Volume 14 Number 2 September 2005
A Publication of The Center for Family Business at the University of New Haven
In a family-owned business, family equity is value measured by trust, communication, shared vision and planning among family members.
PASSION:
It’s Not Just a Fruit at Stew Leonard’s.
Charles Leo Leonard seems to have
inspired a great deal of passion in his
family. He was passionate about the
dairy business, opening a state-of-the
art dairy in the 1920’s, complete with a
pasteurizing and bottling plant. He also
wanted his business to be distinguished
from other dairies that delivered milk to
the home.To please his youngest consumers, his dairy trucks were complete
with plastic cows on the front that
“mooed” to children as they passed.
Charles’s son, Stew Leonard, Sr., took
over the business and realized in the
late 1960’s that delivering milk to homes
The Leonard Family
was a thing of the past. He decided to
Beth,
Marianne,
Stew Sr., Jill, Tom and Stew Jr.
open a dairy store. Keeping his father’s
passion to make children happy and
maintain a unique identity, Stew’s store Leonard, Jr., is very passionate about openoffered parents an opportunity to shop, ing a store in Orange, Connecticut . . . nine
while children were kept occupied years after purchasing a 44-acre site and
years of negotiating with the officials and
watching the milk bottling operation.
The family’s passions seem to keep citizens, the Orange Planning and Zoning
expanding over the decades. Today, Commission has finally granted approval for
Stew Leonard, Jr., runs a growing num- Leonard to build a new store, garden cenber of retail outlets that were labeled ter, restaurant and training facility.)
Stew Leonard, Jr. believes that his pas“the Disneyland of dairy stores” by the
New York Times. Customers choose sion to achieve excellence in customer serfrom a limited line of 2000 items, includ- vice can only be met by providing his eming meat, fish, produce, bakery, cheese ployees with a good place to work. Stew
and wine. The company selects its Leonard’s was named one of the “100 best
items based on freshness, quality and companies to work for in America” by Forvalue. Children (and their parents) are tune Magazine in 2005, for the fourth contreated to animated characters who pro- secutive year. This distinction was achieved
vide “Disney-style” entertainment by virtue of Stew Leonard’s employee benthroughout the store. Families can also efits and training, a desire to promote from
visit the petting zoo or enjoy sched- within, recognition and award programs,
and a supportive atmosphere where indiuled entertainment.
There are currently three Stew viduals are respected while being a part of a
Leonard’s stores located in Norwalk team.
Together with their loyal customers, the
and Danbury, Connecticut and Yonkers,
New York, with two scheduled to open Stew Leonard’s team has served the comin the near future. (And, oh yes, Stew munity in many ways, including providing
support to rescue workers after the
9/11 disaster, donating turkeys to underprivileged families annually at
Thanksgiving, and raising money for
AmeriCares for the Tsunami relief effort. The company has matched contributions made by customers for these
causes. Stew Leonard’s receives so
many requests for donations, it has established a monthly deadline for submission of requests, and provides a
timely response to charities soliciting
its help. Stew Leonard’s responds to
the needs of local charities with product donations.
There is another cause which Stew
Leonard, Jr., and his wife, Kim, are very
passionate about. This passion, however, is not derived from family tradition, but rather out of family tragedy.
Their 21 month old son, Stew Leonard
III, died as a result of drowning in a
swimming pool. The Leonards have
since become inspired to prevent such
a tragedy from occurring in any other
family.
Stew and Kim realize that adults are
keenly aware of the danger children face
when they are unsupervised around
water. Their mission is to education children about water safety, as well as having them learn how to swim. While
adults are responsible for the safety of
children, caregivers are often distracted
by a ringing phone, the demands of another child, or countless other interruptions. Stew and Kim feel the key to water safety is for children to know they
are not supposed to be near water
alone. Every young child telling a parent “You know I’m not supposed to go
near the pool by myself,” is a goal the
(continued on page 4)
From the Director
University of New Haven
Center for Family Business
Paul L. Sessions, Director
Chairman of the Board
M.L. McLaughlin, Ph.D., President/CEO
UNH Foundation, University of New Haven
Board of Directors
David Y. Bailey
Bailey Schaefer & Errato, LLC
Andrew J. Errato
Bailey Schaefer & Errato, LLC
Denise B. Davis
U.S. Trust Company
Daniel M. Smith
Gowrie, Brett & Young,
MassMutual
Trung Trang
Sequence Financial Group
MassMutual
Charles C. Kingsley
Wiggin and D
Len Leader
Wiggin and Dana
Passion – for work, for family, for
values and ideals, for the things that
really matter to each of us. I’ve been
thinking about this lately, about the way
that passion moves and motivates me.
