Thread regarding DXC Technology layoffs

Executive incentive plan details

The exec bonus plan is called "Omnibus" and because DXC is a publicly traded company, the details of it are a matter of public record.

You can find the full disclosure here: https://www.sec.gov/Archives/edgar/data/1688568/000119312517113595/d371552dex105.htm

Highlight for you is that "75% of the Target Units shall vest based on the Company’s Earnings Per Share (“EPS”) performance (the “Target EPS Units”) and the remaining 25% of the Target Units shall vest based on the Company’s Free Cash Flow (“FCF”) performance (the “Target FCF Units”)."

In other words, the two things you hear them bang on (EPS and FCF) about are entirely because it yields them:

Cash:

" Executive’s target annual bonus under the AIP in respect of each fiscal year shall be 200% of Base Salary and his maximum annual bonus shall be 400% of Base Salary. Any annual bonus paid to Executive shall be in addition to the Base Salary and to any and all other benefits to which Executive is entitled as provided in this Agreement"

Shares:

"an aggregate value equal to 800% of the Base Salary in effect at the time of each grant, to be awarded during the normal annual grant cycle (with the first such grant occurring in May 2020) and delivered in the same form applicable to equity awards provided to other senior executive officers of the Company (currently, 70% performance-vested restricted stock units (“PSUs”) and 30% time-vested restricted stock units (“RSUs”))."

Its not about growth, customer satisfaction, sales, having a functioning business or anything remotely sensible.

Of course, all of these "real world" things are then levelled at us the workers as the reason why we can't have a pay rise.

And this "bonus" scheme is written into a contract, as long as they hit those fake metrics its paid out EVERY time.

In the rigged game that is exec bonuses, everything is fine and dandy.

Just thought you'd all like to understand the "them and us" in this mess...

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| 1732 views | | 9 replies (last June 7, 2024) | Reply
Post ID: @OP+1sMOaDcG

9 replies (most recent on top)

The document dates back to 2017. Pretty confident they have sth similar in place now. Who can share the current executive bonus plan?

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Post ID: @8eqc+1sMOaDcG

: @1ylf+1sMOaDcG. yep that’s me !

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Post ID: @8ybz+1sMOaDcG

"Well seeing as how earnings per share and free cash flow are both set to dramatically decline next year I'm guessing thay they're not going to bennifit much from this plan"

You'd think... But the thresholds no doubt will be adjusted down too. They set the targets...you'll see in the coming year how their published receipts vary very little.

Obviously there are better ways of structuring a scheme like this. Methods which drive actual results.

One of the things in the SEC docs say is that the scheme is designed to make executive reward comparable to similar companies.

It doesn't, because our execs pay is consistently absolutely at the top of wall street pay, outstretching actually successful and much larger companies of every type.

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Post ID: @1nis+1sMOaDcG

@rvx+1sMOaDcG there's like one retired guy who constantly posts on all the executive pages. Other than that I've not seen much.

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Post ID: @1ylf+1sMOaDcG

Where are these negative posts on LinkedIn? I've never seen one

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Post ID: @rvx+1sMOaDcG

Well seeing as how earnings per share and free cash flow are both set to dramatically decline next year I'm guessing thay they're not going to bennifit much from this plan. That said my guess is they'll change the plan and blame it on a the fact that they need a plan for a new managment team.

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Post ID: @qeo+1sMOaDcG

Whytf are the Execs getting paid, what has been achieved, just rewards for failure.

Strike on Networks Team going full out.

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Post ID: @cza+1sMOaDcG

This is precisely what is being discussed right now as confirmed by Howard Bolville.

The execs are getting paid first, and IF there are any crumbs left over we may get some, well Indians first, and everyone else is last.

Absolute ba----ds!

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Post ID: @sme+1sMOaDcG

No budget for merit pay increases for the rest of us. Spread the disgraceful treatment to Linkedin to show the world. Posting here is almost useless. Post where everyone can see the moral of the true work force.

I do and I need assistance, stand up and be counted

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Post ID: @opl+1sMOaDcG

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