Strategic Black partners, together with broad-based trusts drive real transformation
Many companies have implemented a broad-based Trust or Employee Share Ownership Plan (ESOP) as a sole ownership initiative. Many of these schemes are structured with strong governance and meaningful benefits flowing to participants. There are however a number of the schemes that are ‘fronts’ with neither the fiduciaries nor the beneficiaries understanding the scheme nor being able to participate in a meaningful manner.
We will assist you with the selection of the best individuals who will complement and collaborate with existing board members. This minimises the potential for conflict and maximising capacity for performance.
- Board assessment and advisory
- Benchmarking of internal referrals from existing board members for fit
- Board placement
- Executive coaching
Our talent experts work with clients to assist them in identifying the appropriate Trustees for their broad-based Trusts.
The Department of Trade and Industry (dti) has been concerned about these abuses. These concerns are further exacerbated in schemes where there are Trustees without the prerequisite commercial acumen to negotiate a fair transaction. Without the appropriate skill set and industry sector expertise, the Trustees of Trusts are limited to providing meaningful input in the company. As a result, they are not in a position to drive transformation.
Companies need to ensure that they do not fall foul of the legislation, as directors and advisors’ fiduciaries who knowingly contribute to fronting practices are liable for criminal sanction.
To ensure that a scheme is robust, companies need to make certain that the scheme has proper governance through having the right combination and calibre of Trustees. We are assisting our clients providing executive search methodology to identify strong, experienced Trustees to ensure strong governance and applicable value flowing to beneficiaries. These experienced Trustees can ensure there is a proper valuation on the implementation of a transaction and at the exit, to ensure that the fair value flows to the Trust.
Regulatory compliance is not enough to ensure effective performance of a board.
These boards need to be led by qualified individuals who are professionally matched to the needs of the business. In developing and responding to the needs of boards we look at the current composition of these boards and seek to advise our clients on the ‘right future mix’ of executives to support their strategy. We assess candidates’ readiness and identify gaps for interventions.