How likely is a salary cut on top of layoffs? Is there any precedent for this at EM?
22 replies (most recent on top)
@rsyn+17vP0j9J I'm already at 27% salary reduction with the savings plan cut and cost of living cut. Add in a couple of years with no raises to keep up with inflation and I'll be at 35% salary reduction as you suggest.
@rsyn+17vP0j9J So much anger. Take a few deep breaths and go for a walk.
Best thing to do is to cut all U.S. based employee salaries to 35% of what they currently are. Then fire 60% of the useless employees.
Mr. Darren Woods please be brutal in trimming actually hacking) the fat. EM employees are greedy addicts
Thanks, but no thanks Darren @rqzc+17vP0j9J
Would you like a 100% pay reduction?
Depends where you are. If you are in a part of the US that was receiving a cost of living adjustment yes. They have already cut them. Removal of a 20% cost of living adjustment is a pretty big hit when my house payment and bills don't go down 20% magically.
Just wondering, isn’t being laid off a salary reduction of say 100%?
Yes, you will see a salary reduction in December.
I would like to clarify the suggestion to reduce renumeration in the so-called “Low cost” countries like KL. In USD, the cost to EM is considered Low ( and that’s why KLTC was set). There are good engineers whose value add, what we call Productivity, is any time higher than anywhere else. However in the local terms, with high inflation, the renumeration is not high. I would like to invite whoever suggested this to come and work in KL under the local terms and he will understand the situation very well. One should not make such comment, if he or she is not familiar with the local situation.
Sounds like someone has no clue how RSU affect compensation when they vest. EM will report Executive compensation in March. Past reports are online, it is very transparent. But most people on this Board are id–ts and don't know how to review SEC records for corporate insiders like the top 5 management. It is all reported and available
RSU value really hasn’t changed, dividend per share is the same (just a 10% yield). I would enjoy getting 10% of my “restricted” shares up front each year. So saving the dividend seems like it would save executive compensation? Something we should all be striving to get ourselves then we will be happy to work to save the dividend
Such exercise should also happen in the low cost countries - e.g. KL folks are grossly overpaid (in local currency) for the value they deliver. All cuts matter!
Also ALL senior executives compensation will be down by at least 40%...since the value of restricted stock has plummeted because of lower stock price. Top 5 executives get over 50% of compensaton from stock and 20% from cash bonus. I expect DW to drop below 15 mill from over 23 Million. Next level down will drop from 10 million to 6 million. Presidents of functional companies will drop from $7 million to $4 milion. PLUS THEY LOSE The 7% MATCH. Stop B–chING, management will take a BIG HIT in compensation. Example: Darren got 180000 share of RSU. At 75/sh this was worth 13.5 milion, but he loses 7.2 million at 35/sh. Plus he losses cash bonus of over 2 million and the 7% match. PLUS this year he may get WAY LESS than 180000 RSU also because the cash shortfall may restrict buying back shares to award as RSU. There is a BIG DOWNSIDE to VARIABLE PAY. Most CVX employees will lose their 15% bonus, but they get their 8% match. Indpendents will fire 40% and cut comp on everyone else. XOM needs to trim MORE.
In past, EM preferred to cut the bottom 20% than to make the remaining 80% suffer with pay cuts. Some may be de-classified but usually pay is not cut. (PS. It may be good to be declassified, because you may rank higher in a lower Rank group and avoid a PIP and sometimes your salary actually goes up because of overlapping curves). It is always better tp be a highly ranke CL 29 than a poorly ranked Executive). Salaries and promotions will slow down when competitor salary surveys are completed & benefit surveys completed. Once bottom 20% are gone, everyone re-ranks lower (a 50 RG becomes a 40, an 80 becomes a 64)...A 20 becomes next year's PIP, thus everyone drops to a lower salary curve...and everyone moves to a slower promotion matrix. In past, we frequently went 3 or 4 years with only 1% pay raises and promotions pushed out several years. This happened before and will happen again. Many executives will lose bonus and restricted stock, bottom quintile executives lose the incentives (that is a big pay cut). VERY PREDICTABLE
No way! If so, ny WFH hour will be directly correlated to the amount of hours I work. I might even start moonlighting!
Stupid people amaze me. If I can I’ll cast a spell because this guy can spell.
The only reasonable thing to do is to cut all salaries in half. That should the starting point and then the rest of the cost saving measures should be add onto this baseline.
Mr. Darren Woods please note.
But DW is so underpaid that no one else is willing to work for so little.
A hit on benefits, yes. Salary itself, no but in real terms, yes because you're not going to get a rise any time soon. Examples everywhere. Australia had a pension dilution, the UK changed their Scheme to new entrants, the US 401 scheme was hit. Meanwhile Darren's package topped 23 million USD last year (up 25% for his sterling performance) so it's not all bad, right?
Precedents are out the window in a global pandemic. Expect there to me no meaningful salary increases for quite sometime...
Well, the removal of the 401(k) match was effectively a salary cut, for most people
No. Salary freezes have already been announced. Salary freeze + 401 match removed + next round of PIPs + the layoffs resulting from the consultant reviews should get us through the downturn.
Not for leaders because they need motivation to save the dividend.