New Data on Employee Ownership in 401(k) Plans

A new NCEO analysis of Form 5500 filings shows that in 2006, company stock represented about $300 billion in 401(k) plan assets in about 2,900 companies. Of this, $133 billion was in the 748 401(k) plans that had a majority of their assets in company stock. Almost all of these are public companies. According to the Employee Benefit Research Institute/Investment Company Institute, the percentage of assets invested in company stock has steadily declined in the post-Enron era. While in 2006 it stood at 11% of total 401(k) plan assets, in 1999 it was 19%. Not all plans offer company stock, however. The 748 companies, we estimate, are about 40% of the number of companies who had a majority of the employer stock in 401(k) plans in 2001.