Your trustee provides reliable baseline service, but you’re missing strategic value and innovation. Taking action now will prevent this relationship from becoming a limiting factor in your ESOP’s growth.
Recommended Next Steps:
- Conduct a gap analysis: Use our comprehensive checklist to systematically evaluate where your trustee falls short. Document specific examples and desired outcomes for each gap.
- Initiate a frank conversation: Schedule a meeting within 2 weeks to discuss your assessment results with your trustee. Share specific expectations and ask for a 90-day improvement plan.
- Build your knowledge: Enroll in ESOP 4compliance and fiduciary best practices courses to better understand what exceptional trustee service looks like. Knowledge is power in these negotiations.
- Establish accountability: Create quarterly scorecards with measurable KPIs for trustee performance. Include metrics like response time, value enhancement initiatives proposed, and strategic insights provided.
- Explore alternatives: Request proposals from 2-3 alternative trustee providers to understand market standards and pricing. This gives you leverage and options if improvement doesn’t materialize.
- Review your contract: Carefully examine your trustee agreement for service level commitments, termination clauses, and transition provisions. Consult with ESOP legal counsel if needed.
- Set clear expectations: Develop a written service expectations document covering communication frequency, strategic input, innovation, and responsiveness. Review quarterly with your trustee.