Why Many Business Owners Hide Their Wealth, Even From Family
Many business owners keep their wealth quiet, even from their own families. Prof. Enrique Soriano, a family business advisor and governance consultant, says worry about the next generation is a major reason. He calls it the “inheritor’s dilemma.”
Soriano says many business leaders lack confidence in the next generation’s commitment to the business. As wealth grows, owners worry about how sudden money will affect their children. He warns that ignoring this concern can block succession plans for decades.
The Inheritor’s Dilemma in Family Business Succession
In 2011, movie star Jackie Chan announced that he would give half of his money to charity when he dies. He added that he did not plan to leave the millions he earned during his film career to his son, Jaycee.
Channel NewsAsia quoted Chan as saying: “If he is capable, he can make his own money. If he is not, then he will just be wasting my money.”
Soriano points to a case cited by Prof. Joseph P.H. Fan in his book, “Critical Generations – Out of the Succession Dilemma of Chinese Family Businesses.” It involves Taiwanese businessman Wang Yung-Ching, known as Y.C. Wang.
Wang wanted to avoid conflict within his large family after he died. To do that, he transferred controlling ownership of Formosa Plastics Group to a charitable foundation. His goal was to shield the business from an expected family dispute.
Wang set rules for the transfer. No family members could be beneficiaries of the assets. All income had to be reinvested in the business, donated for charitable purposes, or both.
The rules also barred family members from serving as managers unless they were vetted. According to Soriano, when Wang died at 91, the transfer achieved business continuity and sheltered the company from infighting.
Why Owners Keep Wealth Quiet and Protect Family Businesses
Soriano also cites Yu Pang-Lin, a high-profile real estate billionaire based in Hong Kong. Yu died at 92 in 2015. Five years earlier, he announced that he would entrust his entire wealth, valued at $1.5 billion, to a bank to be donated to charity after his death.
Yu was believed to be China’s first billionaire to donate his entire fortune to charity. He once said: “If my children are more capable than me, it’s not necessary to leave a lot of money to them. If they are incompetent, a lot of money will only be harmful to them.”
Soriano says children of affluent parents have not had time to build identities apart from the wealth and status of the business. They may find it challenging to develop self-confidence and healthy relationships.
The messages heirs receive can also conflict. Soriano says successors may be told, “Do whatever you want with the inheritance.” Yet they are also encouraged to “give back to society.”
Public views add to the pressure. Entrepreneurs are admired today, but negative stereotypes attach to the privileged few. No wonder, Soriano writes, many business owners try to keep newly earned wealth under the radar, even from their own families.
Soriano will lead a workshop titled “The Family Shareholders’ Agreement” on Saturday, Oct. 17, 2026, at Makati Sports Club. Atty. Apollo “Pol” Sangalang, a corporate and legal practitioner, will co-lead it.
The workshop is aimed at micro, small and medium enterprises and family-owned businesses looking to strengthen governance as they grow. Participants will gain real-life case examples, guided discussions and actionable recommendations.
The fee is Php 7,900, exclusive of VAT and net of EWT. It is non-refundable. Register at https://forms.gle/KEi7UKUQfPriueb28.
Seats are limited, and early reservation is encouraged. For inquiries, registration assistance or sponsorships, contact Christine at 0917 324 7216 or service@wbadvisoryasia.com.
