Boeing Pension Cuts: Is this fair and necessary?

Here you will find a BBC news item. In essence, Boeing is cutting pensions for some 68,000 employees. This is necessary to curb the “unsustainable growth” of its long-term pension liability.

Here you will find this: Boeing’s fourth-quarter profits rose 26% to $1.23bn (£742m) as it delivered more commercial aircraft.

And finally, here you will find these words:

Boeing Co. awarded Chief Executive Jim McNerney almost $27.5 million in annual compensation for 2012, a 20% increase from a year earlier, as its jet deliveries surpassed rival Airbus for the first time in a decade.

Surging sales of Boeing’s 737 jet helped trigger executive bonus plans that were unaffected by global aviation regulators’ grounding of its new 787 passenger plane on Jan. 16 after battery problems.

Now for the dumb question: Is it conceivable that Boeing is increasing executive pay while cutting benefits for more lowly, ordinary employees? It is a dumb question, eh?

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