You’re on mute! Our thoughts on the next normal for scheme governance

With three rounds of quarterly online trustee meetings behind us, it is unlikely we shall return to traditional governance models of every meeting being in person. Here’s how we envisage the new norm at Ross Trustees:

Trustee meetings alternating between in- person and online

Many effective meetings have taken place online. Meetings start (and finish) earlier without travel time. Attendees challenged with freeing up a whole day for meetings can often make a call. Advisers and company attendees dial in and out as required. We’ve seen savings in time and cost, as well as efficiencies with quicker decisions and shorter meetings.

The main challenge with online meetings is when technology is not our friend. Broadband width, and hence attendees, can come and go unexpectedly. Video cameras may be switched off to save bandwidth. Sometimes attendees disappear entirely.

As Chairs, it is harder to gauge understanding on screen than in the room, even more so with newer trustees. This is 10x worse when sharing meeting papers on screen. Faces move smaller, to the side and not on the same screen.

Agendas – what to cover and when

What decisions need to be made at meetings should drive the agenda and format.

In-person trustee meetings hold their value but should focus on training, strategy and long-term planning. Strategic objectives such as covenant, investment and funding would be better debated in an in-person environment. In our experience, better outcomes are achieved where discussions take place collaboratively in the same room. Understanding of training and complex topics can be checked. Ideas can flow and questions can be asked, without being restricted by cries of “you’re on mute!”

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

 Additional support needed for online meetings

Trustees need training on video conferencing platforms and on-the-day support. Many of us have been making do; this is not sustainable. Those presenting should be mindful that some trustees are not as used to finding their way around online portals as they are.

Although late submission of papers is a fact of life, reducing the frequency would help the smooth-running of business. It’s hard enough to juggle online papers and online meetings, without searching out late emails with additional information.

Trustee meeting packs need to be shorter. Possibly divided into two: Pack A for discussion/decisions; Pack B for information/noting.

Video conferencing etiquette

An etiquette reminder at the start of online meetings helps, especially if many attendees. Starting with using mute when not speaking.

Raising hands, visually or using the “raise hand” function, ensures questions are spotted and raised without cutting across others. Chairs need to look out for those.

Consider utilising a “5 second rule”, where Chairs ask for any objections to the summarised decision – otherwise silence is taken as consent by the Trustees!  This avoids the need for unmuting/muting at regular intervals.

Capturing when attendees come and go is key, to ensure meetings remain quorate.  Unexpected attendees are problematic and potentially compromise security. Use the lobby function where expected attendees are only admitted at the right time. Advisers’ support is appreciated here, reducing the number attending or turning off camera for the most part so Chairs can see the faces of the whole Trustee Board easily.

Can everybody see my screen?

In this new world with a new way of working, everything is up for grabs. What works well for one scheme will work differently for another. A combination of online and in-person would be the best of both worlds.

This article was first published in Pensions Expert, December 2020

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