Who is legally responsible for the valuation of company stock held in the ESOP?
Under ERISA, the legal responsibility for valuing ESOP stock rests with a named fiduciary who is responsible for fulfilling this trustee responsibility. The named fiduciary must carefully select and monitor the performance of the ESOP appraiser. If the independent appraiser’s valuation is challenged, the fiduciary would look to the appraisal firm to defend its conclusion of value.
