Verizon Communications Inc. Leadership announced Monday it would stop contributing to pension plans for managers, a move that would save about $3 billion over the next 10 years.
Verizon unveiled its retirement benefits plans for current employees ahead of the company's merger with MCI next year
Verizon said it would increase matching dollars for its 401(k) plan for those employees, as well as for MCI managers who join Verizon after Verizon's purchase of MCI Inc. (qg says… Not a bad idea if their stock would ever move, just watch what happens, the company will purchase and sell stock to control the price).
The changes will not affect current retirees. Management employees hired after Jan. 1, 2006, will not earn pension benefits.
Shares of Verizon, down more than 20 percent in the year, fell 16 cents to close at $31.71 Monday on the New York Stock Exchange. The pension plan announcement was made after the market's close.
Other companies, such as Hewlett-Packard Co. Motorola Inc, and International Business Machines Corp all have scaled back on their respective pension plans over the past two years.
President Bush says… American businesses best to live up to their pension promises, saying too many companies are not putting away enough money to protect the retirement benefits of their workers.
"My message to corporate America is, you need to fulfill your promises," Bush said. "When you say to a worker, 'This is what they're going get when they retire,' you better put enough money in the account to make sure the worker gets that which you said."
"So Congress needs to straighten up these rules," Bush said. Members of his economic team said pension-reform legislation moving through Congress is not tough enough. "And I'm not going to sign a bill that weakens pension funding for the American workers," Bush said.
qg says… sounds good Mr. President but how does that help the Verizon Employees now/today? Perhaps Congress will get around to it some time after the holidays when the merger will officially be done.
High School Business classes should require that each student take a class in saving for retirement and money management.
Now tell me again how mergers and acquisitions are good? Oh yes, “some employees” make more money, while the majority of workers lose out.
Earlier this year, SBC said it would restructure its pension plan in an effort to lower the cost of its pension liability. And it's likely BellSouth and Qwest Communications will take similar steps to keep their cost structures in line.
MCI stock will now be part of Verizon just like AT&T and SBC. Will Verizon take on the MCI/WorldCom logo? After all were they not a global force like AT&T? Whoopsy, I almosy forgot about Bernie Ebbers and the boys.
Communication Workers of America (CWA) better wake up and not wait until next contract talks. Rank & File Members you better control your own destiny, do not leave it up to your elected officials.
UPDATED 03/20/06
Verizon CEO Ivan "The Terrible" Seidenberg Ransacks
The CEO pulled in $19.4 million in salary, bonuses and stock awards last year, according to a federal filing Monday. His combined pay represents a 43% raise over the $13.5 million Seidenberg pocketed in 2004.
In 2005, shares of Verizon ended 25% below where they started the year. But Seidenberg scored particularly well in restricted stock awards. He got $11.3 million worth of shares in 2005, nearly doubling his $6.3 million take in 2004.
qualityg says ... Board of Directors ---> you should be ashamed of yourselves.
Updated 4/13/06
Here are some links to stories that will question what your CEO is really worth to you and your company. Do you know who is on your Board of Directors?
Who Made the Biggest Bucks?
2 comments:
Amen!
Telco is out of control.
Gene from MAryland
VERIZON's CEO clames everything he and the board does if for the stock holders. I am a stock holder and I have lost my shirt from where the stock was when it was GTE! Raises for most people I know who work at Verizon averaged a 1% to a max of 4% increase this year. Reason given profit was down and costs were up. If that is true then why were you "given" so much mine Ivan?
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