ESOP Governance Tip

Some ESOP companies want to get employees and/or outsiders involved at the board level, but do not want them to have fiduciary obligations. They may also want them only for certain parts of a meeting or for certain meetings. Nothing in corporate law prevents a company from having people serve in a non-fiduciary advisory capacity to the board. By institutionalizing that, you can get a lot of the benefit of getting people who can add value without exposing them to excessive risk.