The Markets February 6, 2009

Another Media Company Takes 401(k) Match Suspension Route

Las Vegas-based newspaper company Stephens Media LLC has suspended its 40(k) match to save money because of the bad economy.
Reported by

A report on the Arkansas Business.com Web site said President and CEO Sherman R. Frederick made the announcement in a January 31 letter to employees.

Frederick said the suspension of the match of up to 3% was effective immediately and would last for the rest of the year, according to the report. Frederick also announced a wage freeze for all publishers and managers.

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“I take this step reluctantly, but it is necessary in order to help us maintain the financial health of the company,” Frederick said in the employee letter, according to the report.

Frederick added that the company’s newspapers “have been significantly affected” by “an uncertain and challenging time” in the industry.

The company joins a list of media companies that have suspended their 401(k) match, including two this week (see “McClatchy Suspends 401(k) Match’ and “Another Newspaper Announces Match Suspension’).

Data & Research February 6, 2009

Even Execs Hard-Hit by Economy

A new survey found 86% of executives said their shrinking retirement savings will mean working longer, with an average delay of 7 ½ years.
Reported by

A Reuters news report said the survey by TheLadders.com, a service catering to those making more than $100,000 per year, found that many responding executives were being forced by the economy to dip prematurely into retirement savings or their college funds.

Reuters said the survey found:

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  • Forty percent of those polled said they were forced to use retirement savings to weather the recession.
  • Fifty-eight percent of respondents stopped contributing to their 401k retirement accounts altogether.
  • Half said the recession would limit their children’s college prospects, and 40% said they stopped investing in their children’s college savings accounts (see “Retirement Takes Priority over Saving for College“).

“Nobody’s been spared,” said Robert Turtledove, spokesman for TheLadders.com, in the news report. “This is investment-savvy, smart-managing, high-earning executives. It’s not a knee jerk reaction. I think it’s saying that wherever you are, this is impacting everybody.”

The survey covered 1,162 executives.


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