Good News for CEOs!
Hey, it turns out that eliminating employee pensions is pretty damn lucrative. Not for those poor hapless lowly employees who had the rug pulled out from under them, of course, but who cares about them? For CEOs and upper management, it’s a gold mine.
First, of course, they keep all that money that was being paid out to the hired help. But that’s not all. By cutting out the pensions, they’re boosting company profits and — Voila! — fattening their own bonus packages.
Whooeee!! Being an unethical sleazebag sure does have its benefits. Or, to paraphrase Mel Brooks, it’s good to be a slippery bastard.
IBM is a recent example. They’ve eliminated employee pensions (but not the CEO’s pension of course). When their CEO retires at age 65, he’ll receive an annual pension of $4 million! That comes out to more than $10,000 a day, including weekends and holidays. Yeah! You go Sleaze!
Alcoa has also jumped on the bandwagon; they’ve announced that new hires will not be receiving pensions.
Oh, and think of the gargantuan tax cuts these multi-millionaires will be receiving, by stiffing the help. Yup, the economy’s doing great (for those who count).
A spokesperson for the Corporate Governance Alliance said “It is unseemly for executives to reap higher bonuses on that basis.”