Effective October 2024, our execs will receive a higher compensation in the case of termination related to a change of control:
https://www.investing.com/news/company-news/solventum-corp-adopts-new-executive-severance-plan-93CH-3704333
„This announcement, based on a press release statement, indicates Solventum's commitment to providing competitive compensation arrangements for its executives, which could be critical in times of corporate restructuring or acquisition events“
I am quite certain our board will have negotiated those plans ahead of signing up for Solventum.
Nevertheless, Trian Partners just issued an open letter, putting pressure on our management to up their game.
May the latter begin!
In Utah it's against the law to compensate severance differently from officers or other job grades. Meaning anyone in Utah can get the executive severance package. Just need to ask.
SEC should be looking into this seriously especially if Solventum is an acquisition target in the near future.
We know for certain now this company is intended to be a takeover target, just like Covidien. Why else would they build their golden parachutes in that manner? Markets that served us well have been deprioritized, and subs are little more than glorified sales offices. What a shame.
And look at the timing. This executive severance plan was approved in October. And the early December layoffs were so broad and deep that that conversations would have been happening in October. So even more sickening that both conversations were happening at the same time.
Corporate greed and avarice is simply off the charts.
Nauseating.
This decision provides the wrong kind of motivation.