Employee Rewards and Benefits News
Executive pensions rise despite share price drops
The value of executive pensions has jumped by an average of 19 per cent despite their companies' share prices plummeting due to the current economic climate, according to a new report.
In a piece for the Wall Street Journal, it was revealed that 200 executives in particular saw their pensions rising by around 50 per cent, with the benefits being down to generous formulas which helped trigger the rises.
One man who did particularly well for himself was Richard Clark, the chief executive of pharmaceutical giant Merck & Co, who saw his pension jump from $11.9 million to $21.7 million (£7.2 million to £13 million), partially due to a piece of his compensation being used to calculate the total.
It marks a major contradiction to the actions of many companies, which have paused employee pensions and stopped contributions to a number of retirement plans, the Wall Street Journal added.
One company currently facing employee anger over pensions is Fujitsu, with workers voting overwhelmingly in favour of industrial action against the technology organisation.
Posted by Michael Ewing
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