ESOP Committee Guide

2nd ed. (October 2005). 114 pp. (6" x 9"), softcover. $25 for NCEO members; $35 for nonmembers.

This book describes the different types of ESOP committees; the range of goals they can address; alternative structures; member selection criteria; training; committee life cycle concerns; and other issues. It includes several case studies. Note: This book is for companies with employee stock ownership plans (ESOPs); as with our other ESOP books, it has nothing to do with stock options.

Preface
ESOP Committees: An Overview
Duties of the ESOP Committee
ESOP Committee Development
Developing an Effective ESOP Communications Committee
The Parametrix ESOP Committee
Case Studies:
The Braas Company
Carris Reels, Inc.
Ewing & Thomas
Phelps County Bank
Rieth-Riley Construction Co., Inc.

Excerpts

From Chapter 1, "ESOP Committees: An Overview"

At the most basic level, an ESOP committee can be any group of employees that is assigned any set of legally permissible ESOP-related tasks in an ESOP company. The single most important characteristic that distinguishes an ESOP committee from other types of employee committees is that its purpose is to contribute to improved achievement of a company's strategic ownership objectives. This raises the questions: what are the company's ownership objectives, and how do these objectives support the overall strategic direction of the business? Different companies have dramatically different answers to these questions, and as a result their ESOP committees should and do take on very different forms and duties.

What distinguishes different types of ESOP committees from one another is the range of strategic ownership objectives that they are intended to support and therefore the specific issues for which they are assigned responsibility. This definition purposely includes a broad range of committees that do very different things. An "ESOP Committee" is just one name for a team of employees with these specific types of responsibilities. Many have other titles, such as Ownership Committee, ESOP Advisory Council, ESOP Fiduciary Committee, and/or more broadly defined employee participation teams and structures. Ultimately, the name of the committee only matters as an indicator of the tasks and responsibilities with which it is charged. There are no "correct" or "incorrect" goals or names. What is essential is that all aspects of the committee's structure and function should be aligned to support its purposes.

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ESOP Committee Guide

Contents

Excerpts

From Chapter 1, "ESOP Committees: An Overview"

How to Order