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ESOP Transactions and the Duty to Monitor Revisited

Key Takeaways: Board’s Duty to Monitor the Trustee: A company’s board of directors has a fiduciary duty to monitor the ESOP trustee’s actions in an ESOP transaction, ensuring that the trustee is acting in the exclusive...more

Department of Labor Proposes Rule on Valuing Stock for ESOP Stock Purchase and Sale Transactions

On January 16, 2025, the Employee Benefits Security Administration (EBSA) at the Department of Labor (DOL) released drafts of long-awaited proposed regulations seeking to clarify the definition of “adequate consideration” as...more

Illinois Court Strikes Down ESOP’s Arbitration Provision

Over the past few years, qualified retirement plans, including employee stock ownership plans (ESOPs) have been adding provisions requiring participant breach of fiduciary duty claims to be resolved through mandatory...more

New DOL Settlement Takes Aim at Indemnification for ESOP Fiduciaries

On January 12, 2021, the United States Department of Labor (“DOL”) entered into a consent order with another fiduciary of an employee stock ownership plan (“ESOP”).  The consent order in Scalia v. Professional Fiduciary...more

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