Before getting into flour, I make sure to clarify that I am talking about pension plans, not retirees and retirees, although there is clearly an important bidirectional relationship. I specify this because we are not going to talk about the implementation of technology among our seniors and people who, for whatever reason, have already left their work period. It’s also, without a doubt, a really interesting topic, and we already touched on it a few months ago when we talked about the digital divide.
It is not that we are talking today about pension schemes, whether private, public or semi-public, which are fully or partially supported by private sector investment. Because aim to try to guarantee the economic stability of their investors When the time comes, pension plan managers generally favor security, even if it means giving up operations that are potentially very profitable, but which involve a high level of risk.
This does not mean, of course, that private pension plans are 100% sure.. From unexpected events that have a huge impact on investment performance to scams that promise to be very profitable until the perpetrator suddenly disappears with the money or ends up behind bars, retirement plans based on Mutual funds can escape market dynamics.
A) Yes, it is understood that the managers of the said pension plans are particularly reluctant to the potential repercussions of certain operations, such as mergers or acquisitions, and who, on certain occasions and circumstances, do not skimp on measures to try to prevent their realization. And not always, but sometimes, when there are gray spots in them, the legal route can be included in their plans.
Pension Plans and Microsoft – Activision Blizzard
Before Microsoft’s takeover of Activision Blizzard made headlines, we told you that several U.S. state treasurers had joined the call for drastic measures to mitigate the effects of the toxic policies of the company on its share price. And it is that some of them are responsible for pension planswho were affected by the terrible management of the CEO of the company in relation to the toxic work culture that had prevailed in the company for years.
Well, this week we learned that New York City Employees Retirement System (a pension fund for city firefighters, police officers and teachers) decided to take the purchase transaction to court. The lawsuit alleges the CEO and board of directors rushed the sale in an attempt to evade their responsibilities in the internal management of the company, causing its stock to plummet, thus affecting its pension plans.
“Given Kotick’s personal liability and liability for Activision’s “broken” work environment, it should have been clear to the board that he was unfit to negotiate a sale of the company. ‘business.“, indicates the lawsuit. “The merger not only offered Kotick and his fellow directors a way to escape liability for their flagrant breaches of fiduciary duty, but it also offered Kotick the opportunity to earn large unprofitable profits.»
Pensions and Twitter
On the other hand, today we also learned of another action in this regard, but which points to the purchase of Twitter by Elon Musk. In this case lawsuit stems from Orlando police pension fund, responsible for the pension plans of the said organization. In their case, yes, they are not opposed to the purchase transaction itself, but to the conditions under which the two parties intend to carry it out.
And it is that, as we told you, Musk’s plans go through eating the nougat next Christmas being already owner, and probably also CEO, of the social network. The fund responsible for the Orlando police pension plans, however, rejects that it can be achieved in less than a yeara period they deem insufficient to determine the full implications of the deal, and this may mean that their investment in Twitter is not as profitable as it could have been.
In this case, the pension plan manager’s lawsuit against Parag Agrawal, CEO of the social network since the departure of Jack Dorsey from the company, was filed in the state of Delaware, as well as that of New York. against the purchase of Activision Blizzard, and is based on the fact that the legal regulations of this state prevent a quick merger, since Musk had agreements with other large shareholders of Twitter to support the purchase, including Morgan Stanley, his financial advisor and Twitter founder Jack Dorsey. His goal is for the operation to be completed only in 2025.
With information from Digital Trends and Business Insider