The case for a Corporate Sole Trustee – Cardano [Video]

Different approaches to DB governance and implementation can work well, but there’s one model we’ve seen work well consistently: corporate sole trustee (CST).

That’s when a company stands down its traditional board of trustees and then appoints a CST, which is the company’s prerogative under most schemes’ trust deed and rules. The CST then appoints a fiduciary manager who is given a clear mandate set by the CST in consultation with the company.

This model is proving attractive to schemes at all stages of their journey, including schemes material to the company and those with a buyout or a scheme merger on the horizon.

CSTs are professionals whose services may add to governance costs. But that can be money well spent as an investment in member and company outcomes. In our experience, CSTs can often drive down investment and other costs, meaning total scheme expenses fall, sometimes significantly.