The Role of the Board in Employee-Ownership Governance  - CLEO Skip to main content


One of the common misconceptions about employee stock ownership plan (ESOP) companies among the general public is that they are inefficient because of the necessity to constantly respond to scrutiny from employees (which, of course, isn’t true) and constant oversight of government regulators (which is occasionally true, but in the long run, mostly a good thing). Over the years, though, ESOP companies have developed an operating style, unique to them that responds to this and is based on a dynamic collaboration among three entities.