Opinion: Is It Too Risky Not to Be in an ESOP?

One of the most common arguments against ESOPs as public policy is that they are too risky to be good retirement plans. Not only is a substantial portion of plan assets in a single security, but that security is tied to the employees' paychecks.

In an opinion piece, NCEO founder Corey Rosen explores the flip side of that question: what are the risks to the employee of not being in an ESOP? He looks at research results to explore several dimensions of risk by looking at the probabilities facing typical non-ESOP participants compared with typical ESOP participants.