Acknowledge the specific problem in front of you but also generalize: nepotism is bad, and nobody wants to work at a family firm. Create new nepotism rules goin

Acknowledge the specific problem in front of you but also generalize: nepotism is bad, and nobody wants to work at a family firm. Create new nepotism rules going forward. “Grandfather” in the wife’s current status on current projects, but make it clear she won’t have a favored position on new projects. Make it clear any equity to the wife will come from her husband.