Thread regarding Fidelity Investments layoffs

Chairman shares are an IOU - not actual private company stock. This isn't SpaceX.

Be aware they don't walk the talk. The brown folk in Albuquerque don't get profit sharing and are paid significantly less than counterparts despite equal education, skill set and job title. Why you ask? Because they don't have to because people in NM are poor and should just be happy they have jobs. If you want to work for a sh** company like that, by all means come aboard.

One can also get retention bonuses if you are a technical S.P.O.F. on important projects.... especially customer facing stuff.

That happened to me 3? or 4? times during my run at FIDO

Those were more $$$ than any shares I got and the deal was always very simple "stay until March 30th 2006 and we will write you a check for $50,000"

this was on top of everything else

Run away! Awful company to work for.

People really have short memories. The bonus pool in 2023 was 92%.

Between 2018 and 2022 it was 96% and above.

You will make more money with Fidelity but pay attention to the culture. People really are not happy and teamwork/partnership is not consistent. It’s a bit cutthroat due to competition for shares and infrequent promotion opportunities. Meet with peers before you accept.

Agree that you need to be here more than 5 years to really reap the benefits. What people have said here is basically accurate, and I do think the total comp package is good, but like, only after 5 years are you fully vested in your 401(k), meaning you can keep 100% of the employer contributions. In the $100k salary example, let’s say your salary + bonus = $120k. If you’re contributing 7% to get the match, then Fidelity is contributing $8,400. Then in January they take 10% of your total comp for the past year and put that in your 401k as profit sharing. So $12,000 in addition to the $8400 is more than $20K per year that THEY are putting in your 401(k). But if you don’t stick around 5 years you don’t get to keep all of that $100,000 that they put in.

The past few years the bonus pool has been funded in the low to mid 90%s. So if you were a solid but not amazing performer you would probably end up getting paid $20k or $21k for your bonus next December ($25K x .93 x .9).

If you get shares, they pay out over 2-3 years. It can be a nice payout. But again, it takes time to collect it all.

Share awards have been and continue to dry up. I wouldn't consider that in any total comp comparison. 401k match 7% and profit sharing 10% are all but guaranteed. Bonus is variable but not by huge swings, the example provided by earlier poster is realistic.

@glb+1uYnOUan - thank you so much for the detailed understanding.
Fidelity work location is in Boston and the second company with another offer location is Atlanta. This is what I am weighing in. Boston rent is expensive and I and my partner want to buy something soon. So buying will be difficult too in if in Boston. Whereas, Atlanta it’s the opposite.

Share grants vary significantly based on the business line you're in. Brokerage and Workplace Investing effectively ensure that high performers at lower job levels have access to shares. In contrast, other areas like FFIO are known for offering little more than table scraps to those below director level, with the limited grants often going to the same favored individuals each year.

You can do a rough estimate pretty easily, but consider 2 of the 4 compensation pieces are mostly controlled by your manager, your managers manager (for sign off) and HR. If your manager does not connect/like you no shares and basic bonus ~85% of the pool amount if you just do well enough and in general I would not rely on shares as a consistent compensation component. Total wild card with shares and completely dictated by HR and then your manager. Also, you would have to really go out of your way to not get any bonus.

• Basic example if salary of $100,000, and you are in the bonus pool of 25%: HR is first going to set the maximum payout available, it will never be the full 25% ($25,000). So HR sets the max payout for 90% of the 25% available (So $22,500) then your manager will decide what percentage of that you qualify for. So he/she may say you get 90% of that. So you gross $20,250, which would be a nice year for you in this example, then, since it is a bonus you are taxed at a supplemental tax rate, which is typically a flat 22% rate (plus state) and if you contribute some of it to your 401k, say 7% for the match, you will net around 14K (not including any state tax) and in this example your overall P/S will generally be similar ~13k - 14k.

I would use the above as a general comparison. Yes you get a 401k match throughout the year (7% match if it has not changed), how does your other offer compare there, and are you a saver? If you are getting more up front pay check to pay check and actually saving that as a surplus compared to what you would be earning in salary at Fido that may be more valuable to you vs. a back loaded retirement account that is great after years of service, and a heavily taxes bonus paid out at year end. Most people who leave Fido have large tax deferred savings = 401k and not so much in non-tax deferred = general savings, because on average you really just don't make a lot of walking around money. Good luck and as the other poster says, toxic yes, I am sure all corporations are, but Fido seems an especially neurotic place to work, being private has great advantages, but it also has great disadvantages, which from a net standpoint seem to lead to an environment of weird secrecy and distrust.

There are other kinds of shares you can get. Holding periods and payout models vary. The higher you go up, the better they are. If you are lower and are a superstar (an extreme superstar) you will get some super secret things to lock you in for a few years.

The match, bonus, and shares are not guaranteed, especially if the economy sours. And in good times, not everyone gets a bonus. Considering how people at Fidelity would throw their own mother under the bus to get a great bonus, go for the higher base. A bird in the hand...

The financial rewards are good if you stay the course. For maximum vestiture, etc, you need to be there for 6+ years. It can be a great place to work if you’re in the right BU. Land in the wrong place and you’ll find toxicity.