And in all of these cases, one common theme was a lack of presence on the Board by people who really believed employee ownership was important to the company. Any time the discussion of employee representation on the Board comes up, it leads to an argument about constituency representation. I'd like to offer my thoughts on this argument. I contend that everyone on the Board is a constituent. The entire past 50 years of research by economists and financial professors shows that management is the biggest constituency - they make the company bigger so they can increase their salaries.
Outside shareholders are a constituency.
I sat on the Board with investment bankers who owned 10 percent of the firm - they are a constituent. Well, there isn't. The point is that, despite the fact that you have self interest, you're supposed to have a duty to the corporation. In conclusion, I would emphasize that a passionate Board is what is necessary to perpetuate employee ownership - investment bankers and legal advisors who are ordered to perpetuate employee ownership. Good candidates for the Board can come from other employee owned companies.