What would a legacy OXY employee be entitled to if laid off before the company was acquired (assuming no bankrupcy)
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Worth noting - In Bankruptcy, CoC claim would come before any equity, so the $10B preferred shares for Berkshire would be behind CoC claims. The common share price has treated that much like debt when valuing the common share equity value since the preferred shares do not adjust down with the common share price. Good chance the value of all assets is greater than the value of the debt alone if they were sold in a $35 plus environment.
Yes, it applies. If you lose your job for any reason other than firing for cause within 3 years of the acquisition, you get your CoC. If that wasn't the case, companies would just do a "layoff" to get rid of people rather than paying the CoC. You are covered if OXY lays you off, if OXY sells you and you get laid off, or if OXY sells all of their assets and lays everyone off. Your biggest risk is that if OXY goes bankrupt, your CoC claims are behind almost everyone creditor and so you are not likely to get paid.
@uco IF you look at the leaving oxy section of the HR site you find a link to the Oxy Severance Plan that has existed. It was recently updated to include the enhanced severance section. So, now there is the severance plan and the change of control. Former covers you from layoffs and the latter from a buyout.
Typically a change of control is when your company is purchased, not when your own company lays you off. “change of control” indicates the company you work for is no longer the company you work for. You would now be working for the purchaser of your company. If a company lays you off, the same company is in charge, no changes in ownership were made.
Oxy has a COC policy for its people if they were to get bought out? Where is this posted?
Good Reason will mean the occurrence of one or more of the following:
(i) a material diminution in the Participant’s Base Salary;
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you will be eligible for Separation Benefits if a Change in Control occurs and, within two years thereafter, your employment with Oxy or its Participating Subsidiary is terminated by Oxy or a Participating Subsidiary without Cause or by you for Good Reason.
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Any outstanding Oxy long-term incentive awards that you hold will immediately vest,
Only applies if the this terrible company is acquired and u get laid off. Oxy has no money to pay severance or they would have done that vs cutting pay. U LOxy folks should hope to be acquired. That’s what Lapc folks pray for everyday.
Well damn what is oxys policy for layoffs outside of the 2 months of warn.
No; does not apply to lay-offs. It's not that kind of severance plan.