Click for Academy of Management home page

Academy of Management

A small warning about employee stock ownership

A small warning about employee stock ownership
Kansas City Star
By Diane Stafford
Published: August 28, 2015
>> A small warning about employee stock ownership

 Did you watch the stock market — and the value of your savings — plummet in the recent market dive? Yep, you know the emotional toll exacted by following your investments, even if the drop is short term.

Wall Street’s wild ride slapped us with a reminder about the value of diversification. It’s never smart to concentrate retirement savings in one place. And that means not getting too heavily invested in our employer’s stock, no matter how high-flying its shares or how good the company match.

The August annual meeting of the Academy of Management included a paper presentation with another kind of investment warning: When employees voluntarily purchase their company’s shares, they can develop “higher expectations that organizations may find difficult to fill.” That’s a new wrinkle. 

Academy of Management
Member Services
Academy of Management
Online Opportunities
Academy of Management