The New Normal

We have been gazing into our crystal ball at Ross Trustees and two of the trends we anticipate seeing in 2021 are:

Trustee meetings alternating between in person and online (post vaccine) 

With three rounds of quarterly online trustee meetings under our belts, it is difficult to imagine returning to the traditional governance models of three/four half/full-day meetings per year in person. When it is safe again to do so, we can see every other trustee meeting taking place in person, with in-person meetings focussed on training, strategy and long term planning and covering more strategic topics such as covenant, investment and funding. These should see better outcomes if discussed collaboratively in the same room, where ideas can flow and questions can be asked – without being restricted by the cries of “you’re on mute!”

This would leave shorter, online trustee meetings in between with a focus on important operational, business as usual, matters such as administration, audit, communications, governance and legal. This way, these items should have sufficient air time without being squeezed by other, seemingly more pressing, topics that often take precedent.

Increased appointments of professional (sole) trustees

As sponsors focus on driving their businesses forward in the “new world” and more lay trustees face increasing competing demands on their time, we envisage further support being sought from professional trustees as a co-trustee, chair or sole corporate trustee.

The appointment of a professional independent trustee frees up existing resource and helps meet any skill gaps on existing Boards. It also provides experience and independence from the employer at a time when conflicts are widespread. Such appointments should lead to quicker, more effective agile decision-making that can take advantage of favourable market opportunities.

This article was first published in Pensions Age, January 2021

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