How Your Board Supports the Success of Your ESOP

Boards in ESOP companies do many things. Some of these functions are common to all company boards -- e.g. oversight of strategy, financial performance, risk and compliance, leadership & executive succession, and executive comp and incentives. Other board functions are unique to ESOP-owned firms -- e.g., appointing and monitoring ESOP fiduciaries, serving the ESOP as a unique type of shareholder, and monitoring and funding ESOP repurchase obligations.
We'll start with a light overview of the purposes of the ESOP -- typically "shareholder liquidity PLUS continued independence of the company," and then focus on how the board's understanding and effective execution of these roles contributes to company growth, creating value for employee-owners, and maintaining independent ownership. We will actively encourage attendee questions and illustrate with specific examples from their experience and ours.

Learning Objectives

1. Highlight common board functions in an ESOP company.
2. Illustrate the board's role in the success of ESOP companies.
3. Share attendees' and presenter's "how we do it" experiences to illustrate the above frameworks.