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Target, Microsoft Lead Move Away From 401(k) Stock Investments – Bloomberg BNA

March 16, 2018 In The News

Large public companies are beginning to rethink offering their own stock as an investment option in 401(k) plans available to their employees.  Companies are instituting various measures to either reduce, or in some cases outright eliminate, employer stock holdings in retirement accounts.  Zamansky LLC Partner Samuel Bonderoff told Bloomberg Law “I don’t know exactly what’s driving this trend, but it’s certainly not because fiduciaries are afraid of legal liability, because lawsuits against ESOP fiduciaries have become incredibly difficult to maintain … you can basically fulfill your fiduciary duty regarding an employer stock plan by doing absolutely nothing no matter what happens.”

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