oldguy2014
Confused about dryer sheets
- Joined
- Sep 17, 2014
- Messages
- 1
Hi. I've been a lurker for a couple of years, but this is my first post. I've gained a lot of insight from reading this forum, and I thought my FIRE plans were well on track. But, my plans have recently hit a potential bump in the road. I realize now that things can change pretty fast. Hoping that someone out there might have some good advice.
About three years ago, I was approached by Megacorp 2 which was in the process of recruiting a Major Capital Projects Team to take on a new grass roots mega-project (i.e., a multi-billion dollar project). Megacorp 2 is a well established, but mid-sized company in their industry. However, they traditionally have bought into or acquired established operations and thus did not have the staff capable of taking on the execution of a new project from the conceptual / front end stage. Thus, they were out in the market recruiting project professionals from other companies in the industry.
At the time, I closing in on FI after a long career with with Megacorp 1, but was very interested in the opportunity and Megacorp 2's offer. After a few months of discussions / negotiations, I decided to take early retirement from Megacorp 1 and join Megacorp 2.
The offer from Magacorp 2 involved a base salary / bonus / 401K / retirement plan that was only slightly more than I was receiving at Megacorp 1. On this basis alone, I would have never made the switch. What made the offer attractive, was their stock / equity plan. On top of base / bonus / 401K / retirement, they provided annual stock grants that equaled a substantial portion of my base pay. These stock grants vested at the rate of 1/3 per year, with full vesting after three years.
At the time I joined Megacorp 2, the project was expected to last about five years to completion. This fit well with my timeline for eventual full retirement, and I needed five years to fully vest in their 401K and retirement plans. As long as I stayed for at least five years, I thought I would be making a wise financial decision. If I were to RE before five years, it would not have made sense to switch.
After my arrival at Megacorp 2, the project began to encounter some "issues" which started to dramatically increase projected costs and schedules. This trend continued and eventually Megacorp 2 decided that the project was too costly and the anticipated revenues were too far down the road for a company of its size. Megacorp 2 recently decided to divest itself of the project as soon as it can find a buyer (assumed to be one of the major companies in our industry).
I think it is likely that Megacorp 2 will lay me off (as well as my fellow project members who are in the same situation) as soon as the sale is completed. We have inquired as to whether the company will provide us with a "package" in the event that they let us go due to their decision to exit the project. Thus far, they have only told us that no decision has been made, but they continue to stress that there is no obligation for the company to do anything other than pay us our salary up to the date of termination.
This has me extremely worried that they intend to do nothing for us. I currently have a substantial amount of unvested stock grants, 401K matching contributions and retirement plan contributions. I stand to forfeit all of these unvested amounts if I am terminated without a package. I, and others in the same situation, have made it clear to our management that we made the decision to leave our prior positions based on the full compensation package we were offered by Megacorp 2. If we are forced to forfeit these amounts, it would in effect be a major retroactive pay cut, based solely on their decision to exit the project. I told our management that, at a minimum, I would expect the company to fully vest me in all of these funds in the event of a layoff.
I'm not sure what, if anything, I can do at this point. In my opinion, the company has a moral obligation to keep us whole on the unvested amounts, but not a legal one. Has anyone ever been in a similar situation? I'm afraid that not only will I have to go look for another job (I thought this would be my last), but it could mean that I will have to work several years later than I ever planned.
About three years ago, I was approached by Megacorp 2 which was in the process of recruiting a Major Capital Projects Team to take on a new grass roots mega-project (i.e., a multi-billion dollar project). Megacorp 2 is a well established, but mid-sized company in their industry. However, they traditionally have bought into or acquired established operations and thus did not have the staff capable of taking on the execution of a new project from the conceptual / front end stage. Thus, they were out in the market recruiting project professionals from other companies in the industry.
At the time, I closing in on FI after a long career with with Megacorp 1, but was very interested in the opportunity and Megacorp 2's offer. After a few months of discussions / negotiations, I decided to take early retirement from Megacorp 1 and join Megacorp 2.
The offer from Magacorp 2 involved a base salary / bonus / 401K / retirement plan that was only slightly more than I was receiving at Megacorp 1. On this basis alone, I would have never made the switch. What made the offer attractive, was their stock / equity plan. On top of base / bonus / 401K / retirement, they provided annual stock grants that equaled a substantial portion of my base pay. These stock grants vested at the rate of 1/3 per year, with full vesting after three years.
At the time I joined Megacorp 2, the project was expected to last about five years to completion. This fit well with my timeline for eventual full retirement, and I needed five years to fully vest in their 401K and retirement plans. As long as I stayed for at least five years, I thought I would be making a wise financial decision. If I were to RE before five years, it would not have made sense to switch.
After my arrival at Megacorp 2, the project began to encounter some "issues" which started to dramatically increase projected costs and schedules. This trend continued and eventually Megacorp 2 decided that the project was too costly and the anticipated revenues were too far down the road for a company of its size. Megacorp 2 recently decided to divest itself of the project as soon as it can find a buyer (assumed to be one of the major companies in our industry).
I think it is likely that Megacorp 2 will lay me off (as well as my fellow project members who are in the same situation) as soon as the sale is completed. We have inquired as to whether the company will provide us with a "package" in the event that they let us go due to their decision to exit the project. Thus far, they have only told us that no decision has been made, but they continue to stress that there is no obligation for the company to do anything other than pay us our salary up to the date of termination.
This has me extremely worried that they intend to do nothing for us. I currently have a substantial amount of unvested stock grants, 401K matching contributions and retirement plan contributions. I stand to forfeit all of these unvested amounts if I am terminated without a package. I, and others in the same situation, have made it clear to our management that we made the decision to leave our prior positions based on the full compensation package we were offered by Megacorp 2. If we are forced to forfeit these amounts, it would in effect be a major retroactive pay cut, based solely on their decision to exit the project. I told our management that, at a minimum, I would expect the company to fully vest me in all of these funds in the event of a layoff.
I'm not sure what, if anything, I can do at this point. In my opinion, the company has a moral obligation to keep us whole on the unvested amounts, but not a legal one. Has anyone ever been in a similar situation? I'm afraid that not only will I have to go look for another job (I thought this would be my last), but it could mean that I will have to work several years later than I ever planned.