Who appoints the ESOP fiduciaries?
The company’s board of directors may appoint a trustee or trustees who make decisions about the ESOPs investment in company stock. The ESOP trustee(s) could be officers or employees of the company, an independent bank or trust company, or disinterested individuals. It is not uncommon for an ESOP trustee to be directed by an individual, committee or other named fiduciary identified in the ESOP plan document. In these cases, the named fiduciary will be primarily responsible for fulfilling the fiduciary responsibilities discussed in Question 8. Return to the top of the page.
