The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Survey finds majority of CFOs frustrated by pension schemes

The majority of north American CFOs think that, despite improved stock market performance, pension schemes are having a negative impact on corporate finances, according to a survey by SEI Investments. The survey shows that, during the year since they were last interviewed, CFOs have become even more frustrated by the burden of pension schemes. Of the 100 CFOs interviewed, 76% said pension schemes were proving detrimental to corporate finances, up from 61% a year ago.

More specifically, 62% said that pension schemes had lowered corporate profitability while 29% reported a negative impact on cash flow. Furthermore, 41% of CFOs claimed their company pension plan was distracting them from running their business.

When asked what they thought the biggest burdens were in maintaining defined benefit schemes, 78% cited volatile and unpredictable contributions.

?This has become an acute pain that is now spreading well beyond the traditional pension spectrum.? said Jim Morris, senior vice president of SEI's Retirement Solutions. ?Credit analysts, equity analysts and bankers are becoming keenly aware of how pension plan decisions are impacting corporate finance and they want to know that companies have a strategy to control this impact.?

He added: ?It's clear that CFOs want greater visibility and control of pensions and their impact on corporate finances.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree