Boeing Setting Bad Precedent With Risky Pension Scheme
Boeing (NYSE: BA) retirees and investors should be very worried that the aerospace giant is stuffing its pension plan with company stock. With the plan suffering from a massive $20 billion shortfall, Boeing is making a risky bet with its workers' futures that it can maintain the torrid growth pace it's been on, transferring some $3.5 billion worth of stock into the plan, including shares it had previously bought back.
Rather than ease the risk associated with having such an unconscionable underfunding of its pension obligations, it's quite possible that Boeing will instead crash and burn and take with it the value of its retirees' benefits.
Image source: Boeing.
Source: Fool.com
Boeing Co. Stock
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