One of the most enjoyable parts of this class was getting to interview Bob Rooney of Timken. We met at Panera and got to record an interview with him. The interview was about an hour-long but it was filled with very good conversation. This further shows that the structure of this class is not all classroom-based, but structured with out of class activities which is one of my favorite things about it. Below are the interview audio and transcript for those that are interested.
One of the most interesting parts of the interview has to do with something Bob Rooney Said regarding the changes in retirement plans when FASB-106 came along. Rooney mentioned that companies had to come up with a census of all employees and costs of benefit plans after retirement. This added a huge liability to the balance sheet which made a lot of companies stop offering retirement plans. A balance sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Figure 1. Employer Provided Health Insurance
Figure 2. Employer-Provided Pension Coverage
As you can see from the graphs above, there is a pretty rapid decline in amout of companies that offered pension and healthcare between 1980 and 1990, which was before fasb-106. Between 1993 (when fasb-106 became active) and 2000, there was actually and increase in offered pension plans. However from 1993 to present day, there has been a steady decline in healthcare benefits, which supports the claim made by Bob Rooney during the interview.
Towards the end of the interview, I asked Bob Rooney if he had any regrets throughout his entire career. What he told me next is that the only thing he wishes he had done differently was to spend more time with his kids. But other than that, he seemed very pleased and content with his career choice in hindsight. Him discussing that he wanted to spend more time with his really tugged at the heartstrings. This resonated with me because my dad was also a really hard worker so I didn’t get to spend much time with him growing up before he passed away when I was only sixteen.