Friday, January 15, 2010
Are Fortune 500 companies cheating workers out of defined benefit pensions while spoiling exec's?
While employers are cutting contributions to defined benefit pension funds (or terminating or freezing them altogether), the same companies are increasing executive stock offerings and stock options, according to a sidebar on p. 6 of the Jan-Feb. 2010 AARP Bulletin. The piece is called “What an outrage: Bosses’ Bonuses Trump Workers’ Pensions”, link here. In 2008, S&P 500 companies provided their top executives $44.5 billion in perks while contributing just $39.5 billion to employee pension plans.
The president was supposed to jawbone this practice away. Has the financial crisis changed any of this?