By Barbara Spector
Taking your family company public gives it access to plentiful capital it couldn’t have raised otherwise, allowing it to grow into a stronger competitor and maybe even a powerhouse in its market. Going public enables you to grant equity to key executives, a compensation strategy that can help you recruit the best and the brightest. An IPO raises the profile of your family and business — a good thing if you like publicity — and, if things work out, can make you rich.
But if you want to make a move your board opposes, the directors might try to reduce your power. That’s what’s happening to Shari Redstone, whose family holding company, National Amusements Inc., controls CBS Corp.