Defined benefit plans - mergers; protection of benefits

Article Abstract:

RCA Corp's employees who were participants in the firm's defined benefit pension plan sued General Electric Co (GE) on the grounds that the merger of RCA and GE should have led to an increase in benefits. The court dismissed the case, citing that defined benefit plans entitle employees only to fixed payments regardless of the performance of plan assets. In its ruling, the Second Circuit court gave the meaning to the phrase 'defined benefit plan' and distinguished it from a defined contribution plan.

All Other Miscellaneous Electrical Equipment and Component Manufacturing, Electrical equipment & supplies, not elsewhere classified, Electrical Equipment NEC, Electrical equipment and supplies industry, Cases, Electric equipment industry, Acquisitions and mergers, Electric equipment, General Electric Co., GE, Defined benefit plans

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An end to stock appreciation rights?

Article Abstract:

Some public companies may eliminate stock appreciation rights (SAR) from long-term incentive plans as a result of the SEC's proposed changes to Section 16(a) of the Securities Exchange Act of 1934. SARs will become unnecessary as a result of the changes to Section 16(a). Stock option exercises will become exempt, and insiders will have increased flexibility in exercising stock options.

United States. Securities and Exchange Commission, Incentive stock options

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