Tuesday, December 15, 2009

Another Reason To Dislike Wal-Mart

According to the Wall Street Journal, one-quarter of top executives at major U.S. companies actually had gains in their supplemental executive retirement-savings plans in 2008. By comparison, the 50 million rank-and-file employees at America's corporations lost a total of at least $1 trillion in the 401(k) plans.

Supplemental executive retirement-savings plans often offer a guarantee protecting top executives from loses. For instance, thanks to a guaranteed 6.6% return, Wal-Mart CEO H. Lee Scott had gains of $23 million in his supplemental plan, bringing its total value to $46.7 million. Meanwhile, the 1.2 million employees in the retailer's 401(k) retirement plan lost 18% as the market plunged.

Comcast, Honeywell, and McKesson are some of the other firms whose supplemental executive retirement plans actually made money in 2008.

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