Not one 401(k) plan vendor was rated ``excellent'' by large, medium, small or very small plan sponsors in a recent customer satisfaction survey by DALBAR Inc. Some received the highest ranking in individual service categories, but few service providers were graded even ``very good'' by their clients in overall service.
CIGNA was ranked highest by plan sponsors with more than 5,000 employees. American Express, Hewitt, Fidelity Institutional Retirement Services and T. Rowe Price followed. Midsized plan sponsors - with 1,000 to 4,999 employees - rated T. Rowe Price first, followed by Vanguard, Hewitt, Principal Financial and Wells Fargo Nikko.
For plans with 100 to 999 employees, Fidelity Institutional Retirement Services was ranked No. 1, followed by Vanguard, T. Rowe Price, Principal Financial and Diversified. Sponsors with fewer than 100 employees put Principal Financial at the top of the rankings. Prudential, First Union National Bank, Northwestern Mutual and Standard Insurance Co. followed.
DALBAR surveyed 3,500 401(k) plan sponsors in December 1994.
Most institutional investors oppose placing limits on CEO compensation, according to a survey by Russell Reynolds Associates.
The survey found 61% of institutions oppose the limits and, among those, 56% strongly oppose it. The survey also found that while 97% of institutional investors surveyed favor tying CEO compensation to performance, only 1% believe termination should result from a low stock price.
Russell Reynolds surveyed 33 institutional shareholders and 206 fund managers representing a full spectrum of equity types.
Centerior Energy Corp., Independence, Ohio, is considering hiring external money managers to manage its $200 million in corporate cash, now run in-house in a conservative strategy, said Gregory A. Tropf, senior investment analyst.
The treasurer recently placed corporate cash investment operations with Mr. Tropf, adding to his existing duty of overseeing the company's $385 million pension fund.
Mr. Tropf is drafting a new corporate cash investment policy, which will be presented to the investment committee of the board of directors in December. He wants approval to increase risk within prudent limits and to use outside managers. If the committee approves the policy, the company would begin a search for managers, most likely early in the new year.