Kormotech, a Ukrainian family-run pet food company, has grown to $210 million in revenue and ranks among the world’s top 50 pet food manufacturers. Founded in 2003 by a father, daughter, and son, the company’s CEO since 2008 recently recognized that his management style was limiting further growth. In early 2024, Kormotech appointed a supervisory board with independent directors holding majority voting rights to support its goal of global expansion amid the ongoing war in Ukraine, according to fortune.com.
The CEO, who initially made decisions quickly and trusted his intuition, acknowledged becoming a bottleneck as the company aimed to globalize. The supervisory board, established during the spring of 2022 when Russia’s full-scale invasion began, now holds five out of nine votes, allowing it to block the CEO’s decisions. This shift required the CEO to share power and relinquish some control, marking a significant transformation in the company’s governance and management approach.
Kormotech’s move to introduce independent directors and share decision-making authority reflects broader challenges faced by Ukrainian businesses during the war. The company’s leadership recognized that evolving management practices were necessary to sustain growth and compete globally. This governance change aligns with the company’s 2021 goal to become a global player, demonstrating how family businesses can adapt to external pressures and internal growth needs.
The supervisory board began its work in early 2024, marking a new chapter for Kormotech’s governance structure. The CEO’s acceptance of the board’s majority voting rights underscores a strategic shift to support the company’s global ambitions despite the ongoing conflict in Ukraine.