n012944 schlimm I wonder how many folks have received or know someone who received such a generous package? "severance pay that equals two times their base salary plus......" I know quite a few.
schlimm I wonder how many folks have received or know someone who received such a generous package? "severance pay that equals two times their base salary plus......"
I wonder how many folks have received or know someone who received such a generous package? "severance pay that equals two times their base salary plus......"
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.
Never too old to have a happy childhood!
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.
C&NW, CA&E, MILW, CGW and IC fan
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.
Ulrich..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.
Thanks to Chris / CopCarSS for my avatar.
Murphy Siding Ulrich Or to be able to say that he's not now needed?
Ulrich
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'?
RMEOr to have the $175 million in compensation to give him as a 'superstar'? Devil
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.
Norm
Ulrich 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.
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
Norm48327 RME I doubt that would satisfy him.
RME
I doubt that would satisfy him.
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...
Given Mantle Ridge's demand to be treated like a majority stockholder, even though they own only a small portion of the stock, I'd say that it's not CSX who wants EHH, it's Mantle Ridge who wants EHH, and they certainly don't want to pay for him out of their own pocket...
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
tree68 Given Mantle Ridge's demand to be treated like a majority stockholder, even though they own only a small portion of the stock, I'd say that it's not CSX who wants EHH, it's Mantle Ridge who wants EHH, and they certainly don't want to pay for him out of their own pocket...
FTA:"...Harrison will receive a base salary of $2.2 million and an annual target bonus opportunity of up to $2.8 million, with that amount as a guaranteed bonus this year, CSX said in a regulatory filing. Harrison also was granted options on 9 million shares of CSX stock at $49.79 – a deal worth $448 million at the current price. The option will vest in equal annual installments over Harrison’s four-year contract. Half the option will be based on continued employment, with the other half hinging on the achievement of performance targets. At the CSX annual meeting, shareholders will vote on whether to reimburse Mantle Ridge and Harrison for the $84 million in compensation and benefits Harrison left on the table by leaving five months early from the top job at Canadian Pacific. If shareholders approve the “make-whole” arrangement, CSX will pay Mantle Ridge $55 million and later would pay Harrison $29 million and pick up the tab for taxes on the deal...
[The article further adds:] "...CSX’s corporate bylaws were amended to separate the roles of CEO and chairman of the board. In addition, the board’s mandatory retirement age of 75 was eased in a nod to the 72-year-old Harrison. Mantle Ridge, which currently holds just under 5 percent of CSX’s stock, must retain a 2 percent stake in the company if founder Paul Hilal is to retain his seat on the board. Hilal is the board’s vice chairman through the 2018 annual meeting. Mantle Ridge also agreed to vote in favor of all nominees to the CSX board in its proxy statement for the upcoming annual meeting..."
Apparently, Mantle Ridge and EHH were pretty confident that EHH was a 'shoe- in' for the CSX job(?) which is why he walked away from the milti-million 'Compensation package' on exiting CPR(?)
With just a 5% holding of CSX stock [currently] and as it was noted in previous articles Mantle Ridge 'started' its' 'run' at CSX with an original holding of around 2%. I am not sure what that 'holding would be in cash value$$$$, but it certainly, seemed to be a pretty good reading of what it would take for the Management Team at CSX to Fold'; it seems to beg the question of what information Mantle Ridge and EHH 'had on' CSX?
At least Balt ACD got a control point named after him. on retiring !
Talk about perfect timing! IMHO!
samfp1943At least Balt ACD got a control point named after him. on retiring ! Talk about perfect timing! IMHO!
Not excatly a Control Point - a 2 mile Yard Limit.
Yard Limit is on the former South Baltimore Industrial Track. Track was designated 'Other Than Main Track' by the Division. However, once it got that designation MofW could not be protected on the track as Authorities only apply to Main Tracks and Yard Limits. Thus to be able to give MofW protection on this segment of track a Yard Limit had to be created - I was just lucky enough to be retiring at the appropriate time. Regardless of the reasons behind it, I'll take it - on behalf of my Grandfather's 47+ years, my Father's 37+ years and my 51+ years.
[quote user="BaltACD"]Regardless of the reasons behind it, I'll take it - on behalf of my Grandfather's 47+ years, my Father's 37+ years and my 51+ years.[/quote
135+ years of service and wisdom! Amazing! And that institutional wisdom is often lost or even devalued in today's short-term approach.
[quote user="schlimm"]
[/quote] ABSOLUTLY! What a great legacy!
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