A nice change…

September 12, 2003

It’s always nice to see when a company takes the conservative road when it comes to the expected rate of return on their pension funds. As I note in Chapter 2, many pros like to look at this number because it tells them pretty quickly whether the company is likely to be aggressive on their other numbers. In the past, Automatic Data Processing (ADP) has tended to take the conservative path, even during the go-go years when other companies set their rates of return at 10 percent or higher. In its 10-K filed today, ADP noted that it lowered its rate to 7.25 percent from 8.5 percent last year. That may not be as low as the 6.5 percent that Warren Buffett has suggested companies adopt, but it’s a heck of a lot better than many other companies are doing.

Posted in: Disclosures, Perks

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