One of my passions is for the work that
we do here at the Center, work that I
believe really matters in this world. It’s
what gets me out of bed in the morning,
makes it worth slogging through snowstorms and heavy, sticky summer days.
What about you, our reader? Where
does passion show up for you? What
do you care deeply about and how does
it affect the way you live your life? We
would like to hear from you on this subject. Tell us about your passions. How
do they effect your business? How do
they affect your relations with family and
friends? Are they an asset or a liability?
E-mail us at cfbunh@newhaven.edu.
We will publish your responses in an
upcoming issue of Family Equity.
It seems like summer just began and
here we are starting another season. It
will be a wonderful start with Jason
Jennings and “Think Big act small” on
September 13. He received a standing
ovation for a similar program at the
UMass Family Business Center. Then
Stew Leonard, Jr. on October 18. He is a
brilliant and entertaining speaker, and it
Paul L. .Sessions
will be a great evening.
Next will be Millie Grenough who has
written a lovely and practical book
called Oasis in the Overwhelm. She will
join us on November 8 and 9 to teach
us some of the simple and powerful
techniques she has developed for handling our everyday stresses.
On December 13 and 14, we will welcome Frank Sulloway, the man who literally wrote the book, Born to Rebel,
about birth order and its effects on families in business. Frank has continued
to think about and research this subject and he will be bringing us his latest
thinking. Another CFB program not to
be missed.
CFB has gone high-tech! Now you
can register for our conferences on
our website: www.newhaven.edu/cfb.
Welcome back. It’s going to be another
great year.
Member News
Barrett Honored by OAAA
John Barrett, of Barrett Outdoor Communications, was the recipient of a 2005
Hall of Fame Award by the Outdoor Advertising Association of America, Inc.
John grew up in the outdoor advertising business, working for his father’s
company while attending Carnegie
Mellon. Today, John and his brother
Bruce, run the company. John is a strong
voice for independent operators through
his leadership at the state and national
levels.
Congratulations, John!
Kaiser Whitney Ranked #1
Kaiser Whitney Staffing was once again
voted “ Best Employment Agency in the
greater New Haven area” by a New Haven Reader’s Poll for 2005. This is the
3rd consecutive year they have achieved
that status. One of over 210 employment firms in the greater New Haven area,
we congratulate Kaiser Whitney for keeping ahead of their competition.
2
Marty Edelston Inducted Into
Direct Marketing Hall of Fame
What does it mean when you go to work
and you are greeted by a Marching
Band? For Marty Edelston, founder and
president of Boardroom Inc., it meant the
announcement that he was selected as
one of three 2005 Honorees for The Direct Marketing Association Hall of Fame.
A formal induction will be made at the
DMA Annual Conference and Exhibition
in Atlanta this October. Marty’s co-honorees include Tim Litle of Litle & Co.,
and Ted Spiegel (Spiegel Catalog).
Marty started his business 33 years ago
in his basement, and has grown it into a
multi-million dollar publishing empire.
Boardroom Inc. is responsible for such
periodicals as: Bottom Line/Personal and
Tax Hotline as well as Bottom Line
books, one of the largest sellers of oneshot mail order books in the country. His
“I-Power” management incentive program serves as a model for many compa-
nies, including Kodak, Ford Motor
Company, and Rubbermaid. Marty is a
generous supporter of educational
causes focusing on Direct Marketing.
Bigelow Tea Juices Things Up
Bigelow Tea has launched a new line
of all natural herbal teas flavored with
real fruit juice - an amazingly flavorful
cup like no other herb tea but without
any calories, carbohydrates or added
sugar! The success of their new products has helped them finish up their year
with almost 10% growth over last year.
Bigelow green tea is also driving the
business as people are discovering the
health benefits of this miracle beverage. Bigelow black tea is also great for
the body as it helps improve the cardiovascular system!
As of July 1, 2005, Cindi and Lori
Bigelow were named Co-Presidents of
Bigelow Tea. They are looking forward
to continuing the success their parents
have enjoyed over the past 60 years.
