Now that the company is cash flow positive, why not offer a voluntary early retirement package. I’m thinking a 2/2/2 (+2 years service, +2 years age, 2 weeks pay for every year of service). So many people would leave, they could announce 0% NSI for 2022, and maybe 2023.
12 replies (most recent on top)
Shareholder here: I think a 0+0+0 retirement package is best...Simply PIP bottom 20% of management and professional people over 55 and RE. Next year, repeat. Company will be down 40% of highly paid positions in 2 years plus, the remainder will be pushed down in ranking by 20% this year and another 20% next year. Thus they will be eligble for small pay raises and fewer EBU/RSU (big cash savings). There could be additional savings because management could force these CL28+ out by threatening to not allow vesting of the RSU. Use the ranking process to PIP weak CL28+ and weak executives. What is good for the goose is good for the gander. Then lower the CLs of these jobs or wipe them out, so younger folks are not promoted to higher paying positions (saves more money that can be distributed as dividends or to buy back stock.
We already did it in 2021, we had >200 volunteers for 150 packages in Brussels as negotiated by the unions. The package was pretty good if you had 10-20 years, NRE package wasn’t great though. Over subscribed which tells you something.
If they did it some of the other European countries I would suspect that given the demographics we wouldnt have anyone left !
Would reduce the number of expensive, deadweight (as we are known by our much more superior younger colleagues) RE and NREs.
The pay to leave quote actually was from Upstream Executive Harry Longwell. And after 1986 they only offered voluntary packages in very limited circumstances usually targeting retirement eligible people or overstaffed skill sets in 1994.
A voluntary package would definitely clear the deck for those that want to stay.
Please do not give the BS line about “we do not pay people to leave”. I’ve seen this quote attributed to Lee Raymond, but I was directly involved with a separation package offered during his tenure. And he paid people to leave.
Pride
Fearless Leader is on record as having said “…we don’t pay people to leave the company “. Which is exactly what happened the past 2 years- he didn’t pay people, and they left the company in droves.
Might improve morale.
Voluntary packages ? We can’t waste money that way, if we have cash we can always give even larger raises and bonuses to the geniuses who lead us (into disaster).
@yap+1eybvIwf
What you’re advising is getting rid of the HiPos. Wise move.
Why throw money away? Far better to make a concerted effort to find the remaining deadwood and the very special low-efficiency snowflakes and get rid of them.