I heard rumors that we will lose our severance and stock options if we are divested to another company. For example, I am in PPM and some company picks it up (along with the employees), then we are laid off after that.
I assume we lose our severance and stock options?
Scenario:
Originally, you are an employee of CA, and have been offered and taken a position at Broadcom as an engineer. Broadcom divests your enterprise product to a private equity firm that is located in Seattle. Said private equity firm requires you to relocate to Seattle to work for them. You decline, which also means that you quit. Broadcom will have no bearing on your clause at all anymore, because you will no longer be employed by them. You will be sold off. When you are sold off, you are not grandfathered into CA’s or Broadcom’s severance package.
Broadcom knows they do have to pay a lot of expenses (resources) a severance, but not everyone who is let go will get one. They will strategically eliminate severances to people by divesting enterprise products. I highly doubt Broadcom is just going to fork over as much money as possible to all terminated employees without looking into other avenues to explore.
I disagree with the previous poster in a way.
Yes, if you're divested you MAY lose your stock options and severance IF the new buyer lets you go. That's a risk.
If you voluntarily leave CA/Broadcom now you will DEFINITELY lose your stock options and severance. That's a guarantee.
If you're worried that you won't be able to find a job if you get laid off and want to be proactive, that's fine. I'm not that worried. The job market is hot and I've already got people knocking at my door. I'm holding out to see if I get a big fat check!
You should go now. CA tried to protect people in the past on the point, but the new people will not. If you are offered a job with the new employer you won’t get severance or equity cashed out. Broadcom has always followed this practice, ask anyone from Brocade. They divested most of that business.
It's possible. No guarantees. It depends on the terms of the sale and what the buyer agrees to. It is certainly a possibility.