Thread regarding Charles Schwab Corp. layoffs

SCHW changes from a TDA perspective.

  1. PTO for service > 10 years: lose 8 days a year in vacation. We gain 1 holiday making our net loss 7 days. We do gain 10 days of sick time but will be reprimanded if we use them all. Seriously, who uses 10 days of sick time a year. It will be a benefit if someone gets a serious illness but that is what short/long term disability is for. I'm guessing at most people are sick 2 days a year so that leaves us now with a net loss of 5 days a year or 25 days over a 5 year span. If we're lucky enough to make it 5 years then we do get back 20 of those days for sabbatical leaving us with a negative 5 days over that time. We will lose much more if we don't make it to the 5 year increments. Finally, sick days are not paid out at departure like PTO is.
  1. 401K. SCHW gets a 5% match vs TDA 3% match but we lose 3% profit sharing leaving a negative 1%. I assume many associates miss out on the 3% because like many they can't afford to contribute to their 401K
  1. PFP. We will not get our "mysterious" PFP payout until after the year, so if we leave 10 months into that year we lose our PFP payout which is 15 - 40% of our pay, that is huge.
  1. SCHW Stock purchase program is the only real gain for TDA. We get a 15% premium on SCHW stock but we can no longer afford to buy it because we no longer get a PFP bonus until the end of the year. Hopefully we make it that long.
  1. HSA contribution - TDA $1500, SCHW is $1500 if we jump through additional hoops to gain their blessing for the additional funds.
  1. Pay schedule - had to lose a week pay. I know we will get this back when we're laid off but its still an inconvenience.
  1. Had to wait 3+ months for our merit increase.
  1. SCHW was extremely quick on getting our 401K money moved under their supervision. That was probably the only thing they communicated and executed quickly, wonder why.
  1. Transparency - Still don't know what our job titles are or how our pay will be split out. We are suppose to take comfort in knowing that our mix will not go down, even though the bonus is a secret mystery each year. Transparency I feel is the biggest weakness, even though mgmt has the answers, they don't communicate them until just before they impact us. Super low moral and distrust in this new era. Like many of the Schwabbies have said on this board, "we bought you, get over it," trust me, that is exactly how we feel we are being treated. So you can tell us all to quit, but then your $20,000,000,000 investment is worth nothing if the clients can't be served.
  1. Layoffs - We get the privilege of waiting around each quarter to see which department will be let go since we know SCHW is the systems of choice. After October the layoff benefit is dramatically reduced, what an incentive to stay.
  1. No gym reimbursement, no idea on cell phones. Small but worth noting.
  1. SCHW Healthcare appears to only offer high deductible plans. Don't know a lot so this may or may not be an issue.

In short most of the changes negatively impact TDA, some might be temporary but negatively none the less. Pile that on with what we are fed on how much better everything is with SCHW you can get our frustration. We are told "who are you going to believe, your lying paycheck or the executives who will gain enormous wealth once this merger is complete." I am extremely proud to be a part of TDA, hopefully I can say the same thing with SCHW in 10 years.

If anyone has additional legitimate changes, positive or negative, please log them here.

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Post ID: @OP+1b1EHSEC

22 replies (most recent on top)

But the pay differential between Legacy TDA and Schwab is also based on the geographical differences. We're not taking into account that Schwab was headquartered in SF since its founding, and have significantly expanded into the areas such as Austin, Westlake, and Denver. Pay in SF, Austin, Westlake, Denver is higher than the many areas which Legacy TDA has a presence, but Schwab does not.

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Post ID: @hhla+1b1EHSEC

@9rkq+1b1EHSEC

Legacy Schwab here. Just looking through the list of 12 items from the OP, I would most of the items are "smaller" benefits. So what you are saying is that Legacy TDA folks may make 30% less than the Legacy Schwab counterparts in terms of base pay, but you make up for it with much higher bonus potential. For example, 15% up to a large 40%. And that you will lose this bonus structure and adopt the Schwab one, which is probably around %15 depending on your performance and grade give or take, but not make up for it in the lower base pay. Correct?

If so, that is really horrible.

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Post ID: @9pbk+1b1EHSEC

@9rkq+1b1EHSEC

But Legacy TDA had a PFP payout of up to 40%. That is huge!

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Post ID: @9zpq+1b1EHSEC

Just two words. $76.

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Post ID: @9wzv+1b1EHSEC

TDA associates don't make close to 200K + 30K in bonus, however, we did have better benefits. I believe that is one of the basic points of this post, SCHW is taking away from TDA where it can to match SCHW lower benefits, but its not lifting TDA up to match SCHW in other areas where it exceeds TDA, pay being one of them.

