Changing Circumstances: How You Can Change ESOP Distributions

Many companies are looking at changing their distribution policies in light of the economic crisis. So what can you do? The first critical rule is “what does your plan allow?” Some companies have their distribution and diversification rules in their plan documents; others have a plan document that allows a designated group (the board or the ESOP admini-stration committee, typically) to develop a written distribution policy that allows more flexibility