What's going on with BK stock? 5 years ago it was 53; 4 years ago it was 44; 3 years ago it was 36; 2 years ago it was 51, last year it was 44 now it's 43. It's going no where and not paying any dividends. Its negative growth. Investing in this is a huge waste of time. What gives ???
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Never will understand why folks without accounting, Finance, Economics or technology backgrounds seek employment in banking. It’s weird…. “When I grow up I want to be a clerk in Operations” said NO KID EVER.
That’s a common misperception. all four distributions were in the black and exercisable when the Bank had a change in control and Bob Kelly had the price up to 62. I still here that to this day but I exercised all four. I as selected for training and communicating the way that the options worked and to spread the good news.
I was so frustrated a few years later I couldn’t get coworkers to exercise them. Such a waste…
It is surprising that folks from a Bank, an investment firm have no clue on this.
The bank gives you 5% on ESPP - any person who is smart enough to plan - would have tapped into it to get a 5% income without batting an eyelid.
On top of that BNYM pays 27 c (increased from 24 c) every quarter which is what around 4% at current price. Yes Treasury pays 5.52% but it also paid 0% just a year back.
A 1000$ investment (rotating basis) gets you 5% + 4% = 9% return (may be a bit higher or lower based on stock price growth)
That may not give you a NVDA or LLY like growth. But this also does not tank like NFLX AMC
Great job Robin - stocks at 42
@6psv, a tool would use a term such as " we failed Buffet’s due diligence".
This reminds me of the good old days when we (Mellon Bank) employees received stock options that became worthless because of the pathetic stock price. If I recall correctly, only the first batch of 150 hit the exercise price. We received 150 options for 3 years. The remaining 300 expired without hitting their exercise price.
It was a horrible bear market that led a very likeable Marty McGuinn to make the bad decision to sell off our branches.
Exactly as I outlined… despite the tool who felt that Buffet didn’t back out at lightning speed after due diligence.
What a tool…
It wasn’t free because they reduced our 401(k) match
You probably think the new Covid tests are free
Scotty, but like it or not RSU distributions were free money. The bank cuts benefits every year and this was a nice gesture. I’m sure that we all would like a raise or a bonus but still… free money is always a good thing.
@5pif, yeah, 4,745 days.
I’ll take that as a solid confirmation that we failed Buffet’s due diligence, and in record time. I watch what Buffet does, and he did a 180 on BK stock within days of purchasing it. Obviously he didn’t like the situation.
Investors are more concerned about Nelson Peltz than Buffett. And he cut and ran from BK before Buffett did.
One of the reasons :
https://stockcircle.com/portfolio/warren-buffett/bk/transactions
Buffet dumped our stock - BRK was one of the major institutional owner - they kept below 10% but cashed fully now.
Below 43 today.
As “an owner” Robin must go. My 10 shares is plummeting due to his poor leadership
@3nxg, yeah, I find that most people, including my co-workers have no idea basic things such as what their actual tax rate and bracket bracket are much less things that require a little thinking. I remember a co-worker complaining that he paid a higher tax rate than Romney back when he was running for president. I wanted to tell her she's either making over $200k or she should fire here accountant because she should be paying around 6-8% even filing the 1040ez. I bet she wasn't making $60k back then.
Buffet and his people spent time with senior management.
He bought the stock as a value, not growth, play.
@3eci You are incorrect with your assertion, I’ll say no more
No, it’s not… It has nothing to do with Warren Buffet’s quick purchase and sale. He bought, clearly did more due diligence with the management team, and sold. Any attempt to link RSUs to Warren Buffet is dubious at best.
I don’t think that we all “pretty much understand tax laws”. Not when it comes to RSU’s, basis and hold time tracking. I remember when coworkers were totally flummoxed by the four Shared Success Mellon Options distributions in 2000. All four Options wound up in the black and were fully exercisable upon change of control. Few coworkers even kept the paperwork. The average employee believes to this day that only the first distribution was in the black and exercisable. I was telling our entire work group to exercise them. Few did. Most didn’t read the paperwork and even less even still had the paperwork which also contained their IDs and passwords needed for exercising the options.
Good for you! You’re clearly financially aware, understand equities and tax laws. You stand out here in a good way among people who cannot even comprehend free RSU’s.
Warren Buffet is far more complex than that. He certainly would have done more due diligence after his purchase, likely interviewed a few key ExCo leaders and clearly didn’t like the answers. It’s not like a high flying tech stock that is difficult to value and understand. Likely he analyzed it over two weeks, did more due diligence and sold. A sleepy custody bank can be analyzed over a week and you certainly get more access and better answers when you own a decent percentage of he float.
@3kxr, I've already discussed this with my financial planner and accountant and we determined there is no tax advantage for me because the cost basis is so high compared to the current price. Although it MAY be an advantage to someone who still has a lot of regular income. I retired early but most of my current income is offset by assets I depreciate in several side businesses.
