I’m close to retirement and am wondering if anyone has heard anything about an early retirement package. This would reduce a lot oh the higher salary workers, for sure.
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If it is bridging to retirement (2+2, 3+3 etc), most of the money will come out of the pension fund so it will not be opex. And if it happens by year end, they'll get a lot of people off the books for next year, which has advantages of its own. All that for US of course.
Doubt it. Australia law requires 2wks per year of service severance pay. USA has no such laws, and y’all know how EM is a stickler for following the laws.
If I were Darren I’d probably cut salaries by 10% to drive retirements as pension is based on average of highest of 3 consecutive years’ salary in last 10 years.
https://www.oecd.org/els/emp/All.pdf
Where would the money come from for a package? I think the next thing to take a hit is health insurance. Higher out of pocket premiums for employeess.
I believe there will be some type of buyout or bridging to near retirement folks as well as packages for mid career people. I doubt it will be lucrative. The Oct 1st termination of the 401k match is designed to make packages look more attractive. All this is just a guess.
XOM policy is "no golden parachutes."
Australian voluntary severance program confirmed. TBD rest of the world for now
In some ways American capitalism always relied on taking advantage of the conscientiousness of honest, hardworking people - that their conscience, and fear for their security,, would not let them see the game played on their backs. Bur capitalism inevitably got too greedy and paradoxically is getting rid of those who make it possible... It will be interesting to see who will produce going forward after they get rid of the worker bees.
@1uzv, I've always taken to heart the company mantra about maximizing value, so I am looking to max value for myself of course, just like the company does. If the numerator (salary) won't increase, I can decrease the denominator (my input) to maximize the value I am getting, and invest my effort where I can get better return. I manage my brownie points against RGPs to hopefully exit with zero balance.. You call it retirement in place, I call it smart investing. Capitalism is brutal and cuts all ways.
If you’re in Australia
Can’t believe they haven’t already identified the greedy retired-in-place, waiting around for “incentives”.
No buyouts, no packages.
Just golden parachutes for those at the top.