Corporate Governance: The Jack Wright Series (13) a Not-for-Profit Organization
3 Pages Posted: 30 May 2017
Abstract
This last case in the Jack Wright series describes the issues facing a not-for-profit organization. The case outlines several strategic issues.
Excerpt
UVA-OM-1095
Rev. May 16, 2011
corporate governance: The jack wright series (13)
A Not-For-Profit Organization
When Sid Bigger and his wife died in 1965, they left 25% of the company to a charitable trust and the balance split equally between their two children, Sam and Sally. Their motives were both philanthropic and to reduce estate taxes.
The company had sales of $ 100 million and, after taxes, was making about $ 5 million. The book value of the equity was $ 50 million. So at book value, the trust was worth about $ 12.5 million. Each child received 37.5%, worth $ 18.75 million, and the two were appointed trustees of the charitable foundation.
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Keywords: compensation, employee, legal aspects, board of directors, corporate governance
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