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> What's even more shocking is that the Globe has been doing great journalism—winning Pulitzers, etc.—and even turning a modest profit. But that's the differenc

> What's even more shocking is that the Globe has been doing great journalism—winning Pulitzers, etc.—and even turning a modest profit. But that's the difference between a growing industry (where Tumblr can sell for $1 billion with no profits or even meaningful revenue in sight) and a shrinking one. Well, do any startups offer pensions? Maybe that has more to do with it...

andrewhillman 13y ago
It's kind of funny that the Globe was purchased for $1.1B 20 years ago and Tumblr was acquired for this amount in 2013.
adw 13y ago
Yes. Don't most funded startups have 401Ks?
- japhyr 13y ago
  There is a huge difference between a pension and a 401k. If my understanding is correct, an employer only contributes to an employee's 401k while they are working. There is no future obligation to the employee. An employer who offers a pension effectively says, "if you work for me x years, I will continue to pay you y salary for the rest of your life."
  - adw 13y ago
    Isn't that a final-salary pension as opposed to a defined-contribution pension? They're both pensions. (Though I agree a final-salary scheme is much more attractive, and as it happens, I have a couple of years in one from an old gig.)
    - jeffdavis 13y ago
      A 401(k) is essentially just a retirement savings account. Money goes in regularly, the account has a specific balance, and any future obligations are managed in a well-defined way by a bank or brokerage. There is no opportunity to conflate the performance of the business with the ratio of savers to pensioners or with the performance of the investment itself. The other kind of pension, which we generally hear about in large companies or governments, is indistinguishable (to me) from accounting fraud. The whole point is to make the business (or government) look better today, and make big promises today, and hide the costs and obligations far into the future with optimistic projections. I am not a lawyer or expert on this matter.
jccooper 13y ago
No sane new organization offers pensions. Joint contribution individual accounts (like the 401k) are much more reasonable. Any old org with pensions and half a clue should be scrambling to get out from under them.

andrewhillman 13y ago

It's kind of funny that the Globe was purchased for $1.1B 20 years ago and Tumblr was acquired for this amount in 2013.

adw 13y ago

Yes. Don't most funded startups have 401Ks?

japhyr 13y ago
There is a huge difference between a pension and a 401k. If my understanding is correct, an employer only contributes to an employee's 401k while they are working. There is no future obligation to the employee. An employer who offers a pension effectively says, "if you work for me x years, I will continue to pay you y salary for the rest of your life."
- adw 13y ago
  Isn't that a final-salary pension as opposed to a defined-contribution pension? They're both pensions. (Though I agree a final-salary scheme is much more attractive, and as it happens, I have a couple of years in one from an old gig.)
  - jeffdavis 13y ago
    A 401(k) is essentially just a retirement savings account. Money goes in regularly, the account has a specific balance, and any future obligations are managed in a well-defined way by a bank or brokerage. There is no opportunity to conflate the performance of the business with the ratio of savers to pensioners or with the performance of the investment itself. The other kind of pension, which we generally hear about in large companies or governments, is indistinguishable (to me) from accounting fraud. The whole point is to make the business (or government) look better today, and make big promises today, and hide the costs and obligations far into the future with optimistic projections. I am not a lawyer or expert on this matter.

jccooper 13y ago

No sane new organization offers pensions. Joint contribution individual accounts (like the 401k) are much more reasonable. Any old org with pensions and half a clue should be scrambling to get out from under them.