The January 4, 2010 Employee Ownership Update is online and discusses the following:
- New NCEO Data on ESOP Trustee Practices
- Senator Sanders Introduces Legislation to Promote Employee Ownership
- Performance Shares?
- Apply Now for Winning Workplaces Awards
- NCEO Executive Director Search Closed
We recently discussed some results from the NCEO's latest corporate governance study in ESOP Board Practices. The Update discusses more results from the study:
A new NCEO survey on ESOP governance practices shows that 13% of the responding companies have an independent institutional trustee, while another 4% have an independent individual trustee. That is down from 21% in 2005, although within the margin of sampling error. In addition, 11% of the companies have trustee committees with at least one outside independent member on them (we did not ask this question in 2005). The median compensation for independent trustees was $22,800. The board selected the trustee 71% of the time, senior management 18%, and an ESOP committee 11%.
It also discusses the state programs provided for in S. 2909: A bill to provide State programs to encourage employee ownership and participation in business decision-making throughout the United States, and for other purposes and how NCEO research on similar state programs found that the state program increased employee ownership plans by "about 20% to 33%". The federal loan guarantee program provided for in S. 2914: A bill to provide for the establishment of the United States Employee Ownership Bank, and for other purposes is also discussed.
The Update also explores the similarities and differences between traditional stock awards and performance shares.