Companies are required to report the size of their top executives’ pensions, but sizing up the IOUs can require sleuthing through financial filings.
For one thing, the amounts shown in the pension table are rarely the full amount the executives are entitled to when they leave.
Disclosing the Minimum: Figures in Wells Fargo & Co.’s pension table show that President John Stumpf’s pension was $9.6 million in 2008, down 3% from the prior year. The “present value” can fall if the company changes the interest rate it uses to calculate the pension, or changes the measurement date.
Posts Tagged ‘Executive pension plans’
Published in The Wall Street Journal November 3, 2009by Ellen E. Schultz and Tom McGinty
Pensions for top executives rose an average of 19% in 2008, with more than 200 executives seeing pensions increase more than 50%, according to a Wall Street Journal analysis.
The executive-pension growth stemmed partly from generous pension formulas, which are based on executive pay, according to the filings. Also adding to the pension jumps are arcane techniques that have received little scrutiny, including increases triggered when an executive reaches a certain age or when companies change interest rates used to calculate the pensions.