Leadership

Governance and Employee Ownership

Creating an effective governance structure is critical for the long-term sustainability of an employee owned company.

ESOP companies often have complex governance structures and may find it difficult to navigate the roles, responsibilities and relationships of the board, trustees, other shareholders, CEO and senior leadership. For instance, one individual may serve in multiple roles as trustee, board member and senior leader of the firm. Selecting and including external board members and external trustees may also create new challenges and uncertainties.

Praxis will work with your company to:

Clarify roles and responsibilities of board, trustee(s), other shareholder(s), the CEO, senior leaders and other ESOP and employee committees.
Design and establish criteria for board and trustee selection
Design employee a participation structure for companies who want employees involved in governance-level decisions (e.g. employee vote for the board and/or employee representative on the board)
Provides training to ensure people in these roles are equipped with the appropriate skills and capacities
Advise boards about how to demystify the role of the board for employee owners