How Do Executives Investfor Retirement? Clark Consulting Launches Executive Retirement Report

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When investing for retirement, executives tend to favor fixed-rate options and large-cap funds over other asset classes, according to the premiere edition of the Clark Consulting Executive Retirement Report. Among eleven asset classes, the fixed-rate category—that is, funds that provide a fixed rate of return—was the most popular, accounting for 26.3% of all assets measured. Large-cap funds ranked second in popularity at nearly one-quarter (24.9%) of total assets measured.

When investing for retirement, executives tend to favor fixed-rate options and large-cap funds over other asset classes, according to the premiere edition of the Clark Consulting Executive Retirement Report. Among eleven asset classes, the fixed-rate category—that is, funds that provide a fixed rate of return—was the most popular, accounting for 26.3% of all assets measured. Large-cap funds ranked second in popularity at nearly one-quarter (24.9%) of total assets measured.

“Executives are on the front line of American business, and the investment decisions they make may provide a window into future economic and market performance,” said Tom Wamberg, CEO of Clark Consulting. “By tracking the investment choices of executives on a quarterly basis, the Clark Consulting Executive Retirement Report offers a snapshot of the investment decisions made by those in the corner office.”

The Clark Consulting Executive Retirement Report is a new quarterly report issued by Clark Consulting (NYSE: CLK), an executive compensation and benefits consulting firm. The report examines the investment selections of more than 17,000 executives with annual compensation typically in excess of $100,000, across eleven different asset classes including: balanced, fixed income, fixed rate, foreign, large-cap, medium-cap, small-cap, money market, company stock, specialty and world. The premiere Clark Consulting Executive Retirement Report examined executives’ investments as of December 31, 2004.

According to the report, small-cap funds ranked third in popularity among executives with 10.9% of measured assets, less than half of the amount of assets invested in large-cap funds. However, small-cap funds were still twice as popular among executives as mid-caps with 5.1% of assets.

“The Clark Consulting Executive Retirement Report indicates that executives tended to prefer investments perceived as ‘safer’ with fixed-rate, fixed income and large caps representing a total of 61.1% of assets,” Wamberg commented. “But, it’s interesting to note that the amount executives invested in small-caps was more than double the amount invested in the generally less-risky mid-cap funds.”

According to the report executives invested a total of 18.2% of assets in what are typically considered “higher risk” investment funds (small-cap, foreign, world and specialty). The least popular asset classes were world funds at 1.2% of the total measured assets, and specialty funds at 1.5%.

As a total of invested assets, executives held 5.3% in their own company stock and 9.9% in fixed income options. Money market funds represented 6% of total assets, with foreign funds representing 4.6% and balanced funds 4.2%.

The Clark Consulting Executive Retirement Report is released on a quarterly basis. The report tracks and examines the investment habits of more than 17,000 executives, with annual compensation typically in excess of $100,000, who have accounts in nonqualified retirement plans through Clark Consulting. The selections of asset funds and allocations within those plans determine the investment return generated for the executive's retirement account. Each quarter, the report will examine investment data from an historical perspective—one, two and three year comparisons—and also offer demographic comparisons of investment choices between groups such as Gen-Xers and Baby Boomers. Full results of the premiere report are available at http://www.clarkconsulting.com/execreport.

About Clark Consulting

Clark Consulting (NYSE:CLK) is the leading public executive compensation and benefits consulting firm. Founded in 1967 and now with over 70 offices nationwide, Clark Consulting helps more than 3,900 corporate, healthcare and banking clients to keep their best people. Clark Consulting’s compensation consultants specialize in designing innovative programs that attract, retain, motivate and reward executives, employees and Directors. The company’s benefits consultants provide leading edge advice on the design, financing and plan administration of benefits programs. For additional information, please visit http://www.clarkconsulting.com.

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

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Shawn-Laree de St. Aubin
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