MANILA, Philippines — Family businesses thrive on legacy, but without strong leadership preparation, even the most successful empires can collapse. The ongoing power struggle at City Developments Ltd. (CDL) in Singapore is a stark reminder of what happens when succession planning fails.
CDL’s executive chair, Kwek Leng Beng, took legal action against his son, CEO Sherman Kwek, accusing him of consolidating power and threatening governance. Despite being groomed for leadership, Sherman oversaw $1.4 billion in losses, leading his father to make a painful decision: “As a father, firing my son was not an easy decision, but the stakes were simply too high.”
This scenario is not unique to CDL. Many family businesses assume inheritance equates to leadership, ignoring the need for governance, values, and preparation. A multibillion-dollar Asian conglomerate faced a similar fate in 2015 when an unprepared heir took over, leading to boardroom conflicts, sibling rivalries, and financial turmoil.
Many heirs struggle with leadership, admitting: “My father built an empire, but he never prepared us to lead.” Succession is not just about passing down wealth—it requires instilling capability, character, and a shared vision. Without these, even the strongest businesses risk crumbling.