If Shell decided to pay out a $1 million severance to 1000 staff members per year to voluntarily leave Shell, would you take it? It would cost $1 billion per year. It would only be available to US/CA/UK/NL since they are trying to reduce their footprint in those countries. For tax purposes, each staff member would get the $1 million over a 10 year period. Only staff that has been with Shell for 10+ years would be eligible.
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If Shell opened up the voluntary severance and started lowering the severance package, would you take it?
No. Don't want to kick off another round of inflation! Right Gretch?
fork found in kitchen
The issue is that most of us expect to be given a severance package out at some point and kind of expect one to be offered every three years.
If you make it to JG2 with 20+ years and age 50+ that package (PSP, severance, annual bonus, banked vacation) is about $600K ($800k if you locked in retirement insurance... sorry that benefit is discontinued for new hires). So, that number isn't too tantalizing compared to waiting three more years when you might pull a JG1 out at the end and do even better. It is pretty likely that with whatever salary + last year's bonus you get in your last year it is gonna be kind of close to that. For Genxer's and Boomers at JG2 or higher,waiting 3 years for the next layoff ups your pension by 4.8% of your salary (25k per year) or for the APF you'd be getting an additional 48% of your salary in a lump sum distribution (250K in lump sum).
It only really matters if you are otherwise retirement ready, but if you include the salary from working 3 more years it isn't the best choice. Unless you're already ready to say F-U and leave.
Taking that is a good decision for a new hire or low job grade, but a poor choice for someone near retirement.
Only if the package included a cat, a pinkie ring and a mini-me.
Without any hesitation
Uh duh