So a question for our finance friends who are involved in the zero based budgeting initiative (ZBB). Did the VSP package originate from the ZBB initiative conducted in 2018? It seems to me that once the feedback from 2019 budgeting cycle was completed using ZBB, there might have been the need to reduced significant headcount. Or, was this VSP a result of the $10B reduction announced to the street, and that Hans was brought in to give VZ his Hans-job? Either way, the overall reduction is a pure finance play; but I'm not sure if its VBB driven or $10B cost reduction driven.
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They are related. Every ZBB compensation target was created with the VSP in mind. The only way to get to $10B is with a massive restructuring of our employee cost structure. Have to shed the long time folks who are overpaid after years of being in the same jobs. 60% of positions will be backfilled in our org..albeit at a lower cost.
ZBB and VSP not related. ZBB and debt are. Hans was brought in to re-structure, aka hack people. Headcount is always the first to go. Someone from outside is always brought in for this type of thing - no ties to anyone in the company. His job is to lower headcount, restructure management. He is doing what he was hired for. I can't wait for 12/10 to see my roll off date in writing. This package, for me, is a good deal.
More made up terms for BS