often overlooked: the evolving landscape of family-owned company boards. The conversation, featuring Erik Nordstrom and Phyllis Campbell alongside moderator Stasia Mitchell, unpacked not only how these boards operate differently, but what it takes to show up effectively as a board director in these environments.
Pictured, from left to right: Phyllis Campbell: Former Vice Chair, J.P. Morgan Chase; Senior Strategist, BoardReady; Erik Nordstrom: Chief Executive Officer, Nordstrom, Inc.; Stasia Mitchell: EY Global Entrepreneurship Leader
How Boards Have Evolved – and How Family-Owned Companies Are Different
When Stasia kicked off the discussion by asking how the role of the board has changed over time, Erik pointed out the growing consistency in governance standards across public companies. But when it comes to private and family-owned businesses, it’s a different story. Each one is unique – often times shaped by the values, goals, and personalities of the family behind it.
That’s what makes these boards both fascinating and complex. Before stepping into a family-owned boardroom, it’s essential to ask:
What is this board’s actual role? What authority does it hold? How does the founder or CEO view its purpose?
What CEOs Value Most in Board Members
As a CEO himself, Erik emphasized the value of governance acumen and the ability to help fill gaps in the board’s skills matrix. Phyllis, who has served on numerous family-owned company boards, reminded us that empathy and curiosity go a long way.
“Once you’ve seen one family-owned board, you’ve seen one family-owned board.”
Simply put, these companies require board members who not only understand the business but also the family dynamics – what they value, what they fear, and what legacy they want to protect.
Skills That Matter – and Questions Candidates Should Be Asking
For those considering joining a family-owned board, both panelists shared practical guidance. First, it’s not just about what you bring, but how you show up. Phyllis suggested that independent directors often act as educators – helping the family navigate succession, think through governance, and leverage outside expertise. But just as importantly, they should be asking the family:
What do you want from me in this role?
That question is key to aligning expectations. Erik added that relationship-building with family members is critical and something that isn’t always listed in a job description – but often makes or breaks board effectiveness.
Why Family-Owned Boards Are Worth Considering
So why family-owned boards? While they certainly come with their own nuances, Phyllis made a compelling point: these boards are forming and formalizing more than ever before. Many are in their first or second generation, which means they’re seeking new voices, and especially those who can bring a strong governance lens and a steady hand.
What Makes a Good Fit
Stasia wrapped the conversation by asking what makes someone a strong candidate for these boards, the responses were both grounded and inspiring. Erik stressed the importance of understanding what the company needs – and being honest about whether you can play that role. Phyllis encouraged directors to stay curious, continue learning, and be present.
Wrap-up
At BoardReady, we’re seeing a growing wave of interest in family-owned company boards – and we're currently partnering with several such companies as they navigate how to structure and evolve their governance! For those considering a board seat in this space, success often comes down to more than just your expertise. It’s about your ability to build trust, foster relationships, and tune in to the unique rhythm of a family-led enterprise.
We’re incredibly grateful to Stasia, Erik, and Phyllis for sharing their insights during this panel, and we’re already looking forward to continuing the conversation in our next event in the series.