Most of the time, they include groups of administrators, but they can include outsiders, such as for example. B an independent member of the board of directors, a financial or legal expert or a former member of staff. Some committees also have non-managerial staff on the committee. While everyone on a fiduciary committee needs to be well trained on the legal, financial and operational issues of the plan, this is especially true for non-directors who, in none of these areas, are as demanding as executives. Most closely managed ESOP companies always have an individual or committee acting as an agent. Most of the time, only one director is the CEO, CFO, or other executive of the company. In some cases, the seller of an ESOP is the agent or is a member of the trustee committee. However, this results in a clear conflict of interest. An ESOP representative is responsible for the performance of his or her duties in a manner „in full view“ for the interests of the plan participants. In addition to performance audits, trust fees incurred during the implementation of the process should be verified. Trustees are responsible not only for how the funds are invested, but also for how the funds are spent.
Investment fees have a direct influence on performance and directors must ensure that the fees paid for investment management are fair and reasonable. . . .