Are You “ Tough Enough” to Lead Your Family Business?
by Mary Corbitt Clark
A recent New York Times article details the circumstances surrounding
Phillip Purcell’s resignation from Morgan Stanley. According to most accounts, the now former CEO and President was an autocratic leader. He was
intolerant of dissent, played power
games and had little time for his frontline staff. Not surprisingly, an exodus of
the firm’s top people occurred under his
watch. Purcell inspired such enmity
within the organization that even a sympathetic Board consisting primarily of his
people couldn’t protect him. He had become a liability and the Board knew it.
Purcell, realizing he was skating on thin
ice, chose to resign before being asked
to step down. In short, Purcell was a
bully who got his comeuppance, going
the way of such notable tyrants as
Sunbeam’s “Chainsaw” Al Dunlop,
Hewlett-Packard’s Carly Fiorina and the
NY Stock Exchange’s Richard Grasso.
Interestingly, the Times article hails
Purcell’s departure evidence of a deeper
management trend, away from autocratic
leadership and towards the kind of progressive leadership promoted by Winning Workplaces. True enough, the
Purcells of the world appear to be a dying breed. In fact, the article, entitled
“The Legacy of Purcell: Tough Guys Finish Last,” gets a lot right. It is refreshing
to see the media recognize this kind of
management is no longer viable in
today’s business environment. Ultimately, the New York Times’ take on the
story was disappointing, because it
seemed to conflate autocratic leaders
and bullies with tough leadership. Its
title, harkens back to the old FORTUNE
list of “America’s Toughest Bosses”
which often equated tough leadership
with rigidity, ruthlessness and cruelty.
There remains an underlying notion
that progressive leaders are soft, that
open communication and a belief in fair
play are somehow signs of weakness.
Through our work with enlightened employers for our Best Bosses recognition
program and our Success Stories, it is
clear that progressive leaders are nothing if not tough. Isn’t protecting your
people even if it means having to make a
personal sacrifice the sign of a “tough”
leader? Isn’t talking straight with employees and facing their questions, no
matter how difficult, a sign of toughness?
Shouldn’t a tough leader be secure
enough to delegate authority and thickskinned enough to listen to voices of
dissent?
Almost without exception, the executives we have profiled created an environment of accountability, which is the
furthest thing from soft. Accountability
means focusing on results. After all, ultimately, aren’t results the measure of a
business? It is unrealistic to expect an
atmosphere of accountability to flourish in an environment where all important decisions are made by one person.
Employees always have the built-in excuse of “Well, that wasn’t my idea,”
when something goes wrong under autocratic management.
Progressive leadership is often a matter of common sense or “enlightened
self-interest.” Progressive leaders give
employees tools and training they need
to succeed in their jobs. They are willing to delegate and ask others for their
opinions, rather than cheating their organization of their staff’s talents, knowledge and creativity. Above all else, progressive leaders inspire loyalty and respect through treating employees honestly and fairly.
A strong sense of fairness was among
the most common traits held by our Best
Bosses.When Diana Pohly, CEO of Pohly
and Partners and a Best Bosses winner,
faced drastic cost cutting to keep her
doors open, she and her management
team communicated openly with staff
about the hardships the organization
faced and shared the pain — cutting all
executives’ pay, including her own by
15 percent while reducing the staff’s by
10 percent. As a result, the firm managed
to survive without layoffs and was able
to retain key talent. Today the company
is not only surviving but growing. Salary reductions have been lifted.
An autocratic leadership style is more
costly than tough. The low morale seen
at Morgan Stanley under Purcell’s leadership is common to autocratically run
firms and low morale is almost always
costly in terms of higher turnover, frequent absenteeism and lower productivity. All the evidence suggests that
companies with high levels of employee
satisfaction outperform companies with
low levels of employee satisfaction. For
example, the stock of the companies
identified in FORTUNE Magazine’s “100
Best Companies to Work for in America”
list outperformed that of the Standard
and Poor’s 500 by over 430 percent between 1997 and 2003. A recent study from
Northwestern University’s Forum for
People Management & Measurement
found that there is a direct correlation
between employee satisfaction and customer satisfaction, and customer satisfaction and financial performance.
If the Morgan Stanley story teaches
us anything, it is not that “tough guys
finish last,” but that there is a difference
between being a tough boss and being
a tyrannical one. Morgan Stanley has
seen both. In fact, their story is distinguished by two executives with contrasting leadership styles. Purcell’s predecessor, the late Richard Fisher, provided a
very different brand of leadership than
Purcell, one much more in line with contemporary management practices. According to the New York Times, under
Fisher’s management, Morgan Stanley
was a place in which “anybody could
walk into the boss’s office and disagree
with a decision.”
