A Carefully Constructed Succession Plan for Ghilotti Brothers Construction
Reprinted from Family Business Magazine by Beth Braverman, August 29, 2024
Bay Area construction company Ghilotti Brothers has a 10-year timeline for transitioning from the third to the fourth generation.
Like anyone else traveling through the San Francisco Bay area, Gino Ghilotti often spotted trucks bearing the name of his family's construction company, Ghilotti Brothers, on local roads. For Gino, a fourth-generation family member, the vehicles were a visible reminder of the responsibilities that come with his last name.
“As a kid, I was definitely hyper-aware of that, and kind of wrestling with it,” says Gino, 28. “Thinking about what it means for that to be part of my identity and wrestling and digesting that.”
After spending summers working at the company, Gino had to spend some time thinking about his identity and passions, and whether they would fit with the family business in the long term. In 2019, after college graduation, he joined the firm full-time as a project manager.
By last year, Gino and his father, Mike Ghilotti, 62, the current president of the 110-year-old company, were in serious discussions about how to set up Gino to take over the business one day. Gino was excited about the opportunity but was also still struggling with defining his own identity. He wanted to be intentional about the succession process,
“Since coming to the company, I've been mindful of my last name and not wanting to abuse it by ordering people around because of who I am,” he says. “I'm grateful for the life I was given, but I don't want to be entitled. I look at this as an opportunity to work hard and gain influence by building relationships over time.”
110 Years of Growth
Ghilotti Brothers has operated in the Bay Area since 1914, when Mike's grandfather, James Ghilotti, started doing stone masonry work in San Rafael, Calif. Since then, it's grown to a nearly 300-person business with $150 million in annual revenue. Among the firm's high-profile projects are renovating Crissy Field in Golden Gate Park, a seven-phase effort to widen Route 101 and replacing the concrete subsurface and brick paving on Lombard Street, known as “The Crookedest Street in the World.”
James, an Italian immigrant, built up the business and brought in four of his sons, changing the name in 1939 to James Ghilotti and Sons. The brothers took over the business in 1950, renaming it Ghilotti Brothers. Today, it provides grading, paving and concrete services throughout the region.
While Gino is the only one of his four siblings interested in taking the mantle at Ghilotti Brothers, he and his father are still taking succession planning seriously. They've hired the consulting firm Orange Kiwi, which specializes in helping family businesses manage transitions.
Business psychologist and Orange Kiwi CEO Allie Taylor has been working with the father and son on a succession plan.
“The Ghilottis are very proud Italian immigrants, and the family's story and legacy are so important for Mike and his wife, Lisa, to preserve. That, and their love for their kids, are the key drivers behind their desire to do succession well,” Taylor says.
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