Of course that totally ignores trends towards “golden parachutes” and other incentives and bonuses given to failed executives above middle management.
Those being let go by CSX are far from Golden Parachute territory.
No golden parachute for middle managers… only lead bricks.
I said above middle management.
Not too far. Silver parachute, then? These terms are pretty good:
“The laid off employees will be eligible for severance pay that equals two times their base salary, plus their target bonus and a prorated bonus payment. They also will be credited with three additional years of age and two additional years of service under the company pension plan.”
That’s a good severance package. With a payout like that there are probably some unhappy faces among those who weren’t let go…“please pick me… I’ve been a low flyer for years…totally useless…what’s a train anyway?..”…
Ulrich- good one! Funny.
That is a very good severance package. I would take that package all day every day…
Sort of a combination of a ‘One-Two Punch’ for those who have risen by “The Peter Principle”, and then fall because their ‘parachute’ had no shroud lines. [A failure to read small print in Employment Contract?] [:-^]
A relevant definition: " An Executive- One who is able to take a very long
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BaltACD
schlimm
greyhounds
rockymidlandrr
Now management gets to experience what all the other crafts have over the past few years- day-to-day wondering if you have a job or not.You ain’t never been in management, so I take it.
I recall the day the VP Intermodal got fired with no notice, but…
There was also the day the six sales territories were downsized to three sales territories. They called three sales territory managers up to Chicago without telling them why. The “Why” was that they were fired. On the spot. I remember one of them crying.
This is the way she goes. If you can’t stand the heat get out of the kitchen. It’s happened to me. Not at the railroad, I quit there. But it’s part of life and people have to deal with it.
Of course that totally ignores trends towards “golden parachutes” and other incentives and bonuses given to failed executives above middle management.
Those being let go by CSX are far from Golden Parachute territory.
Sort of a combination of a ‘One-Two Punch’ for those who have risen by “The Peter Principle”, and then
I know quite a few.
Buyouts, which this is, are not cheap. Do it on the cheap and you generate many enemies. But it lets the accountants show it as a ‘extraordinary’ one time charge against income, no as a continuing employee with resultant fringe benefit liability.
Those who view annual reports tend to ‘gloss over’ extraordinary charges as the cause is explained in a footnote. Normal employment expenses are always a continuing drain on income.
Ive never gotten anything quite that generous. I was happy with what I did get and I was still marketable.
Randy
OK. Good for them. But we all know that the norm for most employees has traditionally been two months severance pay, at best.
It looks like they are being offered a bridge to Medicare also. Added three years to age and months of service. I assume most of the affected employees are age 59-62.
Two years wages will go fast if they have to buy insurance.
If they’re older and close to retirement then it would make more sense to let natural attrition take its course. One thousand managers is alot of people… one has to wonder what is going on there when all of these people are suddenly deemed superfluous. And the timing is interesting too… the war on coal is supposedly over, Trump is cutting corporate taxes and the economy is poised to come back stronger than ever…My guess is this is all a preamble to EH coming on board… a bit of putting the cart in front of the horse so that when he finally does arrive his plan is already under way.
Or to be able to say that he’s not now needed?
Or to have the $175 million in compensation to give him as a ‘superstar’? [}:)]
I doubt that would satisfy him. It’s become an ego thing that he needs to prove himself one more time before taking the filthy lucre and hitting the bricks. Seems to be the typical mindset of corporate execs these days; destroy the company and get a huge bonus for doing so. Pure unadulterated greed.
There was speculation that this was done purposely before EHH took over. Not because they wanted to put the cart before the horse or get the ball rolling. Rather, that Mr. Ward wanted to reward his people with a better severance package than they were likely to get from EHH once he was in charge.
Jeff
Hasn’t he already said that if he doesn’t get the $84 million to ‘make him whole’ with his CP non-compete clause, he’ll walk? And that he expects to get it from the stockholders, not Mantle Ridge? There’s half of it right there…