How much in net worth would it take to leave COP? If the stock keeps climbing I may cash it all in an exit this place
10 replies (most recent on top)
How much net worth would it take? That’s the old “what’s your number?” question, which is a mix of how much you need to spend to live comfortably, how much you expect to get from Social Security, what your portfolio mix is, how old you are and so on. This is fully covered in the retirement section in personal finance in your local bookstore or library.
What hasn’t been discussed so far is how much COP stock you should have in your investment portfolio. As a basic principle concentrating your portfolio in any single stock is risky: having more than 10% of your nest egg in a single stock is chancing your arm. And putting it in your employer’s stock is doubly risky, because if things go south you can be without a job and with your retirement savings slashed - not a great place to be in if you’re in your mid 50s and starting to look hard at the “stay or go” question.
So if you’re using a 4% withdrawal rule of thumb, you might say a $2 million portfolio will yield $80,000 dollars a year (plug in your own growth assumptions), and make $200,000 of that COP stock. That’s a lot of 1 ratings unless you’re SGL 18 or above, and even then I’d argue that you should be treating RSUs as deferred income and selling them when they vest to stay diversified.
If COP stock doubles over a short period you go from a $2 million nest egg to a $2.2 million nest egg, leaving out any tax impacts and possibly a lower overall stock market price (oil shocks tend to lead to recessions). Would that be sufficient to tip the balance? Up to you.
If you do have a bigger weighting to COP (say 50%) then maybe you’re SGL 22+, or you have 100% faith in the company, which would be unusual for most people who comment here.
From a previous post: “If you get a 3, there is no possibility of stock unless you the target of diversity retention for diversity goals (I have heard this from a friend of mine who received some stock as a 15 with a perf rating of 3 and this is a black person).”
is this true? seems hard to believe they would give stock to a lower rated employee purely based on race but it seems like that’s the world we live in today.
Already beat you to it OP.
Bailed while I’m still able to enjoy life and live comfortably. This place is a sinking ship and life is too short to hang around waiting for the lifeboats to be launched.
I already sold all of my stock on the run up to $100, but I think I’m going to hold out for a 10% whistleblower award from the SEC like the person in the article below did. There’s no doubt in my mind there’s more that $150 million in fraud going on here. Smart Growth, Superior Returns, SPIRIT Values my a-s…
Washington D.C., March 11, 2022 —
The Securities and Exchange Commission today announced an award of about $14 million to a whistleblower who published an online report exposing an ongoing fraud. The whistleblower, who days later shared the same information with the SEC and was persistent in reaching out to the staff, prompted the opening of an investigation which resulted in a successful enforcement action and the return of millions of dollars to harmed investors.
"Whistleblowers can play a critical role in an investigation," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. "Here, the whistleblower posted a research report online outlining the allegations against the company and its officer and also, importantly, took expeditious steps to provide this information to the Commission. This case demonstrates the importance of whistleblowers reporting directly to the SEC so that the agency can promptly investigate allegations of wrongdoing."
The SEC has awarded approximately $1.2 billion to 249 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
You must keep working forever to support the left progressives' strategies. We need your taxes. We will impose a wealth tax. Don't even think about stopping. From each according to their abilities and to each according to their needs. How selfish to think you could stop supporting everyone else. Inflation, increasing taxes and the green new deal will keep you in your proper place for ever.
I am an SGL 15 and got stock this year due to my performance rating. As a 15, you can't get stock unless you are a 1 or 2 rating, and even that is discretionary (at least this is the case in my function). I have known a few 2s that didn't receive stock. If you get a 3, there is no possibility of stock unless you the target of diversity retention for diversity goals (I have heard this from a friend of mine who received some stock as a 15 with a perf rating of 3 and this is a black person).
Point being, for individual contributors < SGL 15, why do they not deserve stock like an 18? Are they any less important? We are all cogs in a wheel and that wheel can't turn if you don't perform the foundational tasks. Ask an 18 to perform a basic function and they probably wouldn't know how to any more. Keep everyone happy or your foundational core begins to erode quickly. We should be focusing some retention efforts on these lower levels because that is who we are losing to Tech. The SGL 18s and above are already tied so far to this company, they aren't in danger of leaving. Plus they have lost broad skills and probably can't function at another company any more.
Lots of folk are getting stock at SGL 15 and higher and have for years. Half of the SGL 18s get stock equal to about half of their salary. All the 19s get stock more than equal to half their salary. So stock isn’t limited to execs. But it is used selectively and not necessarily in the best interests of the stockholders. Rather, it has become a retention tool to attempt to achieve diversity goals. So yes, stock could easily fund retirement if you’re one of the chosen.
Who at COP is receiving enough stock to be able to quite working besides executives? My being an individual contributor of average to slightly above average performance have only received stock 2x in my 9 years at COP for a grand total of 500 shares. That is good money, but not enough to make it one week without a job.
I think that is an easy answer to our early career turnover problem. Load younger career people up with stock that has 3 year (or 5 year if possible) vest so they are always having to leave significant money on the table to leave the company. Make it harder to walk away from the company. Now that we don't have pensions, all ties to the company are transferrable (HSA, 401k).
It's called the 4% rule. 1 million will give you around 40k per year.
You should cash out and leave now, stock price is historical and you are useless.
Troll