Want to know how the guy in the corner office invests? About as conservatively as he dresses, it turns out.
The higher-ups started hedging their bets in 2003, according to the Clark Executive Retirement Report, an analysis of retirement savings allocations of 28,000 executives earning more than $250,000 a year. To mitigate any disasters in a particular sector, executives spread their savings pretty evenly among the array of investment choices. Allocations in global, mid-cap, small-cap, balanced/hybrid, money market investments ranged from 6% to 12%.
Execs didn't get starry-eyed about company stock, either. Holdings of company stock stayed at about 10% of total portfolio value compared to 9% in 2002.
The bulk of the bigwigs' retirement savings -- $1.4 billion of the $2.6 billion total the suits invested last year -- sits in large-cap stocks and mutual funds (28%) and in fixed-income investments (24%).
Still, there was some reshuffling last year. Investments in international stocks and mutual funds reached nearly $172 million, a 68% increase from the previous year. Many dabbled more aggressively in small-cap investments, too, which attracted $200 million compared to $120 million the previous year. (Perhaps they were heeding the advice our own wage slave Tom Gardner puts forth in his quest for hidden gem investments.)