Monday, September 24, 2018

GE's $31 billion pension nightmare

GE's $31 billion pension nightmare
"John Flannery, the man hired to fix General Electric, inherited a $31 billion ticking time bomb when he replaced longtime CEO Jeff Immelt last year.
Image result for GE have the largest pension deficitLike other companies, GE (GE) has accumulated a significantly underfunded pension. 
But like most things lately at GE, its pension shortfall is much worse.
Not only does GE have the largest pension deficit among S&P 500 companies, that deficit is $11 billion worse than the next closest company, according to Dow Jones S&P Indices. 
...This is not just a math problem: More than 600,000 current and former GE employees are relying on these crucial retirement benefits.
..."GE's balance sheet is a mess," said Gautam Khanna, an analyst for Cowen & Co. 
"They don't generate a lot of cash, and they have a severely underfunded pension plan."...
Read on.
at

2 comments:

  1. Jess8:54 AM

    Former employees will probably be forced to take pennies on the dollar before it's all over. It's a supposed incentive for people that work for the company. On paper, it's a good part of the salary package. In reality, it's fraud.

    ReplyDelete
  2. Jim Riley9:26 AM

    Jess, CRIMINAL FRAUD.
    But the crooks will get away with and the taxpayers get the bill.

    ReplyDelete