Company Stock in 401(k) Plans

Reuters reporter Mark Miller looked at trends in company stock holdings in public company 401(k) plans and published a list of the companies with the highest concentration of plan assets in company stock. All 10 companies on the list, based on research by Brightscope, have 401(k) plans with over 60% of assets in company stock. Colgate-Palmolive is at the top, with over 75% of plan assets in company stock. The article notes that these high concentrations often result from company matches and from rapid increases in the value of company shares. The Brightscope research also indicates that the percentage of plan assets in company stock in 401(k) plans decreased by one-quarter from 2007 to 2009.