Executive pensions increase even though stocks fall!
NEW YORK - November 3, 2009 - Pensions for top U.S. executive rose by an average of 19% last year, and more than 200 officers saw their retirement savings surge by as much as 50%, even as their companies’ stock prices fell, The Wall Street Journal reported on Monday.
Pensions rose as a result of generous formulas and some little-scrutinized techniques, such as changes in age or interest rates used in calculations, the paper said, citing an analysis of filings from 340 Standard & Poor's 500 companies.
With the public outraged over lavish pay and big bonuses, The Journal on its website said pensions rose even while stock prices dropped by an average of 37% last year. Yet supplemental executive retirement plans, or SERPs, are mostly overlooked.
The chief executive of Merck & Co. saw his pension benefit rise by nearly $10 million to $21.7 million last year. Certain incentive payments for ConocoPhillips CEO Jim Mulva boosted his pension by $9.5 million to $68.2 million, the paper said.
The top executives at General Electric saw the amounts they were due from pensions rise by 13% to $140.7 million, The Journal said.
Pensions rose as a result of generous formulas and some little-scrutinized techniques, such as changes in age or interest rates used in calculations, the paper said, citing an analysis of filings from 340 Standard & Poor's 500 companies.
With the public outraged over lavish pay and big bonuses, The Journal on its website said pensions rose even while stock prices dropped by an average of 37% last year. Yet supplemental executive retirement plans, or SERPs, are mostly overlooked.
The chief executive of Merck & Co. saw his pension benefit rise by nearly $10 million to $21.7 million last year. Certain incentive payments for ConocoPhillips CEO Jim Mulva boosted his pension by $9.5 million to $68.2 million, the paper said.
The top executives at General Electric saw the amounts they were due from pensions rise by 13% to $140.7 million, The Journal said.
