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Thread: Who's Pensions Are Ailing GM

  1. #1
    God/dess Deogol's Avatar
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    Default Who's Pensions Are Ailing GM

    Very interesting....



    To help explain its deep slump, Corp. often cites "legacy costs," including pensions for its giant U.S. work force. In its latest annual report, GM wrote: "Our extensive pension and [post-employment] obligations to retirees are a competitive disadvantage for us." Early this year, GM announced it was ending pensions for 42,000 workers.

    But there's a twist to the auto maker's pension situation: The pension plans for its rank-and-file U.S. workers are overstuffed with cash, containing about $9 billion more than is needed to meet their obligations for years to come.

    Another of GM's pension programs, however, saddles the company with a liability of $1.4 billion. These pensions are for its executives.

    This is the pension squeeze companies aren't talking about: Even as many reduce, freeze or eliminate pensions for workers -- complaining of the costs -- their executives are building up ever-bigger pensions, causing the companies' financial obligations for them to balloon.

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    Featured Member Vamp's Avatar
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    Default Re: Who's Pensions Are Ailing GM

    This is the same story being played out companies across America. Executives kept their pensions during the United Airlines restructure while employees gave up their's. Delta's excutives moved their pensions into secure trusts, which kept them from the bankruptcy courts scissors, while cutting employees pay and pension.

    It is this level of greed that is robbing America of a good econmic future.

    More and More companies are also under investigation for manipulating stock options

    http://news.moneycentral.msn.com/pro...629&ID=5768014

    More U.S. companies have become entangled in the controversy over suspicious timing of stock option grants to top executives. Several disclosed this week that they are under scrutiny by federal authorities.
    In expanding investigations, more than 50 public companies are under scrutiny by the Securities and Exchange Commission or the Justice Department, or both, for possible manipulation of options grants to boost their value to the recipients.
    Last edited by Vamp; 06-29-2006 at 07:31 PM.

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