Alternative Models of Governance
In this book, we have primarily limited ourselves to an examination of the governance practices of publicly traded corporations. Many features of this system are imposed on the firm either by legislative, regulatory, and listing requirements or by market pressures exerted by public shareholders and other providers of capital.
In this chapter, we consider four alternative models of governance: those adopted by family-controlled businesses, venture-backed companies, private equity–owned companies, and nonprofit organizations. Each of these types of organization must deal with its own set of challenges related to ownership, control, and purpose. As a result, the solutions they elect are somewhat different from ...