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• The stock was worth $X, now it is only worth $Y. No mention of any stock sales, purchases, transfers, and distributions that would also impact the value of the plan. No other significant discussion of the problems facing the company or industry or any other perspective on the decline in value of the company.
  
• Executives made $Z in compensation, without mention how much is payable in stock and options. In fairness, this article contains a limited discussion in this area.
  
• No or limited details on if the employee have any of their contributions at stake. Most ESOPs are completely funded by the employer, and do not require the employees to put any of their own money at risk.
  
• No accusations or other discussion of fraud or misconduct by the plan fiduciaries.
  
• No mention that an ESOP by definition is "designed to invest primarily in qualifying employer securities".
  
• No or limited information provided about typical ESOP companies. Instead, the article inaccurately implies that this ESOP is reflective of the entire ESOP universe.
  
• No or limited information on the other retirement plans provided by the company. No mention of how studies have found that ESOP companies are generally more diversified than their non-ESOP counterparts:
  
• 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.

Related Links:

• ESOPs In the News
• Sovereign Bancorp ESOP Issues: Reasonable Interest Rates and Prudent Investments
• U.S. Sugar ESOP Issues
• Bear Stearns, High Concentrations of Employer Stock, Statistics: Company Stock in 401(k) Plans
• Too Concentrated in Employer Stock
• Countering Negative ESOP Coverage with the Facts
• Differences between Bear Stearns and Enron