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Some of Canada’s biggest companies have let considerable deficits in their pension plans linger while pumping billions of dollars into dividends and stock buybacks, according to one think tank.The Canadian Centre for Policy Alternatives on Thursday released a report that found S Composite Index companies with defined benefit pension plans bought back $16 billion worth of shares and paid out $50 billion in dividends in 2017.Taken www nfl jerseys com together, the money given to shareholders was five times the value of their combined $12 billion pension shortfall, which was “heavily concentrated” in just a few companies, the CCPA report said.Out of the 90 or so companies on the index that have defined benefit pensions, the CCPA report said two thirds in any given year paid out more to shareholders than it would cost them to shore up their pension deficits.For example, the CCPA found that in 2011 the companies repurchased $8 billion in stock and paid out $32 billion in dividends despite having a $19 billion funding shortfall.Companies are allowed to have underfunded pension plans as long as they meet minimum funding obligations set by the government.The CCPA’s findings report comes as the purpose of a company is being debated again. Companies, issued a statement that committed to going beyond the devotion to the principles of “shareholder primacy” and to deliver value to customers and invest in employees, among other things. Over concernsit may increase inequality and divert money away from investment or wages.There are also concerns for taxpayers.
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