Timing is not ideal because it’s impossible for the Company to predict how many people plan on leaving with their bonus clears but they are required to rightsize the workforce before that occurs (early March). So, that is what creates risk for everyone given the Company is literally the backbone to the world’s financial system including the Federal Reserve. It’s bad for employees and the employer. There are no winners at all. I don’t think it’s unreasonable to expect layoffs, nor do I have any issue at all with the new management team immediately increasing the value of the company (perhaps to $70 an share over time) after years of operational inefficiencies and poor decision making (mainly due to both (1) a complete lack of any significant investment in technology for internal purposes over more than two decades and (2) failing at creating enough new revenue channels over a 15 year period that would increase the ROE).
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Exactly. “Literally the backbone to the world’s financial system including the Federal Reserve” is more than a little hyperbole.
In reply to: Timing of Layoffs
Regarding Bank of New York Mellon Corp. | Post ID: @sae+1kyai6HK
Bonus? What's a bonus?
5 hours ago by Anonymous
A bonus is something that people from New York think they deserve just because they exist.
BNYM is not "required" to right-size ahead of payout of incentive comp for the exempt staff, they opt to. They could look at historical data to determine the average attrition post payoff.
But I agree with several comments. The company is being very irresponsible with staffing levels, senior leadership (Exec Comm and their directs) have openly communicated, do whatever it takes to hit your financial goals. Creating significant risk for team managers and their staff. Senior leadership has forgotten about the work "responsible" before growth. Profit over people. And it continues to get worse. Tech has been so underfunded for years. And now Ops is suffering because we have too many tech talent making decisions for operations, which they do not understand. Poor operating model
As a long term investor, I hope they cut the fixed costs as quickly as possible. And work employees harder given the markets as these are tough times for everyone. But I hope they continue to reward those who perform great with bigger opportunities for their careers and solid long term incentives.. The will help the stock price over the long term. I would take $60 a share.
Bonus? What's a bonus?
Yes, State Street has Lao been having these issues.
Their plan is to migrate most of our jobs offshore but they can only afford so much severance at a time. So if there is more turnover before the firings, that's just a bonus.
@wha,
The problem is that reducing headcount only reduces expenses on paper. If anyone working here isn't making BK money, they shouldn't be here.
If the objective is to increase the stock price the easiest way to do it is to reduce your fixed costs. Either your top line focused or bottom line focused. The quickest way to reduce your expense line by removing headcount. Especially if the firm can double and triple load up the work load on others, willing to stay within the firm and except reduced salaries, reduced benefits, yet increase their workload. It’s really a game of increasing the employee’s productivity per work hour this is especially true when you’re in a commodity business like BNYMELLON, which is essentially run like the US government we are federal employees, make the minimum amount of money. They need to do this in the first quarter for number of reasons none of which is taking the charge off at the beginning of the year invariably Wall Street response favorably to 10 to 20% layoffs as it shows fiscal responsibility other part of the firm, hence why the share price will go up after the action occurs Certainly not right but it’s this is life on Wall Street And Main Street.
Bottom Line: they don’t care.
BNYM may be the plumbing pipes that support a large chunk of the finance industry and perhaps the world economy as well, but they aren't the only ones. Are State Street or Northern Trust having these issues? What about bigger banks that have a heavy retail component like Citi and JPM? I seriously expect BNYM to sell off parts of their service model - most products are loss-making but custody just isn't large enough to offset it.
I'd be pi---d if I worked my bu-t off for 2022 only to get laid off in January, before bonuses happened. sadly, layoffs cause more people to leave because they don't want to be next on the list - if they can use their ambitions elsewhere for more pay. Those that stay or want to be on the next layoff list can do the bare minimum to keep the lights on which will hurt the company even more longer term.
And 70$ a share? Please lol
The stock hadn’t seen $70/a share since Carter Bacot left. There’s a reason why the former mgmt executed the ill-fated merger with Mellon, a golden parachute to retire with.
What in God's name are you babbling about Rainman?
$70/share?!?! Ahahahahahahahaha