New Data on Corporate Governance in ESOP Companies
Executive Director
The NCEO's most recent survey of corporate governance practices in ESOP companies shows the current status of boards of directors, ESOP trustees, and governance policies for ESOP companies. For example, 74% of responding companies reported that they have at least one independent director on their board. The three most common board committees are compensation/personnel, audit/finance, and governance/nominating. With regard to trustees, ESOP companies have a diversity of practice, with outside trustees being the most common form reported (43% of respondents), although that number is likely higher in the context of trustees during a stock transaction. The survey also looked at a variety of governance policies. For example, although many professionals advise ESOP boards to adopt policies about how they will manage offers to purchase the company, only 35% of respondents report having such a policy.
More findings will be in our member newsletter and future publications.