My brother is a co-owner and currently sits in our Head of Marketing seat, but he clearly does not GWC the role as our industry shifts to digital acquisition. How do we make this Right Seat call when family dynamics and company equity are on the line?

Question

Tyler Smith · Accepted Answer

This is one of the hardest situations an owner can face, but you must separate ownership from operations. Your Accountability Chart represents the operational structure of the business, not the cap table.

A person can be a right owner and still be in the wrong seat. If your brother does not GWC the marketing seat, his continued presence in that role is actively damaging the value of the business and frustrating the leadership team.

To resolve this, have a direct and unsentimental conversation. Focus entirely on the operational requirements of the seat. Show him the roles and metrics defined on the Accountability Chart and discuss where the gaps are.

Offer to help him transition out of the operational seat and into a pure ownership role. Explain that by stepping down, he is protecting his own equity and allowing a specialist to grow the business. He can still attend shareholder meetings and receive distributions without bottlenecking the marketing department.

If you avoid this tough call to keep the peace, you are compromising the future of your company. Address the issue directly, respect his status as an owner, but hold the line on operational performance.