Quantcast
Get breaking news alerts via email

Click here to manage your alerts
AOL boss reverses change to 401(k) plan
First Published Feb 09 2014 10:22 pm • Last Updated Feb 09 2014 10:22 pm

AOL Corp. CEO Tim Armstrong has abandoned an unpopular plan to delay company contributions to employee retirement accounts and apologized for citing two high-cost births as part of the impetus for the plan.

"We heard you on this topic," Armstrong wrote in a letter to employees Saturday.

Join the Discussion
Post a Comment

In a move to cut costs, AOL had decided to pay matching 401(k) retirement contributions in one lump sum at the end of the year. Workers who left the company before the end of the year would have received no contributions, and all workers would sacrifice interest or earnings on those contributions throughout the year.

After a worker backlash, Armstrong said the company would return to depositing matching contributions every pay period throughout the year.

In the letter Saturday, Armstrong also apologized for bringing up specific health care examples during a town hall meeting in which the retirement plan was discussed. During the meeting, Armstrong cited higher health care costs in general and mentioned the high cost of health care for two women who gave birth to "distressed babies."

"On a personal note, I made a mistake and I apologize for my comments last week," he wrote in the letter.




Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.