Fisher made himself available to employees. As New York Times writer Joseph Nocera put it, “He made people feel
good about themselves, and about the
firm.” It is little wonder that Morgan
Stanley enjoyed some of its best years
under his direction.
In contrast, Purcell surrounded himself with yes-men and didn’t even pretend to consider other’s opinions. He
took a my-way-or-the-highway approach
to management. It should come as little
surprise that so many opted for the highway.
In fact, autocratic leaders like Purcell
often find that it’s lonely at the top, particularly when things go wrong. They
have no good will to trade on during hard
times. They cannot do as Diana Pohly
did and ask the staff to make sacrifices
in a moment of crisis. That’s one reason
they’re a dying breed, and there’s nothing tough about becoming extinct. As
the saying goes, only the tough survive.
(Mary Corbitt Clark is the Executive
Director of Winning Workplaces, a notfor-profit organization that helps small
and mid-size businesses create better
work environments.)
3
(
1)
Leonards strive to achieve.
Discovering a scarcity in literature
promoting water safety geared to children aged 2 to 6 years, Stew and Kim
published “Stewie the Duck Learns to
Swim”. This entertaining book and video
help instill rules about water safety to
little children using a story and characters with which youngsters can relate.
Their second book, “Swimming Lessons with Stewie the Duck”, encourages children to take swimming lessons.
Since 1990, the Stew Leonard III Water Safety Foundation has been promoting water safety and has helped more
than 10,000 children learn to swim.
Through public service announcements, talk show engagements, financial contributions and literature, the
Leonards have committed themselves
to remind parents and teach children
about water safety. The foundation has
provided scholarships for swimming
lessons through the Fresh Air Fund,
Swim America and YMCA programs. It
has helped to train 200 lifeguards and
purchased water safety equipment for
YMCAs.
All of the proceeds from sales of
“Stewie the Duck” books and tapes go
to the Foundation to continue its good
works. The books are available at Stew
Leonard’s Stores, Amazon.com and
Barnes & Noble Book Stores in New York
and Connecticut.
The Foundation has been awarded the
first ever National Water Safety Education Award by the National Water Safety
Congress and the USA Swimming Safety
commendation for USA Swimming, a national group of swim coaches and athletes. Through their foundation, Stew and
Kim Leonard are doing all they can to keep
our children safe from water accidents.
They hope you will share their passion
and help teach children about water
safety.
Here are some good reasons why:
• About 350 children under five years old
drown in pools each year nationwide, and
over half of these incidents occur in June,
Member News
Central Communications, Inc.
Earns 2005 ATSI Award of
Excellence for Outstanding
Service
Paul Orvis, Vice President of Sales and
Marketing of CCI, is proud to announce
that the Association of TeleServices
International has awarded Central Communication an Award of Excellence for
2005. CCI serves as an answering service for a wide variety of businesses,
using the latest technology to take
messages, schedule appointments,
send reminders, etc. ATSI uses an independent program facilitator who
places random calls into participating
call centers and rates the quality of service, professionalism and compliance
with industry standards. Companies
who achieve a rating of 80% or more
receive the Award of Excellence for Outstanding Service.
In addition, ASTI created a customer
satisfaction benchmarking survey used
by CCI to rate customer satisfaction
4
with their services. 93% of customers who
completed the survey indicated above
average satisfaction with services provided.
CCI upgraded its service to include the
latest computer technology available in
2003. Orvis credits CCI’s success to a
concerted effort to obtain customer’s input into how well the company is meeting their needs and what other services
customers desire. CCI has increased staffing in their Customer Relations Department, and works to be sure all client information is accurate and up-to-date. The
company focuses on employee training
at all levels.
Orvis aims for more of the continued,
gradual growth which the company has
experienced since its inception in 1983.
In the future, he invisions CCI serving as
an off-site receptionist to many businesses, who can direct calls throughout
a company, without the caller ever knowing the receptionist is at a remote location.
July and August.
• More than half of drownings (60-90 percent) among children under the age of
four are pool related.
• A child can drown in the time it takes to
answer a phone.
• Seventy-seven percent of victims have
only been missing from sight for five minutes or less.
• For every one child who dies in a
drowning accident, approximately four
more are hospitalized for near-drowning,
many of whom wind up severely brain
damaged.
For more information, contact:
Stew Leonard III Water
Safety Foundation
100 Westport Avenue
Norwalk, CT 06841
phone 203-750-6121
or visit www.stewietheduck.com
Stew Leonard will be the presenter for
our October 18 conference. His honorarium for this engagement will go to
the Stew Leonard III Water Safety Foundation.
A Fresh Look for
AMARANTE’S SEA CLIFF
Amarante’s is proud to announce the
completion of many renovations. They
have completed the remodeling of one
of their dining rooms, The Inn. They’ve
also added a Bride’s Room, for freshening up on that special day, a conference
room and new bathroom facilities on the
second floor. By relocating their sales
offices to the second floor, they have
been able to accomodate an expansion
of the first floor dining room. Up to 150
people can now be comfortably
accomodated in The Inn.
Andrew Amarante, founder of
Amarante’s Sea Cliff is filled with pride
that Christopher Garceau (one of his 20
grandchildren) was graduated from West
Point on May 28, 2005. We salute you,
Christopher!
2nd Annual
NUTMEG DULCIMER FESTIVAL
Sept. 30- Oct. 1, 2005 • Hamden, CT
www.NutmegDulcimer.com
203-248-1053
essional Cor ner
of
Pr
ofessional
Prof
Deferred compensation viable for a controlling shareholder
by Daniel M. Smith, J.D. CFBS, AEP, CLTC, SCP Funding Sponsor
This article provides an overview of
deferred-compensation/salary-continuation arrangements for the controlling
shareholder of a corporation.
The market
“Controlling shareholder” is a term
referring to the Internal Revenue Code
(IRC) definition of an individual whose
stock ownership controls more than 50
percent of the total combined voting
power of a corporation. An individual
with voting control can dictate corporate policy by virtue of this voting
power.
While it may be the rare case that a
large, publicly held corporation has a
controlling shareholder, it is frequently
the case that small, closely held corporations are dominated by a single controlling shareholder.These individuals—the founders of the corporation—
are driven to succeed and take their
compensation packages very seriously.
For them, nonqualified deferred-compensation arrangements have played
and will continue to play an important
role in their overall compensation mix.
The factors making a nonqualified deferred-compensation plan attractive to
a controlling shareholder differ in quality and kind when the decision-maker
is the corporation.
For example, traditional selling points
such as creating incentives and retaining key employees are not an issue
where a controlling shareholder is involved. A controlling shareholder more
likely will be interested in the fact that
the deferred-compensation program
maximizes compensation, supplements
existing qualified plans and provides an
additional measure of family security
upon death or retirement.
For individuals already in the maximum income-tax bracket, the deferredcompensation plan is attractive since
the participant is not currently taxed on
money contributed to the plan (assuming we’re talking about a C corporation).
Life insurance strategy
In the context of a controlling-shareholder situation, a conventional deferred-compensation plan will utilize a
key-person life insurance policy to informally fund the plan.
A popular strategy for paying the
employee’s retirement benefits is for the
employer to utilize a combination of
withdrawals and loans. Although recent
tax laws have changed the rules regarding distributions from life insurance policies—provided that the policy is not a
modified endowment contract and no reduction in benefits takes place in the first
15 policy years—withdrawals to basis to
pay retirement benefits would still be income-tax-free to the employer.
Employer’s tax consequences
As far as the employer’s tax consequences are concerned, premiums paid
are not deductible, whereas the death
proceeds would be received by the corporation income-tax-free (absent any
potential corporate alternative minimum
tax, or AMT, implications).
The issue concerning the corporate
AMT is that when a key-person life insurance policy is used to informally fund
the plan, the AMT may be incurred when
either the annual cash-value increase exceeds the annual premium paid or the
death proceeds received exceed cumulative cash values.
Whether either item will trigger the corporate AMT depends on a number of facts,
and each situation must be carefully examined by the client’s tax and legal advisers.
Finally, when benefits are actually paid
to a retired employee, the payments will
be deductible by the employer, provided
they pass the test of “reasonableness.”
Employee’s tax consequences
In cases where the employer makes
payments to an employee’s designated
beneficiary, such payments will be taxable to the beneficiary as ordinary income less any deduction for estate taxes
paid for any amounts included in the
deceased employee’s gross estate.
Remember, if the employee dies prior
to receiving payments or at a time when
he or she was receiving payments, the
present value of the death benefit is included in the employee’s gross estate
for federal estate-tax purpose.
Structuring the plan to avoid
potential problems
There has been some concern that a
deferred-compensation plan that covers
only the majority or controlling shareholder/employee in a closely held corporation might give rise to a constructive dividend, probably in an amount
equal to the premium payments for any
life insurance policy used as an informal
funding vehicle.
