AOL CAVES: Time Armstrong Restores 401K Plans For Employees
Late last week, AOL?s CEO, Time Armstrong, revealed on a conference call with many AOL employees that the company would be changing its 401(k) contribution policy such that the company would match employees? contributions only at the end of the year. This meant that employees who contributed would miss any gains on the employer?s contribution made by the market between the date of the employee?s contribution and the end of the year, additionally, if an employee left the company part of the way through the year, they would miss out on AOL?s matching contribution entirely for that year. To make matters worse, it had appeared that Mr. Armstrong was blaming two complicated pregnancies, which because of Obamacare had cost the company approximately $2 million beyond the women?s basic benefits, for the changes to the 401(k) policy. Employee protests, internal and external to the company, led to Mr. Armstrong?s revoking of the policy change late on Friday.
See "AOL CAVES: Time Armstrong Restores 401K Plans For Employees", Jay Yarow, Business Insider, February 9, 2014