A Deep Freeze for GE Pensions

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According to the WSJ, General Electric Co. said it was freezing its pension plan for about 20,000 U.S. workers and offering pension buyouts to 100,000 former employees, as the conglomerate joins the ranks of U.S. companies phasing out a guaranteed retirement.

Questions:

  1. Who is the CEO?
  2. The video said the CEO has been aggressive. What has he done to help cash flow?
  3. How does this Pension cut help?
  4. Briefly explain the transparency problem that GE has.
  5. Explain how lump-sum payments to about 100,000 former employees, who haven’t started collecting monthly pension payments, will help the business.

Source:

Gyrta, T. (2019). GE to Freeze Pensions for 20,000 Workers. The Wall Street Journal, Oct. 7 (Retrievable online at https://www.wsj.com/articles/ge-unveils-pension-plan-changes-aimed-at-paring-deficit-debt-load-11570447318)