While it's great to receive additional cash this month from VZ's Stock Together Plan, especially after a terribly tough and sad year, I wish corporate would stop over hyping the plan. The year 1 stock price is down from the grant date. Throw in a few dividends that were earned in 2020 and you basically break-even, not counting the taxes that will be taken out. If VZ awarded the year 1 grant as cash, most would have earned 7 to 12% on their money if invested in a general mutual fund. Yes, VZ is extremely generous in terms of compensation, but the ST plan was created to manage the bottom line by diluting payments over time and by implicitly creating an incentive to keep employees hanging on.
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@6tdl+19GtFPmN this is because you are retirement eligible and your award is non-forfeitable. This means that if you leave before the rest is fully vested, those taxes have already been paid and the rest will fully vest and be paid to you upon termination, less federal income tax. This is the same scenario as was used for the original 2 year shares agreement. All SSec taxes were paid on the first half if your award was non-forfeitable. These are IRS rules, not Verizon rules.
just reviewed mine, the fed income tax and SS taxes ate up 1/2 of the 1st payout, on the 1st grant payout........they take out all SS taxes for all three stock options years.
What gets me with the stock together award is that they claim the full grant towards your annual earnings when its not. We don't get the full amount each year it's that one amount busted up over 3 years. They falsely inflate your annual compensation to make it seem like we're making more.
Those first two payments were made. This is some new program, I don't know much about it, haven't seen anything show up on my account?
What happened to the initial plan that 1/2 was given last year with the other 1/2 to come this year. This stemmed from the Trump Tax cuts that impacted large corporations. Now we 1/2 then the other 1/2 was reinvested and we get 1/3 x 3 .
Or did Liwell make that up?
@1llf+19GtFPmN ah yes, the name calling again. You obviously did not get the sarcasm in that post. People whining about getting extra $.
Why is this even a topic for a layoff board?
@1cjv+19GtFPmN - Verlieson already has a talent drain problem with a mass exodus of its best with the VSP. Mostly what is left behind is boneheads like yourself. So yeah, give us zero and watch the remaining talent leave the building you twit.
One - They hyped the c-ap out of the stock issuance, but forgot to mention that they took away the 1-3% profit sharing match. We noticed.
They did tell you when they introduced this last year that the profit sharing match was going away
Two- Because we have chosen to be a dividend first kind of stock, we’re never going to see the appreciation in stock price like a TMO that doesn’t pay a dividend.
They pay you the DEUs (dividend equivalents units) for each tranche paid out.
Three - They conveniently forgot to mention that All SS taxes will be taken out in Year 1, meaning that you won’t really see much in your paycheck in year 2.
This is the same as the shares agreement and applies to any award that is non forfeitable at retirement.
While I think tying employee compensation to the stock price is a good thing there have always been a few things that have rubbed me the wrong way about this.
One - They hyped the c-ap out of the stock issuance, but forgot to mention that they took away the 1-3% profit sharing match. We noticed.
Two- Because we have chosen to be a dividend first kind of stock, we’re never going to see the appreciation in stock price like a TMO that doesn’t pay a dividend.
Three - They conveniently forgot to mention that All SS taxes will be taken out in Year 1, meaning that you won’t really see much in your paycheck in year 2.
Like the 5G hype machine, this was over marketed. We don’t like to feel like we are being sold. Just tell us the real deal up front.
Can’t you just direct the 401k match directly?
Speaking of 401k the old 1-3% per year input into my 401k was much preferred to this stock together c-ap. What a downgrade.
They could give you $0. Would that be better?
Its called force feeding the garbage stock to employees in a vein attempt to try and drive up the market price. The same goes for the 401k match going into VZ stock which I have to immediately transfer it to better performing assets. It is just more Verlieson propaganda.