More than half of Dutch family businesses lack a dividend policy

Recent research by Nyenrode Business University, RSM, and Van Lanschot Kempen among 130 large Dutch family businesses reveals that less than half—46%—have a formal dividend policy in place. This means that the majority still make decisions about dividend distributions without established guidelines, potentially missing opportunities for greater transparency, stability, and harmony within the family. According to the researchers, the lack of clear agreements and formal policies highlights a strong need for further professionalisation of governance in family businesses. 

The survey found that businesses with multiple owners are somewhat more likely to have a dividend policy than those with a single owner. However, even among these companies, over half decide on dividend payouts on a case-by-case basis, rather than according to set rules. Where policies do exist, almost half link dividends to a fixed percentage of profits, an approach much less common among firms without a formal policy. According to experts from the participating institutions, the absence of clear rules may result in confusion, disappointment, and even conflict among shareholders and family members, potentially putting the business’s continuity at risk. 

Despite these challenges, dividend payouts remain common in the Dutch family business landscape. 81% of companies reported distributing dividends at least once in the past three years, with almost half doing so every year. The most frequently cited reasons include moving wealth out of the core business for risk management and tax purposes, as well as meeting obligations to multiple shareholders. 

Not all businesses choose to pay dividends: some prefer to reinvest profits in order to finance growth from their own resources or to strengthen their balance sheet. A significant proportion of respondents also indicated that having a supervisory or advisory board nearly doubles the chances of a formal dividend policy being in place. 

For more details, please refer to the full Dutch press release: “Meer dan helft familiebedrijven mist dividendbeleid.”