I’m curious. I read these boards to try and understand the history of Oxy and APC. I actually was just hired by Oxy right before Christmas, so I know I’m on the chopping block. I’ve accepted that. I’m not eligible for an package really, but I am curious what kind of VSP the LAPC employees received last fall before I was hired.
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I got 15 months severance. I got 10 months to find a job which is not likely. If I do get a job, I will not be making what I was. Overall, I lose money. Like the poster said, I am spending quality time relaxing with my family, however, I am stressing hard the whole time worrying about getting a job. She I guess it’s a wash all the way around.
I was worried about making the age cut then they came out and offered to everyone over 40 which pretty much told me they didn’t want anyone. No questioning what you do or offer, no org charts so you get the picture check in hand or what’s behind door number two. Sure I wanted to stay as APC had premiere benefits it was in the oil business and generous towards employees but APC was no longer so didn’t fool myself things would be the same. NEVER imagined industry to be doubled wammy by prices and cov19.
@izpk: thank you for a detailed, easy-to-follow response. I sincerely appreciate the effort you put into answering a lot of questions on this post. You must have been in a leadership position—your response exudes intelligence, professionalism and sincerity to educate. Thanks again.
@1cxh: seniority for the COC/VSP was determined by pay, and not by years. You add together your base salary plus your maximum bonus in the past 3 years, and then divide by 10,000, and that number (rounded up to the next integer) determines how many months of monthly compensation (base salary + bonus) you receive, capped at a maximum of 24. So if your salary plus max bonus was $230,001 or above, then you received 2 years of compensation as a lump sum, plus the extras. So simplistically, if you made $250K in salary plus max bonus, you received $500K as a lump sum, plus 2019's bonus target at 1.5x, plus PTO payout for 2019 and 2020, plus all LTI vested. For some it's a golden ticket, if they are close to retirement or start another good job soon after. For others, it's a nice cushion to ride out the current market, but it may not be all that great long term. Just depends.
I'm not sure if this is an added benefit for many other LAPC employees, but for me it was. I had quite a bit of time off prior to starting a new job, which was time with my family that was great. How often do people in the U.S. get a nice sabbatical from working full time to be with family? Even if I have to work an extra 6 months or year around retirement because of this break, it was worth it to me and my family to have the time off now, versus right before retirement. For me it was stress free because of the severance package. I know that may not be the case for everyone who takes a break, especially with current job prospects for some, but time with family and loved ones can never be replaced. I hope you're all able to enjoy some of that in these WFH and turbulent times.
What’s considered seniority at APC?
I was 15 years from full retirement. Simple math (rough estimate) math:
New job pays $15,000 (x 15 years) less than what I was making= -$225,000
Loss of potential bonuses: -$25,000
There’s a minimum loss of $250,000 without considering any other factors like benefits and gap year in employment, etc. so I guess come out about even financially? Not really a “golden ticket”.
@isxr: how long were you employed at APC?
I'm on the more fortunate side than @1fex. I had enough seniority that I received the full 2 years of salary plus bonus, plus LTI all vested, and vacation paid out. I didn't have the old pension, but still had a decent chunk of the defined contribution plan roll over into my IRA. Also, because I'm not a Geo or Engineer and am not tied to the Oil & Gas industry, it wasn't too difficult finding another job, which actually pays more. I know many non-Geos and non-Engineers who ended up with nearly equal paying or higher paying jobs, most of whom received 12-18+ months of severance. I also know a number of people who had to take small pay cuts, but still found new jobs. So I doubt the figure will be 85% who are jobless. Maybe 85% of individuals who are mostly marketable in Oil & Gas will be jobless, due to this downturn, but that's not a majority of Anadarko. Yes, we would have all loved for Oxy to mind their own business and not buy us (changing the future for all of us, and for most of Oxy very negatively), but this worked out fairly well for quite a few L-APC people, and not just the execs or those who were close to retirement.
