The 5 Most Interesting Disclosures from Corporate America in May

Thanks, what a great comment! Post often! Thumbs up!

The end of the defined benefit pension is the biggest coup in the history of America for big business and the rich. Pensions had a derivitive effect on business values.

During down markets pension assets declined, meaning that companies had to put in more. The prospect of these (potential) future liabilities made M&A buyers think long and hard 2x about the value befor buying a company.

During an up market the pension needed less or no funding and might even be overfunded. Meaning M&A buyers would have to reimburse sellers for the extra value driving the price even higher. The effect of these things was to limit M&A by making it much harded to accurately determine value.

Enter the 401(k). There are no more defined benifits so there are no more promises/liabilities. This made companies much easier to value more accurately in the absence of these volitale swings. With companies easier to value. Investment banking and Private Equity soared.

At the same time more $$$ was to be directed to mutual funds (inside the 401K/IRA) making a boom for the mutual fund industry.

Lets recap
Winners
Investment banks
asset managers
Private equity
CEO's

Then there is that whole "little" thing about companies not making any promises to employees any more. A precident that help lead to hatred of and war against unions and companies generally treating employees like $hit. "We don't owe you anything" is the first necessary step toward abandonment. This virus has infected customer service (for a human dial 1).

Companies want guarantees from us but they are not willing to give guarantees to us. This was the begining of and promotes the psychology that business is above us and rockstars and can do what ever they want mentality that everyone is buying into and that is sold as the (new) American Dream substitute.

This game of 3 card monty that has stung the middle class is ruining America.

Smelly, thank you for your energetic reply. I and i would just like to mention free trade as a factor for concentration of wealth for the few at the expense of many. Execs saw that the margins were greater if they could get cheaper than slave labor to produce their stuff. The only thing in their way was tariffs. No problem, just dish out the kool-aid propaganda that tarrifs were bad, free trade was good, make the right political contributions to both parties and bob's your uncle. With the increased margins, the ceo pay exploded and the American worker was cut out of sharing the wealth he helped to create. When the retirement plan was eliminated the excuse from the kool aid factory was that the companies had to "compete." The corporate elite found this nifty little word "compete" was an excuse that fits all. Register the biz in Swiz or Ireland and pay no US tax because we have to compete. Eliminate health care because we have to compete. Eliminate minimum wage because we have to compete. Etc.

LK has it right! on all accounts save one: Can't raise taxes on the Robber Barons when they control Congress. In fact, under an Oligarchy, the Rich and Powerful ARE the Government - - in Fact. To Wit: The stinkin rich oil companies get a $4 Billion Corporate Welfare Check yearly from the Government; most large Corporations do not pay any income taxes; the Ethanol Industry gets a government Welfare Check, by starving millions of people World Wide; government bailouts for everyone except those that really need it, like small business, education, the unemployed, the poor, the sick, and the nation's seniors; everyone with a half a brain knows that the Nation could cut the cost of health care by ONE/THIRD - - SIMPLY BY GOING TO A SINGLE PAYER SYSTEM. IT WOULD BE AS SIMPLE AS PLACING EVERYONE UNDER MEDICARE! It's not rocket science! The Large Health Care Insurance Companies are pocketing 33% of the premiums paid by insurers. This is absolutely outrageous!

Both Political Parties are, in my opinion, corrupt to the Core. We do need a Third Party, and my understanding is that Independents now make up 29% of the Voters, so, there may be some hope!

One other thing: to break the grip of the rich and powerful, Banking and Investment interests have to be separated; and, the Fed, if it continues to exist, must be freed completely from the grips of Wall Street. Most sensible people now realize that Wall Street has an iron hold on key Government posiitons in addition to the Congress. In too many instances, the @#$% all come from Goldman Saks, and other, "Biggies." on the Street. This will be a tough nut to crack - - peacefully!

The latest stats show that ceo pay is over 1000 times the average worker. Then u have all the other execs like the cfo, coo, various vp s getting fat at the same trough. If some guy started the biz, built it up - then have at it. But 99% of the time the elites are guys that have been brought in and are there only for the plunder.

No, please explain.

Because most people don't go to the annual meeting.. and have no idea until stories like this are written.

I'd say 95% of the global population is clueless.. I don't give a crap.. just saying..

Because if you went to the annual meeting and brought this up, the suits would look at you like a cockroach and it wouldn't matter a hoot. They just don't care.

Because the executives are paid in stock, and then, having gained control of the corporation, vote themselves raises while laying off average workers to pay for their increased pay.