A nonprofit membership organization providing unbiased information and research on broad-based employee stock plans

ESOP Corporate Governance Resources

Governance in ESOP companies touches on many issues, including the role and composition of the board, trustee duties, and executive compensation. Board members need to understand their duties both under state corporate law and under ERISA (the Employee Retirement Income Security Act of 1974, which sets standards for retirement plans such as ESOPs); fiduciaries need to understand and monitor how ESOPs work and how stock is appraised; and executive compensation should be fair, reasonable, and effective. The NCEO offers detailed guides to all these issues, as well as hands-on training and practical webinars.