There is also a concern about
whether benefit payments (when made)
.
will be deductible corporate expenses
under IRC Section 162 as reasonable
and necessary business expenses.
The latter issue is whether or not
payments benefited the recipient personally and not the corporation (for
example, a disguised dividend rather
than reasonable compensation for services actually rendered).
There are no absolute answers to
either of these potential problem areas.
The Internal Revenue Service will not
issue any advance ruling on the tax
consequences of an unfunded
nonqualified deferred-compensation
arrangement with respect to a controlling shareholder/employee (see Rev.
Proc 97-3).
Conclusion
In the case of a deferred-compensation plan where only a sole or majority
shareholder will be involved, it is essential to implement the plan as far in advance of retirement as possible. The
plan must appear to be for future services (not past services) and not merely
an attempt to distribute dividends to a
shareholder on an income-tax-deductible basis.
One business purpose for the deferred-compensation program might be
prior inadequate salary. Typically, a
newly formed corporation will not be able
to compensate adequately its principal
shareholder/executive currently for the
value of his or her services. The corporation could document this inadequacy now,
as well as its intention to pay the principal executive later what it can’t afford to
pay at the present time.
In summary, the IRS’s position seems
to be that these cases are inherently factually oriented. The IRS is suspicious of
such situations and will scrutinize them
carefully.
This is another area where clients
are urged to seek the opinion and expert guidance of their own legal and
tax advisers. Still, given the right situation, a nonqualified deferred-compensation strategy could be a viable planning
alternative even if one of the plan participants is a controlling shareholder.
5
W ha
s Ar
e Sa
ying
hatt Our Member
Members
Are
Saying
We asked our members: What is the most important benefit you receive from
your Membership in CFB?
From a personal standpoint, the Center has given Caroll and me the insight
to understand that ALL family businesses have the same basic problems
to some degree. It made us realize we
were not alone with our issues.
From a family standpoint, I believe
that the children have gained an understanding that they were not alone
either.
The “Center Experience” has been
great for all concerned here at CRT.
Tom Romano
CRT Associates
The best benefit is the interaction with
“peers” at the monthly dinners (small
group) ...in the beginning, it helped Dad
and I get through the transition issues.
I find it is helpful, reassuring and useful knowing the group is there if
needed, and to assist the others.
Joe Grushkin
Unishippers
I value the information gathering at
the monthly meetings the most. They
usually help me to see opportunity for
change in a different light. I believe the
sessions are well targeted towards our
group or, at least, for my company.
Paul W. Orvis IV
Central Communications, Inc.
Besides the good dinners, I would say
the ability to be able to discuss business problems and issues with people
and get feedback.
Ed Kirik
Syntex Rubber Corporation
For me and ESI, I would have to say
Paul Sessions. I think the Management
Forums and the programs allow us to
think outside the box and have a venue
to discuss those issues that need to be
discussed.
Ron DelFini
ESI
New Ideas.
Rose Esposito
A.A. DiMatteo
6
Meeting people with similar problems
and sharing and learning from each other
- that’s what first comes to mind.
Elena Moffly
Moffly Publications
As our family discusses the value of
the group so far, we seem to be invigorated by the dialogues we have with others during the cocktail hour and at the
dinner table.
Don Kaiser
Kaiser Whitney Staffing
With the conferences, it’s the blend of
social networking, dining and information/education with members of our company or family. My employees (and occasionally their spouses) enjoy the evenings and feel special to be included.
Ken Bryant
Bead Industries
The biggest benefit for me is the Management Forum dinners we have every
month. It’s important to me to be able to
raise an issue and have the group focus
on solutions. Plus, hearing other people’s
issues often triggers ideas for me as well.
Brian Rivel
Rivel Research Group
It is knowing that there is a resource I
can go to when I get to the point where I
have some very real and very personal
issues to address in my family business.
I have not “used” this resource, but I
may at some point. I enjoy the business
contacts and especially feel the Women’s
Group is becoming a friendship as well
as a venue to bounce ideas around.
Anne King
J.E. Shepard Co.
I think that the most important benefit
is the contact and friendship with other
members.
W. Stephen West
National Sintered Alloys
In a word - THE SEMINARS.
Jordy Scott
Glen Gate Company
I have found my membership in CFB
highly beneficial over the years. I have
also found that what I want from it has
evolved throughout the years. Over a
ten year period, we have covered similar
ground in the seminars although you
have managed to keep it interesting and
I regret we have missed a number of
them.
