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A Slight Delay in eR
Old 03-01-2005, 04:59 PM   #1
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A Slight Delay in eR

In December of 2004 I informed my boss I was thinking about retiring the end of April. Said I would give formal notice once I got closer to exit time. Within days of that conversation, a sale of our parent company was announced, and what were formerly worthless stock options were to be worth almost one year's salary once the sale was completed. (Must be living right! )

The sale was to take place in February, but problems with regulatory approval in the EU delayed the closing two weeks, then another two weeks. Now the sale is scheduled to take place the first of April. Still four weeks from my retirement date, but getting a little close for comfort since if I leave before the sale is closed I forfiet all options and end up with zip. So today I go to see the boss to say I'm planning on delaying giving formal notice until the sale is final and my options pay off.

Before I can bring up the subject I'm asked if my May 1 retirement date is firm. Fearing the worst, I ask why. The response was "Would you consider delaying your retirement until the end of June if we agree to pay you through July?" (Vision-impaired swine locating tree seeds. ) I said I would think it over and get back to him.

As fortunate as all this is, it does have a down side. After looking forward to retiring for years, this is a bit like running a marathon and just before reaching the finish line being asked if I would mind if the race was lengthened a few hundred yards. (I use the term "all these years" because I am 58. Thus the small "e" in "eR".)

I'm considering offering a compromise. I will agree to work through the end of May (4 additional weeks) for 6 weeks of pay. This should allow time for the completion of the sale and option payout. I do not want to work past that date as we booked a cruise the first week of June to celebrate my retirement. The thought of returning to work the day after that cruise is beyond depressing. :P

Wish me luck.

REW
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Re: A Slight Delay in eR
Old 03-01-2005, 05:19 PM   #2
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Re: A Slight Delay in eR

Good luck...

Only you can judge the regulatory risk in your options payout; and on the surface of it your statement that June 30 "...should allow time for the completion of the sale..." gives pause. A lot can happen in the regulatory arena between now and April 1. Is it possible you could hedge this options payout risk in your negotiations over exit date?

Ed
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Re: A Slight Delay in eR
Old 03-01-2005, 05:38 PM   #3
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Re: A Slight Delay in eR

Quote:
Is it possible you could hedge this options payout risk in your negotiations over exit date?
This will definitely be included in my discussion tomorrow.

REW
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Re: A Slight Delay in eR
Old 03-03-2005, 03:30 AM   #4
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Re: A Slight Delay in eR

REW,

I'm in a very similar situation. In October I notified my customers that I would be closing the business and retiring 12/31. About 90% of them went away. The other 10% refuse to go away. Calling, in some cases pleading for services.

I can't ignore these guys. But its up to me a some point to declare enough is enough. With spring just around the corner, its time to start sharpening the fishing hooks. Think carolina rig with a cell phone as a sinker.

Rome wasen't built in a day, nor dismantled.


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Re: A Slight Delay in eR
Old 03-03-2005, 05:11 AM   #5
 
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Re: A Slight Delay in eR

Well, I shut down my manufacturing co. in 1993.
However, I tried to fill all the orders I could before I closed. Then I sold some of the remaining inventory
to my former customers and licensed several other companies to produce our proprietary products. Thus,
my customers did not suffer much and were insured of a comtinued flow of materials with minimal scrambling on their part.

JG
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Re: A Slight Delay in eR
Old 03-03-2005, 09:43 AM   #6
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Re: A Slight Delay in eR

I ended up staying a little longer than I had planned, boss asked me to wrap up one little task force before I bugged out. He was a smart guy...that task force was never going to solve due to political problems and infighting. Unless the guy leading it is politically bulletproof and doesnt care about the long term ramifications to his career.

I thoroughly enjoyed the extended stay. Just like the last week of school before summer vacation. A long...long...long summer vacation.
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Re: A Slight Delay in eR
Old 03-04-2005, 04:10 PM   #7
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Re: A Slight Delay in eR

Update:

The boss agreed to the compromise and I will stay a minimum of four more weeks past my original retirement date and get paid "time and a half". I agreed to review the situation in a month and consider delaying for an additional month. If the sale date is still in doubt, I may want the additional time for insurance. If the sale closes a month from now as planned, then I'm out of there the end of May.

Good advice, TH...I'm going to treat those added four weeks like the last week before summer vacation at school. Wonder if I can take field trips and watch movies?

REW
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Re: A Slight Delay in eR
Old 03-05-2005, 10:39 AM   #8
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Re: A Slight Delay in eR

Good luck. It seems that it will work our for you no matter what will happen. If you have to postpone your retirement date, you will receive overtime pay.
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Re: A Slight Delay in eR
Old 03-05-2005, 11:03 AM   #9
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Re: A Slight Delay in eR

Quote:
Wonder if I can take field trips and watch movies?
With a DVD equipped laptop and headphones, movies are a snap. If you consider a visit to the cafeteria and the mens room a field trip, thats also a yes...
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