How much previously confidential information must be given employees, such as management salaries and bonuses; capital expenditures, etc.?
ESOP participants are entitled to the same information under ERISA as participants in any other retirement plan. That is, they are entitled to a summary plan description, to an annual statement regarding the status of their account, a summary annual report, and to other plan information, such as plan and trust documents, if they request it. Unless the ESOP vote pass through (explained below) is triggered, ESOP participants are entitled to no other information. They are not entitled to corporate financial statements, information regarding compensation, the valuation report, etc. The ESOP vote pass through is triggered if one of seven defined events occur. They are merger, liquidation, recapitalization, sale of substantially all of the assets of the corporation, dissolution, reclassification, and consolidation. If one of these events occurs, then participants must be given the right to confidentially vote the shares allocated to their ESOP account, and given adequate disclosure, under st
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