It's been a few months since the last major wave of negative ESOP coverage, so I guess we shouldn't be surprised with the coverage in Despite Risks, Workers Guzzle Company Stock - Participants in 401(k) Plans See Safety in Employer Shares; No Other Options for a Match, which cites the usual Lehman Brothers and Fannie Mae as examples. Nonetheless, it is essential that the ESOP community continue to Counter Negative ESOP Coverage with the Facts.

The Employee Ownership Blog does this in their latest post, Wall Street Journal Story, Page 1 of Style & Homes Section, Blasts Company Stock. The post starts by agreeing with the premise that employees need to understand the importance of maintaining a diversified portfolio and then moves on to three key points about the article:

1.) This article leaves the impressions that all company stock is bad in every situation. This is simply not the case. We know many companies, very good companies, that use company stock. Yes, the market is in shambles but why chastise people who want to move their money into what they feel is a safer investment at this time.

2.) This article implies that all average pay employees are stupid and don't know anything about their own money and need experts to tell them what to do.

3.) Finally, a careful reading shows that experts in this article are trying to market automatic out of company stock programs. Of course they would be upset with individuals wanting to shift money into company stock as such a move can hit the financial advisors 'bottom line.'

There's a lot of uncertainly in the market these days and there are no right answers. Articles like this are just another elitist shot at individuals who are trying their best to make the most out of a collapsed publicly traded stock market.

In closing, remember the following ESOP diversification facts:

• Studies have shown that a typical ESOP participant has about three times the total retirement assets of a non-ESOP participant.
  
  
• Studies have shown that ESOP companies are more likely to have another diversified retirement plan than non-ESOP companies.
  
  
• A typical ESOP participant has diversified assets about equal to those of the non-ESOP participant.