I just saw the program announced today and it seems to be much better (at least in the long term) than the profit sharing it is replacing.
The grant amount is based only on location, # of hours and pay band. As a full time band 6 individual contributor in medium cost of living area, the grant amount is around 10,000 vesting over 3 years. Please share other grant amounts along with location, band, full/part time if you are willing.
I’m a band 7 in a HCOL area. I received $6k. Salary $100k so my old profit sharing would have been $2-3k. If this will be a recurring annual grant it’s better than the profit sharing (6% vs 2-3%). If it’s one-time then it’s net neutral over the 3 years depending on how the stock does.
@2prz - This is not replacing STI, this is replacing the up to 3% profit sharing match that goes into your 401K. Annual STI target remains the same (20% for Band 6).
Wow what garbage. Used to get $30k STI over the same period of time at band 6.
Band 6, $10,000...and for those who don't read, paid out over 3 years based on RSUs. Read the FAQ page.
@2ven Thank you, it is good to know the rule of 75/73 applies across the board, not just for the pension eligible. I appreciate the explanation!
@1zzz. If you are retirement eligible when you leave (rule if 75 or 73 for Involuntary) your unvested shares immediately vest and you are paid the entire remainder when you leave, paid at the share price on your term date.
9v $2500
please stop complaining the award is too small. remember it could be 0.....VZ is showing us appreciation... take it and smile.
Band 9 Customer Service $2500. I knew we would be screwed
1mdj:
It isn't just the 2020 award you have to consider. In 2021 you'll also receive another award. In 2022 you receive payment for 1/3 of the 2020 award, and 1/3 for the 2021 award, while receiving another award in 2022. So in 2023, you'll get the final 1/3 of the 2020 award, the 2nd 1/3 of the 2021 award, and the 1st 1/3 of the 2022 award. So in three years the awards should be (hopefully) considerably more than the up to 3% match, which I only recall getting the 3% once in my 15 years here, usually 1-2%.
Of course this is assuming the stock remains stable and our subsequent awards beyond 2020 remain comparable. Downsides to this would be stock decline, initial tax hit up front rather than pre-tax 401k match, and in probably the majority of the cases leaving money on the table depending on how you exit the company. Leaving money on the table is blunted somewhat since you wouldn't expect to get 401k profit sharing multiple years after you leave the company. So to reap the full benefit you'd have to remain with the company for at least three more years. Of course, that is not always our choice!
Does anyone know what the "retirement eligibility" rules are? I thought that only applied to those still eligible for a pension.
The grant total is over 3 years paid out at 1/3 which is less for majority than the 3% profit sharing we receive now. Check out the FAQs
This is yet another carrot they dangle in the way the 401k match is dangled and held.
Yeah $6K but spread over three years?
Looks like a scam designed to retain or lure talent. All the good people are leaving and VZ can't keep them...that's why they had to contract people who took the VSP.
Sales rep 2.5k
Band 8, 5000, high cost of living area
for band 6, is 10K every year? if yes. then it is much lucrative than profit sharing
Are these going to be taxed as regular income, as incentive income (flat 28%), or capital gains?
Band 7V $6000
Band 6, $10,000
Band 8V, value $3000, MCoL area
location really doesn't matter for domestic folks, only international.
Band 7T, Grant Value $5,000. Medium cost of living area