Workers Rely Heavily on Equity Compensation to Build Wealth, but Hold Too Much Company Stock, Finds

Charles Schwab press release --------- A new survey from Schwab Stock Plan Services reveals that equity compensation accounts for a significant portion of participants’ net worth, with many employees’ portfolios overweighted in company stock even though they state they regularly rebalance their investment accounts. According to the nationwide survey of 1,000 equity compensation plan participants who receive stock options or restricted stock awards and/or participate in employee stock purchase plans (ESPPs), equity compensation accounts on average for nearly 30 percent of employees’ net worth. Millennial employees have a greater share of their net worth in equity compensation than do their Gen X and Boomer counterparts (42%, compared to 24% and 19%, respectively). Almost three-quarters (73%) of employees surveyed also own company stock outside of their equity compensation plan, most (44%) in their workplace retirement plans. To learn more click on the picture below to read the release.