Thread regarding U.S. Bank layoffs

I mean there’s a bunch of forces at work here.

Yes, we will shift to more incentive vs base, partly because workers have little leverage, partly because US Bank is way off market in terms of the comp spread between employees.

Yes, things will get better for a time if we run into another hot job market like 2021, but we’re not there now.

No, you shouldn’t get your hopes up long-run. Our industry is in decline. We have competitors at us from all sides. Commercial bank employment is at the same levels it was at 30 years ago, and has declined sharply since 2023. We pay out 75% of our net income back to shareholders, in line with companies in the early phase of extinction. The future is likely to be one of ever-fewer bank employees. We don’t have good prospects for leverage.

@b9 100% accurate!

@b1 this was one of the reasons they shifted remote too. Talent was getting poached for better working arrangements. We all saw how that worked out.

The pendulum swings back and forth. Eventually when it's a worker's market we'll see shifts again in working arrangements and salaries. Then it'll swing back the other way and they'll axe all the expensive and remote people and back and forth it goes.

I am a peon and lost our annual bonus option a few years ago. Then they move remote workers to a standard pay range regardless of location. Now they take a way merit even if you have a meaningful performance. Such a slap in the face. I pray the economy gets better so we can see the shift of talent leaving and a readjustment. Right now they have us all by the you know what.

Until we see other companies poaching our employees with higher wages and bonuses to a point that it affects key players, they will keep compensation at the same baseline our competitors play at. I’ve been here long enough to see what happens when then market turns and employees are flocking (sometimes full teams) to a competitor who is ready to pay more. Only then will we suddenly go, “oh, we are going to compete compensation wise” again.

@at 1000% this!!!! Look across the corporate, and government, landscape and you’d think they were all made from the same mold.

This is the new normal. The job market su-ks and they know it. And unfortunately with the leadership we have in the white house, and the way things are going lately, I don't see the job market ever getting better for a long time. Too much uncertainty.

I think people are starting to finally realize that we were the frogs in the boiling water and now we're really feeling it. This stuff started back with Jack Welch and that CEO mentality.

Just look at how people like Elon musk and Jeff bezos think about employees. We are cattle to them. They do not care.

The future is breadcrumbs for the workers while the MC eats caviar. Middle management are simply propagandists for the MC telling employees to not believe what their eyes and ears are telling them

You can give yourself a raise by working less for the same amount of money

It’s a pay cut.

It’s gross. So many people received no merit this year even though they performed well. The worst part is some are not sniffing much LTI either in lower grades. Gunjan is sadistic woman.

@ab depends on the date of layoff and which vesting period

@aa they won’t lean heavier in terms of more money. They will simply use bonus and LTI as the driving comp. So continue to expect years of 90-100% bonus (unless it was a notable down year). The days of merit over 2-3% are over.

They are actually not freed of the obligation to pay out LTI upon laying someone off, unless something in the severance agreement has changed.

They didnt even lean on heavier bonuses this year though. Comp was way below expectations after having rEcOrD bReAkInG profits shown to us every month

@OP yep, 1 time payment is optimal for the Bank. The merit increases have always been trash and will continue to be.