https://money.usnews.com/investing/news/articles/2020-08-05/exxon-to-suspend-company-match-to-employee-retirement-plans-in-october-sources
Must be pretty bad there for this to happen. Retirement related benefits are Exxon's "badge of honor" when justifying why they are simply the best place to work. I assume the emphasis will continue to be their Defined Benefit Plan when it comes to bragging?
@yed - Why don't you take a 7% pay cut by investing more into your 401k (i.e. Instead of contributing 6%, contribute 13%). If you are already at your cap, we'll, that money is gone...
Assuming average salary is nearly $100k x 70k employees affected by this... Nearly $500 million. It's a sizable amount of money.
Anyone have a guesstimate how much cutting the 7% match will save the company a year?
The suspension of the company match to the savings plan is outrageous. There are many other, better ways to implement cost savings. For example, I would be glad to take a 7% pay cut for an equivalent reduction in work time. A lot of other companies are doing this.
I expect the cut to last a year, if we are lucky. This industry, as well as others, are in dire straits. Although unfortunate, these type of measures are needed to survive. I think another look at projects will happen, to further reduce capex. Unless it is absolutely needed to keep the lights on, we should defer.
To the guy arguing about employees versus dividend, other companies have cut way more employees to continue to find dividend.
Breaking News! Owners of a business prioritize themselves over workers! Employees hopping mad!
I'm not against cutting 401k match in general, but I disagree with WHEN they do it. Cutting 401K before cutting stock dividends (like other major O&G companies have done) is a clear statement that ExxonMobil cares more about their investors than about their employees.
FWIW - many large companies in the tech sector rescinded their 401k contributions as well. Makes sense for companies that are literally losing money.
All economic signals are indicating significant economic damage across nearly all aspects of the economy. With a commodity that is quite coupled with economic growth, it makes sense that economic downturns would have huge impact on business. It will be awhile before economic activity returns.