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Thursday, June 15, 2006|
13 Lucky For Vanguard's Crew
Vanguard's "Partnership Plan," created by Jack Bogle in 1984 as a perk and way of sharing company profits with employees, may be inspiring more loyalty than usual this year -- the pay-out for 2005 holdings will be $81.40 per partnership unit, up 13 percent over 2004 dividends of $72.05.
Dan Wiener, editor of Independent Adviser, an unaffiliated newsletter for Vanguard investors, wrote this week that chairman John Brennan told employees the good news on Tuesday. The plan's annual dividend is set by the company's board of directors, Wiener explained, based on factors like asset growth and fund performance. While rewards for lower-compensated employees are capped at 10 to 30 percent of their regular salaries, the plan's dividends have historically increased at a rate of 16.3 percent per annum.
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