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Jack Welch started the trend of the fanatical obsession with stock price, along with things like the 401k.
IMO the idea of a company pension fell out of favor with employees after seeing the 1970's:
1) Gut the value of pensions with sustained high inflation.
2) Layoffs and job changes killing the idea of working 40 years at the same company.
3) Failed companies so younger workers remember seeing their older friends\family getting 1/2 their promised pension.
#3 of course is looming again after the 2012 passage of pension liability reforms that reduces the amounts companies have to fund their pensions by around 20%. Looking right at GE as an example of a pension that down the road will probably not be fully paying and unless interest rates recover in a meaningful way I think that's highly likely 10 years from now (perhaps less).
IMO the idea of a company pension fell out of favor with employees after seeing the 1970's:
1) Gut the value of pensions with sustained high inflation.
2) Layoffs and job changes killing the idea of working 40 years at the same company.
3) Failed companies so younger workers remember seeing their older friends\family getting 1/2 their promised pension.
#3 of course is looming again after the 2012 passage of pension liability reforms that reduces the amounts companies have to fund their pensions by around 20%. Looking right at GE as an example of a pension that down the road will probably not be fully paying and unless interest rates recover in a meaningful way I think that's highly likely 10 years from now (perhaps less).
Also take into mind that employee ideals were shifting as well. They no longer stayed at a company their full working lives. They wouldn't have been vested so what did a pension even matter to them.
They could take their 401K with them and that appealed to them more.
They were more interested in higher pay than lower pay and benefits such as stock purchase, pension, etc.
My son is 29 and he's had more jobs then I have my entire working life and I'm retired now. That is the trend with the younger generations..average time at a job now is 3 years. With a 5-10 year vesting period hardly anyone would get vested so the loss of a pension is really moot.
Funny thing. I've been searching all over to see this list signed by 181 companies.
Wouldn't we want to know who cares more about the community ?
Wouldn't they want us to know as well ?
Nice story though. 181 companies care more about the people than the shareholders only they won't come forward and give their company name.
401ks aren't the only retirement pension/account invested in equities, etc. Look at any one of them. They're deeply dependent on corporate profits/gains to fund their payouts.
California's CalPERS (California Public Employee Retirement System), for example...
I did not mean that he also is credited with the 401k, I mean that he is the person responsible for the corporate culture shift to stock prices, along with other items that were emerging like the 401k. But Welch really created the corporate culture of chasing stock price.
Hmmm...It appears the Business Roundtable might be considering 2 things:
1) Mr.Trump and the GOP will suffer staggering losses in the 2020 election
2) They have a deep fear of what the Warren effect will be on business, and are now trying to get ahead of the changes to come.
Random thoughts:
A great big shout out to Rep. Katie Porter of California's 45th district...keep up the good work!
Corporations cared about their employees and the local community in the mid 20th century. The Reagan revolution turned them into cut throat capitalists.
All good points. Trump was a populist in Name Only, signing whatever the corporate swamp wanted him to. Now people are really sick of the right wing corporate bull****
Funny..I can't find this list of CEO's that signed this new pledge.
Is in the article.
Along with Dimon, the statement received signatures from chiefs including Amazon's Jeff Bezos, Apple's Tim Cook, Bank of America's Brian Moynihan, Dennis A. Muilenburg of Boeing and GM's Mary Barra.
Along with Dimon, the statement received signatures from chiefs including Amazon's Jeff Bezos, Apple's Tim Cook, Bank of America's Brian Moynihan, Dennis A. Muilenburg of Boeing and GM's Mary Barra.
181 companies signed that list. I'd like to see that list. It's not even on the org's website.
Or How to lose your job as CEO using this one weird trick.
Only a moron looks to corporations for social and economic guidance. What a crock of dung.
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