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After an initial lump-sum payment, annuities can be structured to pay a guaranteed monthly income stream for life, much like a pension.
Mr. Buffett's critics complain that while he supports higher taxes on the wealthy, Berkshire is structured to pay little in taxes and he has sidestepped Uncle Sam by giving away his wealth.
The deal will probably be structured to pay down the debt eventually, but in the meantime there's a $35 million windfall, quite ample to leave Calpers better off and still pay for a financier's yacht.
A pension is deferred compensation and is structured to pay a defined, monthly benefit upon retirement.
The deal was structured to pay Kesler $5 million per season and came a month and a half after general manager Mike Gillis announced he had suspended contract negotiations with all the Canucks' pending free agents until after the 2009 10 season.
Annuities are structured to pay out in a way that might cover some funeral-related costs and other financial eventualities.
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Overnight on Tuesday, fellow US tech group Apple, which also uses controversial tax structures to pay less tax in Europe, revealed its offshore cash pile has now reached $200bn – largely held through companies in Ireland.
The effort by the authorities in Brussels is part of a global assault on loopholes that have allowed giant corporations to use complex tax structures to pay small amounts of taxes.
The scale of tax avoidance in the Duchy of Luxembourg was revealed last week in an investigation by an international consortium of journalists, including the Guardian, which detailed how multinational corporations used complex structures to pay ultra-low tax rates.
Mr Welch linked the whole structure to pay incentives for good performance.The argument against conglomerates such as GE is that financial markets are better at allocating financial capital than managers.
"For a company that has arranged its structure to pay minimal tax in our market, to now see YouTube's treatment of independent Australian labels who provide so much of its Australian music content so as to further improve their profitability at the sake of local content creators is deeply concerning," said David Vodicka from AIR in Australia.
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