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Post ID: @9rkq+1b1EHSEC

@8ond+1b1EHSEC

No. ESPP, with the 15% discount, and the ability to contribute 10% of your regular pay and bonus payouts , when continuously accumulated every quarter for the past 12 years straight, with dividend reinvestment option activated translates into a lot more than a 1.5% bump in pay. When you make around $200K/yr base plus another $30k in bonus, thats some serious change.

Lets not forget accumulated RSUs and ESOPs to boot.

With shares at around $75 closing today, and some shares being at $14 in late 08 unpleasantness... some serious change folks. Definitely not 1.5%. Woo hoo.

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Post ID: @8kks+1b1EHSEC

ESPP basically gives you a 1.5% pay bump minus any taxes you have to pay on that. Money is money but I hardly think 1.5% of a 60K year job which is about $900 a year is worth a woo hoo hoo, maybe a woo, but not a woo hoo hoo. On a final not I year SCHW base pay is better than TDA's, I wonder if they will give us that benefit.

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Post ID: @8ond+1b1EHSEC

Assuming most of you have NOT been accumulating shares from ESPP purchases, RSU and ESOP awards, based on all the negative thumbs down on previous posts. Let me another around of woo hoo hoo. Woo hoo hoo. Still hovering around 75 today.

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Post ID: @8byv+1b1EHSEC

Woo hoo. Hit $75 plus today. Can we get another woo hoo? Woo hoo.

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Post ID: @7tnc+1b1EHSEC

I just have three words in response to Schwab benefits are bad. $74. Woo hoo.

Nuff said. Tribute to ESPP maxed out for 12+ years straight, and accumulated ESOPs and RSUs for past 10 years. Can I please get a woo hoo? Woo hoo. Millions baby. Makes for everything else.

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Post ID: @6wyp+1b1EHSEC

Schwab benefits are not bad, as I able to retire if I wanted to now in my early 40s. ESPP is a 15% discount, which I contribute the max every paycheck of 10%. Lets just say I have been accumulating ESPP shares for over 12 years now, with dividend reinvestment, and those shares just hit $74 today. Can I get an woo hoo? RSUs and ESOPs. I got awards almost every years during a stretch. They have their expirations but ge-z louise, did I say shares hit $74 today. Let me get another round of woo hoo.

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Post ID: @4fji+1b1EHSEC

Actually from the tech side it looks like TDA will be the winner at least from a trading infrastructure perspective. But I’m guessing the final decision won’t actually be announced until it’s time to start pulling the plug on one or the other.

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Post ID: @3gya+1b1EHSEC

Oops! gave away another clue about myself again. Dennis is zeroing in on me!

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Post ID: @3lge+1b1EHSEC

@2dif+1b1EHSEC I receive a $50/month cell phone stipend - regardless of carrier - from TDA, which probably goes away after HRC. So yes, happy to complain about maybe a 10% discount useful at only 2 carriers.

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Post ID: @3ngn+1b1EHSEC

@2dif+1b1EHSEC thank you, great one. Wow, cellphone discounts. such amaze. much wow.

All hail Chuck. Obey Walt. Do not question authority.

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Post ID: @3idm+1b1EHSEC

Complain. Complain. Complain. You got bought. Now u get the same benefits as Schwabbies. U dont like it? Don't let the door hit you on the way out. Oh, and you get a discount from Att & Verizon, but you'll probably complain about that too

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Post ID: @2dif+1b1EHSEC

Product managers are 57, but senior product managers are 58

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Post ID: @2iol+1b1EHSEC

Do product managers fall in the under 57 level??

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Post ID: @1rys+1b1EHSEC

I’ll believe it when I see it if they change the health care plan, Schwab went all in on high deductible health in 2012, trying to tie it to Obamacare being rolled out. And, Chuck was openly campaigning for Romney at the time. During layoffs, they definitely targeted employees 50 and over, adding in a few younger people already on written warnings to make sure it wasn’t age discrimination.

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Post ID: @jnr+1b1EHSEC

Amazing summary. Thank you.

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Post ID: @sgr+1b1EHSEC

Yep, you covered most of it. Their goal is CLEARLY to send TDA people running for the door so they can pay less severance. It’s insane though because they need those people for the major software assets they acquired. TDA associates “mapped” to level 57 and below are going to hourly, which is either going to pi-s them off enough to leave, or make for insane overtime costs. I like that we are fully vested immediately in the 401K, but cannot get clarity on the parental leave - I bet it sucks. No Schwababy for me. The word is they are going to add a PPO option but yeah, the health plans suck. At least they backtracked on RTO... I anticipate a huge exodus in March 2022 after the bonus pays out.

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Post ID: @eqg+1b1EHSEC

Schwab benefits are below average, no matter what they might want you to think.

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Post ID: @jnv+1b1EHSEC

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