Some of the biggest names in revenue growth, profit progress and market cap gains are also moving up in another financial category — defined contribution assets.
The DC plans of these companies — the famous, and sometimes infamous, FAANG stocks — won't be challenging their largest peers any time soon because the Federal Thrift Retirement Plan, Washington, has $578.8 billion in DC assets, according to the latest Pensions & Investments survey of the 1,000 largest retirement plans. Long-established DC plans of AT&T Corp., Dallas, ranked second with $65.5 billion, and Boeing, Chicago, ranked third with $64 billion, seem far away in the asset horizon — for now.
However, some of these youngsters are advancing quickly in the P&I ranking of DC assets among the largest retirement plans.
The reasons are varied but a common theme is booming employment. Facebook Inc., for example, doubled its full-time workforce between 2016 and 2018. So did Netflix Inc. Amazon.com Inc. nearly doubled its combined full- and part-time workforce during this period. Alphabet Inc., parent of Google, recorded a 38% increase in full-time employees. Apple Inc. added 14%.
Beyond raw numbers, however, the FAANGs take different approaches to managing their DC plans, including some with an aggressive approach to auto-enrollment. The plans of Alphabet and Facebook, for example, set initial auto-enrollment deferral rates at 10%, well above the more common rage of 3% to 6% at many DC plans. Participants may opt out.