TITLE

The Art of Resilient Capital Planning for Executive Compensation, Estate Planning, and Philanthropy

AUTHOR(S)
Bronfman, Mark C.
PUB. DATE
July 2009
SOURCE
Journal of Financial Planning;Jul2009, Vol. 22 Issue 7, p50
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
• In these volatile and challenging economic times, business owners need a more resilient and holistic approach to business succession planning. The author presents a Resilient Capital Planning model for executive compensation, estate planning, and philanthropy designed to integrate the personal and business demands related to many facets of business owner planning. • A business owner who optimizes capital across the business itself, the business owner's personal needs, and the needs of third-party stakeholders (such as executive talent, multi-generational family, etc.) is in a better position to grow the business, control business succession, and proactively transform the lives of those around the business. The model encourages frequent planning during the five predictable stages of the business owner lifecycle with an emphasis on strategic value sharing with third-party stakeholders. • The model relies upon three core tool sets: self-correcting strategies, values-based decision-making, and dynamic stress-testing through the use of scenarios. Each of the tool sets is introduced and further expanded via the use of a hypothetical business owner case study. • The model stress-testing goes far beyond simple sensitivity analysis. The entire plan is mapped and then programmatically challenged using classical scenario analysis. This model helps articulate and document the business owner plan so the entire advisory team can coordinate effectively. • Business owner planning is fundamentally more expansive than personal planning. The Resilient Capital Planning model helps broaden the planning scope and integrates self-correcting and values-based planning techniques to position the business owner to achieve his or her long-term goals.
ACCESSION #
43253468

 

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