Diageo’s pension plan has been in the news recently.
Praised in the press for enlisting pensioners in order to find the current whereabouts of deferred pensioners, they are in the press again for a change they are making to their trustee appointments.
It appears that Diageo have had to replace their Member Nominated Trustees every three years. Just as they were getting useful, I would think. It must take that long just to understand the intricacies of a Defined Benefit plan.
Now, they will no longer have to replace the trustee automatically and can have them on board for a second term and longer. Slightly less democratic maybe, but infinitely more useful for everyone.
My only concern would be the possibility of ‘Chairperson Control’. By that I mean the fact that trustees will inevitably get set in their ways to a degree. The Chair will have a considerable say in how things are managed. Having someone new in the mix that is not afraid to ask ‘daft’ questions can help improve the way a trustee group operates.
Well done Diageo, but watch for complacency.
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