SCHAUMBURG, Ill.-Motorola Inc. “is joining the parade of major corporations whose pension plans are proving to be a financial yoke,” and consequently will post a $500 million charge, Crain’s Chicago Business reported. Credit Suisse First Boston Corp. estimates that about 10 percent of the companies in the Standard & Poor’s 500 Index will take a charge to equity of at least $500 million this year to “cover the gap between their pension assets and pension obligations,” CCB said.
“They (Motorola) are trying to find the best combination of growth and equity valuation while maintaining sound credit,” said Bruce Hyman, a corporate credit analyst at Standard & Poor’s Corp. Crain’s Chicago Business is a sister newspaper of RCR Wireless News.
