Shareholder dividends total more than pension deficits

Of the 59 FTSE 100 companies with a pension deficit, 46 disclosed a deficit that was less than, or equal to, the dividends paid to their shareholders in 2007, according to the Lane Clark & Peacock’s report on Accounting for pensions 2008.

In 2007 Vodafone paid dividends of nearly £3.6 billion to shareholders, significantly more than its accounting deficit of just £41 million.

BAE Systems paid dividends of £397 million in 2007 compared with its accounting deficit of nearly £2 billion and contributions to its pension scheme of £594 million.

In 36 companies the deficit was less than or equal to half the 2007 dividend.

Back to Employee Benefits Report for Financial Directors – September 2008