Getting back to the evolution, I find
that among the reasons that I enjoy coming to the Leadership Meetings is being
in the company of people who tend to
think similarly, and the insights I gain in
running a business regardless of
whether or not it is a family enterprise.
To a certain extent, these folks in the Leadership Forum, have evolved into the
board of directors that has been touted
by many of the experts you have brought
into the seminars.
Ben Lebov
Aaron Supreme
Persistence to getting things done relating to transitioning.
Brian Cullinane
Clover Corporation
CFB makes me feel I am not alone and
the only family business out there. There
are many other family businesses with
the same problems I face.
Don Barker
Creative Product Development
The variety in the speakers has
brought many thoughts to mind that
might not have been considered otherwise. Most have been applicable to the
work place, though some have answered
questions on a personal level as well.
Also, the networking at the dinners is
beneficial.
Viola Tagliatela
Saybrook Point Inn/
Franklin Enterprises
An informative, pleasant night out that
hits the mark with good, useful information.
Stan Robison
Stanpak
FALL SCHEDULE
Family Business into Perpetuity
Tuesday, September 13, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
Jason Jennings: Think Big, Act Small: How America’s Best Performing Companies
Keep the Start-Up Spirit Alive. Jennings screened 100,000 companies to identify littleknown firms who achieved outstanding performance over a decade, in spite of the fluctuating
economy. Despite the diversity of the industries these firms represented, Jennings has
identified many common denominators he feels are responsible for their stellar performances.
Jason Jennings will share his perceptions with the audience. Participants will also receive a
copy of Jennings’ latest book.
Tuesday, October 18, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
S.T.E.W.: Satisfy the customer; work together as a Team; strive for Excellence; and
get the customer to say Wow, presented by Stew Leonard, Jr.
Stew Leonard, Jr.’s family has been in the dairy farm and milk delivery business since the
1920’s. Today, Ripley’s Believe It or Not has dubbed Stew Leonard’s the “World’s Largest
Dairy Store”. The New York Times calls it the “Disney Land of Dairy Stores”. Stew Leonard,
Jr. will share with us his experiences in this unique retail environment. The family’s business
philosophy etched in 3-ton granite at each of their store entrances is: “Rule #1-The Customer
is Always Right”, Rule #2 - If the Customer is Ever Wrong, Re-Read Rule #1.”
Tuesday, November 8, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
Wednesday, November 9 , 2005 • 8:30 - 11:30 a.m. • La Colline Verte/Fairfield
Oasis in the Overwhelm, presented by Millie Grenough
In today’s world, the four leading causes of death have a clear relationship to stress.
Obviously, we cannot eliminate stress from our lives, nor should we wish to. Stress is a
natural reaction to life’s situations which can be constructive or overwhelming, depending
upon how we handle it. Millie’s proven 60-second methods for dealing with stress will
help you improve your health and can be easily taught to your employees.
Tuesday, December 13, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
Wednesday, December 14 , 2005 • 8:30 - 11:30 a.m. • La Colline Verte/Fairfield
Is Birth Order Ruining Your Succession Plan?, presented by Frank Sulloway
Author of Born to Rebel, Sulloway will share insights he has gained from his extensive
research on birth order, and the problems most threatening to the survival of family firms.
Member News
EASTERN LAND MANAGEMENT PREPARING
FOR SUCCESSION
Bruce Moore, Sr., president and
founder of Eastern Land Management
is proud to announce the appointment
of his son to Landscape Management
Department Team Leader. This appointment marks the beginning of preparing Bruce Moore, Jr., to eventually
take over leadership of Eastern Land
Management.
Bruce Moore, Jr., is a recent graduate
of Curry College. He grew up in his
family business and since his early
teens has gained experience in the field
and performing administrative functions for ELM. This father-and-son
team recently spent a week shadowing another leading maintenance company. Both father and son are aware
of the critical need for the younger
Moore to cultivate relationships with
employees, clients and the industry.
Bruce Moore, Jr., plans to use his time
learning as much as he can from his
dad, who has no immediate plans to
Your legacy will assure the future of
family businesses in Connecticut in perpetuity.
As an astute businessperson, you
are aware of your giving options:
• A direct donation restricted for a
specific use in the Center for Family Business.
• A direct donation unrestricted for
the Center for Family Business.
• A gift in kind (for example: computers; hardware; etc.).
