An American Airlines seen at Ronald Reagan Washington National Airport during the coronavirus crisis.If a company is not meeting it's pension obligations, it's probably not going to live up to shareholder expectations either.
Morgan Stanley equity strategists created a list of 50 companies with the largest pension-fund shortfalls. "Our analysis shows that companies with pensions underfunded by >5% of market cap significantly underperform the broader equity universe and sector peers," they concluded. The strategists estimate pension benefit obligations will rise 6% year-over-year when companies have to square up at year end.
The coronavirus shutdowns had sent stock values into a nosedive, wreaking havoc on pension plans, but a swift market recovery has eased some of the pain. Pension funding has also suffered from a decline in interest rates during the pandemic.
Pro So throw people who make your companies run under the bus?
Pro Une saison qui s’annonce très difficile quand tu stoppes une grande partie de l’économie! À suivre! SP500 WSJ business $DJA $QQQ $SPY $XLF COVID19 🌈
Pro Or the collapse of the entire economy is coming....
Pro That way these greedy corporations are prohibited from giving the workers pensions money to shareholders or exec pay rises. This then makes the payments tax deductible and the workers can clearly see growth and there is no drag on the company. Really Simple
Pro Here is another PRIME example of the stupidity of American capitalism, WHY, WHY WOULD ANYONE TRUST A CORPORATION TO RUN AND FUND A SUPERANNUATION SCHEME. There is ZERO protection for the workers, the fairest is that the worker and the company pay into a 3rd party trust each pay.
Pro Pensions going down in the next 10 years...