Charles R. Schwab, chief executive officer of the well-known discount brokerage firm, is "very disappointed" in the 78% participation rate in his company's $68 million 401(k) plan.
As a result, he said, Charles Schwab and Co. Inc., San Francisco, will make some changes next year. One possibility: making plan participation mandatory in the first year of employment. Another: adding an employer match.
Mr. Schwab made his comments at the "Benefits Discovery Conference '94" in Las Vegas last week.
Louise Rothman, vice president of compensation and benefits, said under the changes, the company would offer eight investment options and a self-directed brokerage option. The plan now has six options, including company stock.
Record keepers are being reviewed now in order to move to a paperless administration system next year. Although Ms. Rothman declined to name the current record keeper, the 1994 Money Market Directory lists the record keeper as Buck Consultants Inc., New York. One finalist in the search is Coopers & Lybrand, New York, which also is an alliance partner of Schwab's.
High-tech enhancements could include CD-ROMs for better graphics, asset allocation computer games and an educational video.