Corey Rosen
ESOP Pass-Through Voting and the New DOL Guidance on Proxy Voting
The issue of whether trustees can and should override participant directions on offers to buy shares in a proposed acquisition of an ESOP company has been one of the most ambiguous areas of ESOP law and practice. New guidance from the U.S. Department of Labor (DOL) (29 CFR 2550.404a-1) on proxy voting of shares in retirement plans, including on environmental, social, and governance metrics, includes a brief section addressing this issue, essentially putting into regulatory form what had been just guidance.