Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
ER at 52+/- from corporations: Why?
Old 11-13-2007, 12:15 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
ER at 52+/- from corporations: Why?

Since I worked for myself, I really do not know the answer to this question. Can someone who was a corporate animal enlighten me?
I know 2 people who were retired by their corporations at 52, which, I assume, is early retirement. Both had "good" management jobs. They did not ask to be retired, but were told they were retiring early.
Why is this? Why do corporations normally early retire someone? I would think that if they were doing a bang-up job, they would want to keep that person on the payroll or am I being naive?
I really do not know the answer, and have been wondering. Is this the norm in huge corporations?
__________________

__________________
Orchidflower is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-13-2007, 12:17 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Orchidflower View Post
Since I worked for myself, I really do not know the answer to this question. Can someone who was a corporate animal enlighten me?
I know 2 people who were retired by their corporations at 52, which, I assume, is early retirement. Both had "good" management jobs. They did not ask to be retired, but were told they were retiring early.
Why is this? Why do corporations normally early retire someone? I would think that if they were doing a bang-up job, they would want to keep that person on the payroll or am I being naive?
I really do not know the answer, and have been wondering. Is this the norm in huge corporations?
Easy..they think they can hire a "young buck or doe" for HALF or LESS of their compensation package, to bring "fresh ideas" and a "new mindset", including the willingness to work 16 hours a day for months at a time without complaining...........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 11-13-2007, 12:18 PM   #3
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 831
Quote:
Originally Posted by Orchidflower View Post
Since I worked for myself, I really do not know the answer to this question. Can someone who was a corporate animal enlighten me?
I know 2 people who were retired by their corporations at 52, which, I assume, is early retirement. Both had "good" management jobs. They did not ask to be retired, but were told they were retiring early.
Why is this? Why do corporations normally early retire someone? I would think that if they were doing a bang-up job, they would want to keep that person on the payroll or am I being naive?
I really do not know the answer, and have been wondering. Is this the norm in huge corporations?
Maybe they weren't doing a bangup job, but were in the way. Maybe there weren'g doing a bad enough job to be fired, so they were "promoted" out, to get them out of the way of the direction the company wanted to take.
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
RetireeRobert is offline   Reply With Quote
Old 11-13-2007, 12:22 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
A lot of times it has nothing to do with the individual's performance (or lack thereof). Companies whack middle management jobs regularly, when times are bad or when profits simply aren't high enough to max out senior management's bonus pool. They also seem to whack people in their 50s and 60s pretty frequently because: 1) they are paid relatively well, 2) they up the company's health insurance and pension costs more than yunguns, and 3) age discrimination (but don't tell anyone about taht last one).
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-13-2007, 05:41 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
I'm no naive innocent Pollyanna, but what a crap sandwich these corporations sound like. If I worked for one--and they "retired" me at 52--I'd be p.o.'d. What a number this has to do on one's ego, I would suspect.
When I was a lowly secretary before college, I worked for a guy that was about 51. When he had his birthday his gift was a "retirement." He used to sit in his office popping Seconals all day long. Truth. Sad.
You know, it seems like such a waste of talent. My gosh! people in my family quit working their businesses at 82 (not 52).
The corporations sure know how to show their appreciation for all your hard work for them....yeah, right.... I hope all corporate people get great pensions to make up for the insult!
__________________
Orchidflower is offline   Reply With Quote
Old 11-13-2007, 05:47 PM   #6
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Well, DW's work "retired" some management with some pretty nice packages, including 18 months severance. Usually you have an option to take a much degraded retirement check, or wait until 62-65 to get a check almost as big as if you had worked until that age. Worker bees were laid off DW's work with a 10 week base severance plus one week for every year served. Some people got 25 weeks because of that. My work laid off ~100 people last year - worker bees, they got 10-12 weeks severance, an extra year put in their pension, a year of health care, and a grab bag of other goodies. If you can get another job somewhere else it may end up getting you ahead financially. But yes, it's why I have no problem demanding as much as I can when I join an employer, I know they won't have any qualms getting rid of me!
__________________
laurence is offline   Reply With Quote
Old 11-13-2007, 05:51 PM   #7
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 347
Most MegaCorps are like fans... Stand in front of them and they blow. Stand behind them and they suck. Stand beside them and they don't do a damn thing for ya....
__________________
USCG regulations say you have to go out. They don't say anything about coming back.
USK Coastie is offline   Reply With Quote
Old 11-13-2007, 09:56 PM   #8
Recycles dryer sheets
fisherman's Avatar
 
Join Date: Jul 2007
Posts: 478
Quote:
Originally Posted by USK Coastie View Post
Most MegaCorps are like fans... Stand in front of them and they blow. Stand behind them and they suck. Stand beside them and they don't do a damn thing for ya....



20 days to go and boy is that on target!
__________________

__________________
Worked the plan and now living the Dream!
fisherman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Corporations going overseas (split from Senator Wyden...) mykidslovedogs Other topics 31 12-19-2006 11:46 PM
MOVED: Corporations going overseas (split from Senator Wyden...) Rich_by_the_Bay Health and Early Retirement 0 12-19-2006 10:48 AM
SPAC's - Special Purpose Acquisition Corporations Craig FIRE and Money 5 03-22-2006 07:27 PM

 

 
All times are GMT -6. The time now is 04:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.