Retirement plans comprised of the private shares of S corporations vastly outperformed the stock market from 2002 to 2012, returning 62 percent more than an S&P index fund, according to an Ernst and Young study.
Participants in private company employee stock option plans averaged an 11.5 percent annual return over the 10-year period, compared to the 7.1 percent return in the S&P 500 Total Returns Index.
Private ESOPs distributed $30 billion in assets to participants over the period. Total assets were more than 300 percent higher in 2012 than in 2002, bolstered not only by strong returns, but a surge in participants as well. In 2012, the plans counted 650,000 participants, up from 240,000 10 years prior.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
