I've been hearing rumors the severance package will be changing and not for the good. That will be significantly reduced. Anyone else hearing this? Anyone know when they could change it (as in annual, whenever they want, etc.)? Does board have to approve?
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The point is it’s not enforceable. That said, unless done anonymously, you could harm your reputation in the business community by disparaging a former employer. Read up on whistle blowers having a hard time of finding new jobs.
Wells Fargo doesn't care about the labor relations board, and the labor relations board doesn't care. I sent the labor relations board the wording from the severance contract where I have to sign a non-disparagement clause and they just said to try calling a local office. The federal relations board doesn't care and Wells still has the wording in the contract because they know they can get away with it.
Seven (?) years back you got one month of severance for each year employed. About five years ago, that changed to two weeks of severance for each year employed. And there was no maximum.
So there are still plenty of ways to get skerood on your way out.
Per a recent labor relations board decision, badmouthing a company can no longer be a factor in severance.
Severance is what keeps former employees from badmouthing the company. Shortening that period would increase the risk of that happening. And the ones with the most years of service would have the most to mouth off about. I can't see it changing, but new management is shortsighted.
If we could stop paying fines, then the severance $$ would not be a factor for the bean counters. Charlie will cut severance just like he did at his last gig. There's nothing in his way. God Bless.
that rumor has been out there for years. I think the only change is that some may have a higher chance of getting one these days then not. given recent earnings and earnings call there is a lot of expense being planned for and earmarked towards severance.
$300 million in severance sounds like way too much, but if anything now it feels low. Stats say the typical employee has 7 years with their employer. WF's layoffs have included tons of $100k and $200k+ workers, but let's say it's $75k.
7 years of service means 60 days of notice (8.6 weeks) plus 14 weeks severance, plus say an average of 6 days of PTO (1.2 weeks) being paid out and my math says that's 23.8 weeks or about 0.458 years. So $75k * 0.458 = $34,350 just in severance pay that shows up on the employee side.
The company's true cost includes another 7.65% more for the employer share of FICA, probably another $800/mo of the company's share of medical benefits, paying for the return shipping of the company laptop & employee badge, and other misc stuff. I wouldn't be surprised if WF's cost is $50k per severed employee.
So $300,000,000 / $50,000 = 6000 employees. WF is down from 273k to 233k employees (40,000) since the company's contraction started in 2020. Sure, a bunch of those were people who retired or quit, some who died, but a LOT were layoffs. If anything, in order to "only" have cost $300M so far means either that's only talking about 2023's layoff costs, and possibly that it's only cost them $300M in outlay so far.
In other words, that employees who just got laid off and are still in the notification period, the "$300M so far" just means its cost them that much so far this year without counting the rest they will pay out as severance after the notification period ends.
Add up all the layoffs for the last 3 years and the next 3 years and I'd guess it might be 25,000 employees over that 6-7 year timespan. 25,000 * $50k in total severance cost would be $1.25 billion. Roughly equal to what the CEO and his direct reports will make in salary and indirect compensation over that same time period.
@1wwd+1nJEkyGh I buy this as the eventual outcome, I have zero insight as to when, but all our peers have the 6 month cap already instead of 12 months. And since we just copy them…why not here too.
There was a video by the cfo on teamworks saying they were looking at the severance package because they had to pay out over 300 million so far
It wouldn't surprise me one bit, but are you aware that it's happening or just theorizing?
If they were going to reduce sevs it would have made a lot more sense to do it during COVID. They've downsized many thousands of people since then and could have saved a lot of money. I have no idea if they'll do it, but if it will sc--w employees they've at least considered it.
More likely to not pay bonuses. And there's precedent for that.
We should not put anything past Charlie and this Board. There is no sacred ground they won’t trample on to cut costs. They have shown nothing but disdain for employees.
If they are traitorous enough to send American jobs overseas, and shady enough to change the 401K match to the end of the year: reducing the severance package for outgoing employees would be a no-brainer to them.
They will cap it in 2024 to 6 months like everyone else
This rumor is posted about once every month.
This type of rumor causes worry and quiet quitting.
If CS was a real leader and just a decent human being, he would step in front of this now and assure the employees.
End result is he gets employees who don’t give 110% and more concerning, he gets employees who don’t give a sh$t.
CS is a failure and disgrace!
No. It's the same stupid rumor that has been posted here every few weeks for the past three years.
My guess is, if they are thinking about changing it the primary idea would be to motivate attrition. They know some people are just hanging on for their severance. If it wasn't much of a $ benefit, some would shrug, find another gig, and just leave voluntarily.
The only truth here is that this BS "rumor" gets reposted every 2 weeks.
No truth to that
The severance package is always on the chopping block when it comes to annual budgeting. There really hasn’t been any changes for about 4 years or so (last change basically put caps on the length of severance payments for employees with more tenure). Any changes that go into effect really wouldn’t hit till 2024 since the severance expenditures have already been budgeted for 2024. Will they reduce separation payments in the shadow of out of control executive compensation? I doubt Charlie’s 24 million dollar payday will see any reduction or clawback. Any reduction would be a clear attempt to drive up attrition numbers for those who have been hanging on for the current package. Would I start looking now? Rumors are rumors till they aren’t. Always have a plan B, C, and D. We’re all expendable to WF in the end.