The features of a private retirement plan for larger firms include that the
employee’s contribution to the plan is matched by the employer, and that employees are typically restricted to allocate the employer’s matching contribution in company stock. It is possible nevertheless for the employee’s assets in the retirement plan to become inadequately diversified. The concentrated company stock holdings will
have participants lose retirement wealth to company stock price drop-off. This paper provides a monetizing measure of implied diversification cost for a multiple-contribution of company stock in the private retirement plan.