@ifex You speak hard facts. the money is awesome but it was a buy off in disguise. I agree with you 100%. We lost our careers. Especially those of us over 50. The VSP looks nice at first but when you break it down it doesn’t touch what we would have made had we still had our jobs. I’m a 60 year old accountant. Where the hell am I going to go to make what I was making at APC? I’ll be lucky if I get a job at a bank making 50k. And two years will go by fast.
I received no where near five years salary. Just to offer a more balanced viewpoint, I received 12 months severance and about another 50k in all the “extras”. I AM GRATEFUL!! ......BUT....I am also out of a job. And when and if I get a job, I will not have the seniority I had when I took the VSP. I will have to start all over again with a new company and at my age that will be hard to do. In the long run, most of us who took the VSP will not be better off than If we could have just kept our jobs, salary, and benefits. It all seems like roses now because we all just got our lump sum, but ask us 12-24 months how things are looking. I have a feeling 85% of us will be jobless or have jobs making half what we were making at Anadarko. We’ll have spent most of our severance on living expenses, etc. I hate to be pessimistic but I hate seeing all the cheery side of this when that’s not the whole picture. Just wait until this oil bust is over, then see how all of us fared.
There were several elements to the VSP/COC payment: lump sum cash, bonus, 2019/20 PTO paid out, and vesting of restricted equity. Add all that up and I received a gross payment of just under 5.5 years of salary. Of course, the net amount received after taxes was substantially less.
On top of that I received an early lump sum payout of the legacy APC pension plan equal to slightly less than 5 years. Of course that amount ended up in an IRA account that won't be touched until after 59.5. As someone mentioned, this was a once in a lifetime chance for most and if you had the chance you were silly not to take it.
@uev+14fzzSn2 No one is going to make you whole for your worthless stock or realized losses if that’s what you’re asking...
@gdn: wow!!! That’s sounds like a great situation for LAPC. I’m bummed I missed out on that. How does Oxy’s current situation affect their stocks? Or if the company goes bankrupt? At least for those who didn’t cash out? Is there a clause or something to protect them?
@lai is absolutely correct! LAPC were very fortunate to have the VSP. I was with Anadarko for 10 years and got 12 months severance. I still have not found employment however.
Couple ways to look at it, about 3yrs base pay OR 2yrs base n bonuses. LTI vested immediately, remainder pto paid plus 2020 pto in full, 2019 bonus at 150pct. Once in a lifetime for common guy. Thanks uncle Al.
Apc had a document that said if they got purchased and certain things happened, like your job got eliminated, you would get money for the change of control. The amount of money you got depended on your salary and how long you had worked at apc. The most you could get was 2 years pay. Don’t remember what the least was. Instead of calling it a change of control, it was called vsp, voluntary severance package by Oxy. Different name but same thing. Everyone over 40 was offered the vsp. If you were under 40, the conditions for change of control would have to be met in order for you to get the “package”. A change of control document is not common. Anadarko employees were very lucky to have it.
To clarify, the reason it was so lucrative was because they had to compete against the COC package that most of the people would have potentially been eligible for anyway.
Can confirm. I was beyond thrilled to get my 18 months pay, but I mos def planned on getting a job within 6-8 months. That prospect now looks not good, so basically I’m screwed if I don’t find employment within the next year. The good ole days livin’it up at Anadarko seem so far away now.
Most received 12-18 months pay. A few got 2 years pay. It was a good package, but most would have preferred to have just stayed working for a good company for good pay. Not with Oxy, of course, so most are glad they took the package. But many of the 40-60 year olds were not in a position to retire. So while the immediate money is good, it will only last a year or two. And the job market is bleak, so it really kinda s—s all around.
I received 18 months of severance. I planned on retiring anyway within the next few years, so it made sense to me to take it. I didn’t really gain anything, but I just got to retire a little earlier. I’m grateful for that.
Well, I received the VSP and it was NOT 2 years of pay. Plus, I can’t find a job in this market, do not a golden ticket for me.
OP: I heard they got 2 years severance.
It was kind of like a Willie Wonka Golden Ticket.