Not so… employer matches in company stock have special tax status under IRS regulations. But you know it all because you have a few RSUs I bet.
@2vyk, hardly anyone would have tax benefits for having company stock in their 401(k).
I put my 401(k) contribution into company stock until they quit offering the discount. I would move it out periodically but I still ended up with thousands of shares which was pretty stupid on my part. I knew it was quite a gamble but I was more focused on my investments outside my 401(k).
Back in the Pre-Enron days when our 401K match went to company stock I used to move my 401K match into the S&P 500 every payday. People used to ask me why, particularly because purchasing shares in a company for which you work have favorable tax benefits in retirement.
I always asked them… why are you buying company stock? Look at this place… do you think that we are better or worse run than the average S&P 500? As it turned out, most employees actually thought that they were required to put the match in company stock. I would explain that after the Enron scandal and subsequent legal rulings, employees no longer had to put their match in company stock. I cannot tell you how many people were shocked by this information and immediately moved their match.
The interesting thing about Warren Buffet is that he is absolutely NOT a manager, let alone a micro manager. Buffet is on record for over six decades that he is not a manager, but that he is a very good judge and allocator of Capital which essentially means that he invests in companies which he believes have strong Management teams. Buffet and his company, Berkshire Hathaway, select their holdings solely based upon management talent. The fact that Buffet briefly invested in BNYM and quickly sold his stake speaks worlds about the lack of competence in the BNYM C Suite.
@1pjk
That's interesting about Warren Buffet dumping the stock. I didn't realize that because I didn't pay attention to this particular sorry stock even though it is where I work. First time ever in my long career that I wasn't invested in the company where I work. But that explains the "reward" to the employees. Didn't want to show all those shares with no buyers.
Robin is too busy peacocking around the globe to run the company. Not that it matters because he hasn’t shown any vision for growing the business. Only cutting staff. That strategy is not going to attract investors and the stock will continue to languish. The Board needs to realize it made a huge mistake and fire this uncreative management team.
I think we all pretty much understand tax laws. We see it all the time whether it is on added sales tax for purchases or taxes taken out of our paycheck every pay day. I doubt that the intention was to entice people to invest - regardless of any empty voices to that effect. We most certainly took a bigger hit with the change in the 401k matching. And it was probably meant to calm down complaints about that.
Donate to a charity? I do lots of that with annual contributions (Alzheimer's Assoc., Leukemia and Lymphoma, St. Judes, Shriners, Foundation for the Blind, Bascom Palmer Eye Hospital, Doctors without Borders). BNY Mellon matches some of those contributions 50%. The company I came from (which BNY Mellon acquired) matched those contributions 100%.
Only at BNYM would someone so institutionalized think 10 shares given less taxes and declining value, whilst taking away decent healthcare, increased premiums, waiting a year for 401k contributions, and clawback language, make it seem the firm cares
Only at BNY would employees deride free money. What jaded employees we have.
The stock is diluted anyway. And the only reason you got 10 shares is due to the Oracle of Omaha dumping the $hitty stock in the first place. For those who had to pay 25% or 33% of their IC for this garbage stock and made to wait 4 years to get it(against inflation) lost real money
Clearly employees don’t understand that the Bank does not control the tax laws nor are they interested in learning about investing. I find it to be incredibly sad that we have received a gift which was intended to promote financial literacy and understanding and instead employees simply mock it.
All that the bank can do is to lead you to the water but cannot make you drink. I’m sure that some employees are taking advantage of this gift and learning about investing, but sadly the predominant view here is an anti-literate mocking of a wonderful gift. It’s really cool here to bash the gift but ignorance is never bliss in the long term.
Oh well, you cannot say that Robin didn’t try…
It’s not free money, because once again, they reduced our 401(k)- for the 2nd time in 5 years. The net result is massive loss for the employee & huge gain for the exec’s.
Stock is at 43. If I did my job as poorly as Robin, I’d be shown the door.
@1ghb agree and you have to pick up the pizza. Not enough money to tip for delivery.
Who could possibly complain about free money? The gift is not large, unless you use it to become interested in and learn about investing which is the intent. But Jeez… don’t whine about free money. cash it out and take the family out for a nice dinner. Or give it to a street person down on their luck. Sheesh… donate it to a charity. Do anything but whine. Thank the Bank and do something good with it.
Many, probably most, employees do not receive RSUs as part of their compensation. The biggest joke is that 10 RSUs that were given to all employees last year so that you'd be more invested in doing a good job because you were now a shareholder. Of course, after taxes you didn't really get 10 shares but that's a different story (for me that translated into 6 shares). There was no commitment that we would get any more on an annual basis so really where exactly is the incentive??? For the possibility that the stock would increase a couple of dollars? Maybe that would pay for a pizza (with no toppings!).
Yes and where is it now?? And the stock traditionally is at its zenith just before the pricing of RSUs to sc--w with those getting bonus’ at or above 50k. Then it takes a nose dive
BK stock closed at $63.6 about 20 months ago on 1/9/22.