Fortune recently published an article “How the Great Wealth Transfer could quietly disrupt corporate America’s leadership pipeline” which has an interesting take on financial security, climbing the corporate ladder, and entrepreneurship. At Forward Inheritance, we come from the family perspective, and there are many tie-ins here. The fundamental question of the piece is:
“If financial security arrives before the corner office does, why would the most talented people keep climbing the corporate ladder? For decades, big companies could count on one thing. Enough ambitious people would tolerate the grind because the ladder promised money, status, and security. But as trillions move from older Americans to their heirs, that bargain may begin to change.”
This is a fair question to ask, and it has family implications. Without the financial security of a known-inheritance, the next generation might be forced to grind out days and years in a low agency role that underutilizes their potential. And like the perspective below, I remain unconvinced that an orderly estate transition will lead to lower hustle by the next generation.
“Few executives are better positioned to see that tension than Penny Pennington, CEO of Edward Jones, who sits at the intersection of wealth management and the corner office. When asked whether the prestige and drive of becoming CEO begin to fade when wealth arrives before the career payoff, she challenges the premise that the climb was ever only about money. “I fundamentally believe in the human desire to prosper and to have well-being in a holistic way,” she tells Fortune. Ambition, she argues, does not disappear with financial security. But it does need to be attached to purpose.”
Maybe the next generation doesn’t see the juice in the squeeze to be the CEO of a publicly traded company. But maybe the next generation does see the value of being their own boss. Of being an entrepreneur. Of providing for their family while spending time with their family. Maybe there could be a better way. Maybe this is where they find their purpose. Together, we can all move our families forward…