November 2, 2009 - News

Pensions & Investments Quotes Norman P. Goldberg about Recent Stock Contributions into Pension Plans

Pensions & Investments reported that companies were contributing billions in cash and stock into pension plans, aiming to boost funding levels. The publication quoted Norman P. Goldberg of Evercore Trust Company saying that he usually sees a “small handful” of company stock contributions in any given year, but now he’s seeing “clusters” of about 15 to 20 companies considering or making such contributions. Mr. Goldberg mentioned United Technologies Corp., Caterpillar Inc., JC Penney Co. Inc., Honeywell International Inc., PPG Industries Inc., 3M Co. and The Brinks Co. among other companies that contributed stock this year to their pension plans. Mr. Goldberg noted companies are contributing stock and preserving cash when they believe their stock is undervalued with the expectation that the price of the stock will rebound with the economic recovery. He stated that “These (stock contributions) will offset future obligations. When they contribute cash they would most likely contribute what they owe when it is due.”