• A CHARITABLE GIFT
ANNUITY.
What exactly is a Charitable Gift
Annuity?
At its heart, a gift annuity is simply a
contract between a donor and a charity such as the Center for Family Business. In exchange for a gift of a
specified amount, we agree to make
specified annual payments for life to
one or two beneficiaries (annuitants).
If you have a specific interest in arranging
a charitable gift annuity plan for the Center for Family Business, please feel free to
contact, Daniel M. Smith, J.D., Founding
Sponsor of the Center for Family Business, Certified Family Business Specialist, and Accredited Estate Planner at 860399-3614.
retire. Bruce Moore, Sr., is proud that his
son wishes to carry on the business he
started nearly three decades ago.
Eastern Land Management, Inc., provides
landscape and exterior site management
services to commercial and distinctive residential property owners/managers in
Fairfield and Westchester Counties.
WORK TOGETHER
PLAY TOGETHER
Topstone, a beautiful 18 Hole, Par 72
Championship Golf Course, and Willow
Brook, an 18 hole, Par 60 Executive Course
boast some of the best conditions of any
public courses in Connecticut. Located in
South Windsor, each offers instruction, a
Pro Shop and restaurant.
Anne King suggests bringing your family or associates for a day of golf followed
by lunch or dinner. She would be happy
to assist with arranging for any CFB members to have a day on either course.
Both courses are ideal settings for a
fundraising or social event. Check them
out on the web at www.topstonegc.com
and www.willowbrookgc.com
Celebrating 10 Years of
Service to Family Business.
UNH FOUNDATION
The Center for Family Business is operated under the auspices of the UNH
Foundation, directed by M.L.
McLaughlin, Ph.D., President/CEO.
Family Equity is a publication of the Center
for Family Business at the University of New
Haven. Family Equity is distributed for general information purposes only and is not intended to render legal, accounting, or other
professional advice. Accordingly, readers
should not act upon information in this publication without seeking professional advice.
Copyrights to the articles in this newsletter
remain with the authors.
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Center Sponsors
The Center for Family Business is sponsored by the following firms,
whom we thank for their support and active participation
Wiggin and Dana, one of the foremost
law firms in Connecticut, offers a complete range of legal services
including total business and personal legal support to organizations
and private firms and their principals and families. Wiggin and Dana
prides itself on taking the time to understand each client’s business,
industry, needs and goals, thus providing intelligent, practical, and
cost-effective counsel to family businesses. For more information, contact Len Leader at 203-363-7602.
Gowrie, Brett & Young provides Group Benefits and Human Resource
support through its unique Service Center staffed by a fully licensed
support team. Gowrie, Barden & Brett has served the needs of family
businesses for over thirty years with commercial, maritime and
workman’s compensation programs. Call Dan Smith at 860-399-3614.
MassMutual sponsors more than 50 university-based family business forums nationwide. MassMutual has produced educational guides,
workbooks, videos, and an interactive CD-ROM on family business
succession; sponsored four national surveys of family businesses;
and awards the National Family Business of the Year award annually.
One of the oldest, largest and most highly rated life insurance companies, MassMutual has served family businesses since 1851. For more
information, contact Trung Trang at 203-259-5575.
UNH FOUNDATION
UNIVERSITY OF NEW HAVEN
300 BOSTON POST ROAD
WEST HAVEN, CT 06516
Tel: (203) 932-7421
Celebrating 10 Years of Fax (203) 931-6036
Service to Family Business www.newhaven.edu/cfb/
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Bailey Schaefer & Errato, LLC
Certified Public Accountants
BSE is a certified public accounting firm servicing clients in accounting, auditing, business valuations, tax and estate planning. BSE’s clientele
includes those in manufacturing, wholesale, construction, professional services and retail. Their
mission statement: “Through personal and dedicated service, we work
in partnership with our clients for their continued success.” For more
information, contact Andy Errato at 203-481-1120.
U.S. Trust is an investment management
firm that specializes in providing financial services for affluent individuals, families, private foundations and non-profit
organizations.Founded in 1853 by a group of financial pioneers,
U.S. Trust’s primary focus is to enhance and preserve the wealth of
our clients. Through the years, we have built an enviable reputation
for superior performance, quality service and commitment to enduring client relationships. Our tradition of providing professional expertise with comprehensive trust and estate planning, investment
management and private banking has met the financial goals of generations of affluent Americans and the institutions they create. For
more information, contact Denise Davis at 203-352-4493.
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