[Am-info] Stock options and pensions

[John J. Urbaniak]

Sujal Shah wrote:

> It's pretty common practice these days in the tech industry... i would
> venture to say that most of the major "new technology" companies don't
> have a pension plan.  especially if the company did most of its growing
> after the 401K legislation was passed by Congress.

Microsoft is hardly a "new technology" company.  I think they were founded
in 1975.

The lack of a pension plan is just one more indication of Bill Gates'
disdain for his own employees.

John


>
>
> What John has described is why this legislation was passed.  And, let's
> be fair.   There's not just greed on the employers' parts.  Employees
> also saw potentially higher returns, since they could invest in higher
> risk funds (pension fund managers tend to be highly conservative in
> their investment choices since there is usually a guaranteed rate of
> return).  I know many people that had a choice and chose over time to
> move more and more money over to their 401K during the bubble days.
> What's even more interesting is that the mid to smaller techs usually
> don't match much of the 401K contribution.
>
> The inquity is that for the employers, it's a no-lose /no-cost
> situation.  The employees are taking all the risk.  Call me a cynic,
> but this is also typical of legislation that major companies lobby for.
>
> Sujal
>