Retirement plans comprised of the private shares of S corporations vastly outperformed the stock market from 2002 to 2012, returning 62 percent more than an S&P index fund, according to an Ernst and Young study.
Participants in private company employee stock option plans averaged an 11.5 percent annual return over the 10-year period, compared to the 7.1 percent return in the S&P 500 Total Returns Index.
Private ESOPs distributed $30 billion in assets to participants over the period. Total assets were more than 300 percent higher in 2012 than in 2002, bolstered not only by strong returns, but a surge in participants as well. In 2012, the plans counted 650,000 participants, up from 240,000 10 years prior.
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