When labour and capital don't mix; American company pensions.(Enron's demise reveals huge conflicts in company pension plans)(Brief Article)
Economist (US), The, December, 2001
Enron's demise unmasks conflicts in company pension plans
EMPLOYEES who invest in their company's shares solve two problems, in theory. They resolve the issue of agency costs that arises between shareholders and the people hired to work on their behalf. And, more narrowly, they reap the benefits of capital appreciation, a fundamental component of capitalism.
The results can be spectacular. America is filled with tales of people who held jobs as cash-register clerks at Wal-Mart, or on the diaper-making line at Procter & Gamble, who survived on their wages but have made fortunes through steady accumulation of company stock in retirement plans.
The recent implosion of Enron, however, has focused attention on the risks to employees of such...
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