Tom's Journal

Every time a company weasels out of paying pensions to its retired employees, or negotiates to "go bankrupt" just to raid the pensions, someone always points out that "even if the CEO went without salary it would be a drop in the bucket compared to the money they need to make their pension payments". It's some kind of rationalization for not keeping a commitment made to their employees.

Everytime I hear that I think, "Just the CEO? What about all the excecutives? That just doesn't add up!" Sounds like an excuse!

Well, it turns out I was right.

WSJ: Report Proves Exec Payouts Causing America's Pension Crisis


In a new book called Hostile Takeover

The public is led to believe that companies are slashing workers' pensions and backing out of their retirement promises to workers because these companies face a cash squeeze caused by the market. But in a major investigative report, Schultz points out that an "analysis of corporate filings reveals that executive benefits are playing a large and hidden role in the declining health of America's pensions."

or my favorite quote

Boosted by surging pay and rich formulas, executive pension obligations exceed $1 billion at some companies. Besides GM, they include General Electric Co. (a $3.5 billion liability); AT&T Inc. ($1.8 billion); Exxon Mobil Corp. and International Business Machines Corp. (about $1.3 billion each); and Bank of America Corp. and Pfizer Inc. (about $1.1 billion apiece).

It's just another way big business screws the little people that made them big.