Wednesday, December 23, 2009

Comcast Execs Guaranteed 12% Interest; Workers Lost Money

Read it and weep. From "For executives, sure-thing retirement plans," by Ellen E. Schultz and Tom McGinty, Wall Street Journal 12/15, we find out that some corporate executives are guaranteed a certain percentage of growth per year in their retirement plans, regardless of market performance. Local angle:

Comcast Corp, the cable operator, provides top executives with 12% interest on supplemental savings. This provided Executive Vice President Stephen Burke with gains of $7.4 million in his deferred-compensation account, helping to boost his total retirement savings to $71 million, show corporate findings.

The retirement funds of more than 70,000 workers in the Comcast 401(k) plan lost $649 million, a drop of 28%, filings show. Their average account size by year end was $24,000. The company, which confirmed the calculations, declined to comment.

Something to think about next time your cable goes out. The repairmen and lower level employees are at the mercy of the market. The corner office guys not so much. Fair? Hardly.

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