Today, most ESOP companies are more than 50% employee-owned (of these, most are 100% S corporation ESOPs). In such firms, trustees typically negotiate the requirement for outside independent directors on the board (often a majority of the board). The board, of course, has substantial long-term legal responsibilities. We’ll present essential information for existing and candidate directors to be effective board members. We’ll mention the most commonly requested attributes for ESOP board members for both inside and independent outside directors. We’ll also discuss the most important ongoing responsibilities, including the number one issue: succession planning for the leadership team members and the board members. This presentation is an overview of the information required to be a successful director. As such, it’s a must for existing board members and particularly for all candidate members. The intended audience is senior managers and leadership team members.
Gain an overview of ESOP company governance between the trustee, the board, and the leadership team. This background is essential to participate in effective company governance.
Understand the most commonly requested personal attributes of effective directors. Against this disclosure, assess your own skills and attributes for likely success in this area.
Gain knowledge of the most important responsibilities of the board and its directors. This essential information will guide participants in their assessment of the experience required to be successful as a board member.
