Corporate executives are opting for the same blind-trust arrangements that have been favored for years by politicians. The blind-trust arrangements guard against conflicts of interest by having the funds administered by a third party who cuts off most personal communications with the client. Blind-trusts are the opposite of traditional corporate inside information that can lead to executives buying and selling stock in their own companies. The blind-trust may indemnify corporate insiders by establishing a legal defense to insider trading.
See Eric Schellhorn, The Christian Science Monitor, January 13, 2002