Thread regarding Charles Schwab Corp. layoffs

And most everything else was up 4% or more…

SCHW rose 4% today. Oh my.

SCHW dropped 4% today. Oh my.

Phoenix still has the advantage that there are still two data centers there, about 10 miles apart. Elvis left the building(s) at Schwab long ago. However, they did renew the lease at 211, for another 20 years about a couple of years ago. Denver is an interesting story. New campus. No people there.

And don't get me started on the El Paso office. LOL.

With Schwab moving the corporate office to Texas, the majority of new positions are moving there. Presently, they are shrinking other venues by attrition. When a person quits in Phoenix, for example, the new replacement position is in TX only in many cases.

That is why most of the people I see leaving because even if they wanted to change departments, they can't. Unless they wanted to pack up their family, tell their kids they will make new friends, and go to a down where they don't know anyone and the housing prices are CRAZY close to Westlake. So, you can get a house 90 minutes in bad traffic eventually to get back to work.

Honestly, doesn't it make more sense to move to a company that will give you a signing bonus, and pay you want you are worth? I would rather choose a company that has roots in the town I live in and not one that is vacating the premises, one job at a time.

Schwab moved from San Francisco long ago... and one department at time... they were all given the letter that read: If you move to Phoenix at your own expense, you have a job. If you don't want to move... Your last day will be X date. Thank you for your service.

It might depend on if you want to leave on your opportune terms, or their unfavorable terms.

We have been seeing 1 or 2 top performers per week leaving Schwab, which many not sound like a lot, but for key individuals, it is devastating. The 5% might keep the 'just thinking about it' people around. But for some who leave for 20-50% pay increase and signing bonuses of 10-30,000 dollars for moving to a new company, how many could say no to that? I certainly don't blame them for doing better for themselves and their family while the opportunity is present. It may not also be a choice like it is now.

It is probably a great idea to check payscale.com and other sites to see what you are worth these days. We might all be surprised.

But bonds can be used for anything…who said This was rentention? Probably to find capex for new company

$1.6M in Schwab bearer bonds, with coupons attached.

No retention was offered.

I have heard anywhere from 50k to 150k one time lump sum cash payment that vests one month after clearing conversion.

$75K RSUs and ESOPs, with 4 year vesting period. $25K one time cash bonus.

Anyone care to share what retention bonuses have been offered?

5% raise - yet layoffs every quarter - wow - they could give you a raise and then let you go. Of course the 5% hits the news stand but not the layoffs every quarter. Beware the conversion may take more than a couple years!!! Be smart and take that increase and still go out and find another job. Be sure you are "Owning your tomorrow"

Legacy Schwab here. We are leaving en masse because of the low pay, compared to the rest of industry.

Having a job is always preferred to not having a job. Severance is never enough. Not everyone is fortunate enough to get a year of severance and 2-3 months can evaporate quickly. It’s always hard to find a job when laid off even in a tight labor market. There are built in biases about why you were laid off in the first place

From what I see, a significant number, particularly from the legacy Schwab side, have been leaving. And from what I have heard, reasons include compensation, inflexibility in work location (in office vs at home) and general uncertainty at Schwab.
This will lift morale and many will appreciate the increased flexibility in work arrangement. The hope is that may stem the attrition.
The company still has to hit targets for expense reductions from the merger, though. Per the last 10Q, so far they have realized 33% of the expense reductions, they want to reach 40% by year end and then realize the remaining 60% over the next couple years.
So still many more heads need to roll over the next couple years to hit the target savings.

@xbe+1cqXF6BN
You potentially got a 1 year package. I'd take that over the 5% base increase any time. Pffff. Some people don't know good they have it.

As someone who was laid off a few weeks ago, I find this to be an insult and such a slap in the face. The fact that it’s been blasted all over news and social media sites, is even more insensitive and tone deaf. But hey, “we’re all family here, right?” Pfff

I got a 10% increase in pay.

Interesting. I just got 5% reduction in pay. I'm a knucklehead associate.

They’re supposed to stay current with the market in regular market adjustments every couple years. At least that’s how it worked at Legacy TDA. Since the made an across the board 5% raise, it makes me think they don’t have time to wait for market adjustments to happen. People are probably leaving for more than a 5% increase though, so I’m not sure how much this will stop the bleeding. I’ll take it either way.

The 5% raise was almost to be expected. Every single one of our competitors has been raising their base pay and benefits during the pandemic. They have to be remotely competitive or their staffing will be obliterated by year end recruiting goals from other competitors.

No one is going to say they don’t appreciate a raise, but this is more of an acknowledgment of the market realities than true appreciation for the associates. Likely to be a very long winter/spring if staffing issues aren’t quickly brought under control.

Also why was this a PR event?

What’s this mean for salary changes in Dec?

Yes I was very shocked at the 5% raise - it doesn't make up for the fact that I think there is no future for my team. But It makes me hang in there just a bit longer.