case analysis british airways

SHANGHAI JIAO TONG UNIVERSITY
学士学位论文
THESIS OF BACHELOR

论文题目
Corporate Governance Arrangement: Pension Investment Scheme
Case Study: British Airways

学生姓名:
学院(系): 安泰经济与管理学院
指导教师: 倪旸
课程名称： 公司治理
Abstract

This paper identifies some of the main governance weaknesses that persist in pension fund systems by examining the case of British Airways. The paper highlights problems of poor planning in pension plans. The document sets out some challenges faced by the company and possible solutions to strengthen pension fund governance.

Keywords: pension fund system; governance; British Airways
Table of Contents

Abstract
1 Introduction 1.1 Case Background 1.2 Objectives and Methodology

2 British Airways Case Analysis 2.1 Background of BA
2.2 Types of Pension Plans 2.2.1 Pension Plans offered by BA
2.3 Problem Identification
2.3.1 Performance of Pension Plans 2.3.1.1 Asset composition of the plan 2.3.1.2 Pensions financing expense 2.3.1.3 Reconciliation of fair value and obligation
2.3.2 Factors of Huge Deficit 2.3.2.1 Rising inflation rate / Falling real interest rate 2.3.2.2 Falling investment returns 2.3.2.3 Rising life expectancy
2.3.3 Effects and Implications on BA 2.4 Recommendations to Reduce the Deficit

3 Ideal Pension Schemes
3.1 Eight Factors of an ideal pension scheme

4 Conclusion

5 References
1 Introduction

1.1 Background

Good governance is increasingly recognized as an important aspect of an efficient pension system, enhancing investment performance and benefit security. Yet, despite regulatory and industry initiatives, governance weaknesses persist among companies in global.
The governance of pension plans and funds involve the managerial control of the organizations and how they are regulated, including the accountability of management and how they are supervised. All pension funds have a governing board, which is a group of people