Search
 

Labor's Loss

The Bear Stearns debacle is forcing a new group of employees to face retirement with far less savings than they anticipated.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

As Bear Stearns becomes the latest corporate giant to implode, a new group of employees must face retirement with far less savings than they anticipated. While the Bear Stearns debacle is reminiscent of Enron Corp.’s $2 billion pension disaster, it highlights a different potential employee investment drama. How will retirement savings held in Employee Stock Ownership Plans (ESOPs)–such as the one at Bear Stearns–fare if more companies disappear into the mortgage morass.

Bear Stearns workers own 30% of the financial services company; investments that were rendered pretty much worthless even as bidder JPMorgan Chase increased its takeover offer five-fold to $10. But they aren’t the only ESOP participants concerned about their savings. Last year, 11.2 million Americans held $928 billion in employee-stock-ownership plans, stock bonus plans and profit-sharing plans that primarily invest in company stock, according to the National Center For Employee Ownership in Oakland, Calif.. That was up from 2006 when 10.5 million plan participants held $675 billion in similar plans.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Trending Stories

 

Recommended Stories

Understanding the Cost of Hedging

Understanding the Cost of Hedging

Amol Dhargalkar |

Many companies take a backward approach to valuing derivatives hedges. Here’s how treasury teams should look at these costs instead.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.