Merry Christmas all. As your gift, the company now has an official severance package when bcom buys us.
You must believe what they say, no coincidence there at all with that new position.
20 replies (most recent on top)
Octane is going to make sure this CIC severance doesn't jeopardize the deal.
CIC comes, CIC goes, it's that easy. In the mean time, you worker 🐝 keep up the work.
I agree the premise of the CIC severance package is to make Qualcomm more expensive to acquire by Broadcom. While the agreement does cover low level engineers (see https://content.edgar-online.com/edgar_conv_img/2017/12/22/0001104659-17-074752_G285836BCI001.JPG), they are much cheaper to eliminate than principals. Instead of paying 26+ weeks (i.e. 6+ months) for a principal at a much higher salary, they only have to pay 2 months for the low level guy. So now Broadcom is incentivized to get rid of swathes of low level engineers.
If you get layed off, it is up to you to prove that it was due to CIC. Good luck with that!
Also, this is not legally binding in any way. Other companies have tried this before.
Keep in mind that the CIC Severance doesn't extend "indefinitely" in time and it only applies to terminations which are directly related to Chance in Control.
Great parachute packages for the current top executives!
Hey low level engineer, sorry to tell you this cake is not for you!
QCOM ALREADY SOLD!!!!!!!!!!!!!!!!!! WAKE UP !!!!
Enhanced Severance During a Change in Control (CIC)
The Severance CIC was initiated by the acquirer, HOCK TAN!!!!
In today’s highly active merger and acquisition (M&A) arena, many "acquirers" are recognizing that the period around a deal closing can be very challenging for employees, and also that stability and employee engagement are often key to M&A success. To stabilize the workforce, many employers offer enhanced severance benefits to individuals who are terminated as a result of a change in control (CIC). It can not only help employees feel better about their future under any scenario, but also encourage crucial talent to stay with the new organization.
Most CIC arrangements define change in control (CIC) to include the following categories:
1) Merger
2) Hostile Takeover (share acquisition)
3) Hostile Takeover (board takeover)
Interesting that all 3 apply to QCOM !!!
The primary purpose for CIC arrangements is to keep senior executives focused on pursuing all corporate transaction activity that is in the best interests of shareholders regardless of whether those transactions may result in their own job loss.
SOURCE: http://www.meridiancp.com/images/uploads/20_CIC_Severance_Arrangements.pdf
Agree this is a smart move. The guy who said this is not legally binding doesn't know jack. It's a commitment from the CEO and the board will vote on it. HT can't just wave his hands and change it.
Does the CIC say anything about the WFH policy or accrued days?
Everybody gets cardboard parachute
@ bpd
You have no idea of what you are speaking. This is not a-typical for a CIC. It is a contract with current employees and if Broadcom tries to reverse it they will have a class action suit from the employees or a mass exodus...which will greatly impact the value of the new asset.. they won't touch this.
What is CIC?
This is not a bad thing. It protects the downside for employees and everyone can now calculate where they stand in a worst-case scenario. It is a good deal, but not so crazy that it's not defensible to shareholders. It will stop some of the unwanted attrition due to the uncertainty of Broadcom's plans. I actually give the board some credit for doing this...I am not a cheerleader, but it's a good package.
This has no legal ground once AVGO acquires QCOM, an easy challenge to HT to overcome and lay off %30 of QCOM as he already promised to his investors.
The cake is served already
Can't this be reversed and nullified once HT takes over?
You dopes got it wrong again. Management is doing this to make it more expensive to aquire Q and lay off folks. BC severance s---s.
So miserable that the only think they can offer now is the certainty of a severance package
Hock Tan can offer up to $110 share, he already gathered all investors to take Q over in a ballistic manner
does this implies that the deal is already done, and this is the ripple effect of the deal? Very scary though:((
Very Sad scary day for every single Qualcomm employee and their family .
Question is why today??? why so early? Vote is not until March.
A lot of worries lay ahead....
It is really suspicious, we all know that Hock Tan gives 2-week total severance for folks with 17-year tenure in previous companies he acquired. We don't know now who initiated this action, it is unclear if this was initiated by QCOM or AVGO. Either case it is a fire they are trying to contain, like our recent wild fires, folks are leaving Q at light speed. I blame solely Q to let the company culture to degrade at current lowest level, to continue pursuing outsourcing projects oversea, to allow despotism and corrupted hiring practices.
Too little too late
Let's get the hell out of this depressive environment in 2018.
Happy Holidays!!!!