[Am-info] Stock options and pensions

[Erick Andrews]

On Sun, 17 Nov 2002 07:44:30 -0500, John J. Urbaniak wrote:

>I watched a program on C-Span last night.  It was a seminar presented on
>Sept 30, 2002 at the University of New Mexico.
>
>The speaker was reviewing various practices employed by large companies.
>
>She said that last year, stock options, if accounted for properly, would
>have reduced Microsoft's reported income by one third.
>
>She also said that Microsoft has NO PENSION PLAN for its employees.
>It's very hard for me to imagine how Microsoft can consider itself a
>major company without a pension plan.
>
>Of course, a pension plan would also reduce the company's profits as
>would a stock dividend.
>
>It astonishes me how such a sleazy company could be a member of the Dow
>30.
>
>John

I've learned over the past couple years of several large corporations putting
the "squeeze" on existing employees to change from a 'Defined Benefit Plan'
for pensions to a 401K.  New employees often have no choice.  I recall that
IBM pushed for such changes three years ago, though I don't know where
it currently stands.  Many employees revolted.

What can be worse about a 401K for a pension is when the corporation 
requires a hefty percentage to be invested in them.  Ergo, Enron.

I wonder who started this trend.  Maybe "successful" Microsoft?

-- 
Erick Andrews