Have a Merry Christmas = Sears Style

[golfnut]

This is disgusting and so sad at the same time.


https://www.msn.com/en-us/money/com...kers-struggle-during-christmastime/ar-BBR8Sds


mod edit (due to naked link)

Headline "While Sears execs get $25 million in bonuses, laid-off workers struggle during Christmastime"
Snippet

In a court filing obtained by the Chicago Tribune, Sears Holdings proposed offering a total of $8.4 million in bonuses to 19 executives if the company meets its financial targets in the next six months.

Sears Holdings also got the okay to set aside up to $16.9 million in retention bonuses for 315 senior employees, the paper reported. Each would get a cash award worth 30 to 40 percent of their salary, split into quarterly payments over the next year.

 

[Mr._Graybeard]

Laid-off worker was making $10.50 an hour part time and "finally felt like I was making it." Ouch. The American Dream, downsized.

 

[Sunset]

This always make me laugh at the stupid reasoning, since these top people (looking at you Eddie) are the ones that drove the company to the ground:

"On Friday, a U.S. bankruptcy court judge allowed Sears Holdings to hand out the bonuses after the company successfully argued that it would lose its top people if there’s nothing in their stockings this Christmas."

 

[Texas Proud]

Probably not all of them drove it in the ground... I would agree that Eddie was one though...


I worked for a company that failed... the top of the top were gone... some of the other top people had to stay in order for there to be a planned liquidation... to keep them they were offered stay bonuses... if they did not get one most left... and that was a big brain drain as nobody wants to come in when it is a sure thing that it will be closed in 6 to 12 months...

 

[Amethyst]

I've noticed, over the years, that companies not uncommonly shut down right around Christmas. Is there some kind of end-of-year tax benefit for doing this?

A striking example was Expo, the Home Depot "upscale" branch, which closed down in late 2008. The workers were devastated - to be laid off, from a store where they really enjoyed working, right at Christmas! Our Expo had been one of the few in the chain that actually turned a profit even after the housing crash.

 

[RunningBum]

I've noticed, over the years, that companies not uncommonly shut down right around Christmas. Is there some kind of end-of-year tax benefit for doing this?

A striking example was Expo, the Home Depot "upscale" branch, which closed down in late 2008. The workers were devastated - to be laid off, from a store where they really enjoyed working, right at Christmas! Our Expo had been one of the few in the chain that actually turned a profit even after the housing crash.

It makes sense for retail, since sales should be high during the holiday season and fall off after. But it seems to happen with non-retail businesses too. I'd guess there is a tax break, but I don't know.

The counter I've heard to how cruel it is to lay people off at Christmas, is that if you wait until just after, people will complain that they spent money on Christmas assuming they had a job, and now they have the bills from it with no job to pay them. Not sure how much that makes sense, or if it's just a justification they came up with.

 

[ponyboy]

I dont think its sad at all. All of those execs are just people. You, me, or any of those workers have an opportunity to be a top exec. Granted, if you come from a family of privilege its much easier to find yourself in that role later in life.

I went into a profession that would never make me a ton of money. I have no desire to manage people, climb the corporate ladder, etc. Why would someone like me ever get mad at someone who dedicates their life to work? Its not justified.

I cringe whenever I hear someone say "must be nice" when they see someone rich or an exec who received a $30 million package when they exit a company. People have no idea that most of those upper execs have really dysfunctional lives. They eat/breathe/sleep work. Im pretty close to a few now retired A level execs...they are some messed up people. I wouldnt trade my life for that. (they are fun to hang out with though!)

 

[Aerides]

I've noticed, over the years, that companies not uncommonly shut down right around Christmas. Is there some kind of end-of-year tax benefit for doing this?

A striking example was Expo, the Home Depot "upscale" branch, which closed down in late 2008. The workers were devastated - to be laid off, from a store where they really enjoyed working, right at Christmas! Our Expo had been one of the few in the chain that actually turned a profit even after the housing crash.

Oh man did I love the Expo. I hemorrhaged money there when I had a new house. I got my 10 ft pre-lit christmas tree there in the fall of 2008, right as things were starting to collapse. As the staff loaded it into my car they all cheered my spending and support of the economy!

Most MC's have an unwritten rule that layoff news is given before thanksgiving, or after Jan1. But retail may be different. As far as Sears, that writing has been on the wall for years.

 

[MichaelB]

I've noticed, over the years, that companies not uncommonly shut down right around Christmas. Is there some kind of end-of-year tax benefit for doing this?

That’s an interesting question. My Megacorp employer, not retail, always announced workforce reductions close to year end, even if they did not begin until the new year was underway. On the announcement date, however, they booked the entire “estimated / projected cost” of the downsizing. The cost projections were quite liberal, and more often than not, once the reductions were complete the provisions had funds left over - which became profit for the following period. Sort of a way to push some regular expense into a “cost of RIF”.

While I’m not suggesting this is always the case, it’s much easier to do with announcements close to the end of the fiscal year.

 

[Teacher Terry]

I find it disgusting that the employees were supposed to get 8 weeks severance yet stopped it at 4 weeks while the big wigs are getting big money.

 

[golfnut]

I find it disgusting that the employees were supposed to get 8 weeks severance yet stopped it at 4 weeks while the big wigs are getting big money.

+1

 

[Amethyst]

So did we! We loved going there because not only were the products great, the people seemed to love showing and telling about their product section. My favorite was the lamps and lighting section...like fairyland, with an adorable guy in charge of it. Oh well.

QUOTE=Aerides;2159444]Oh man did I love the Expo. I got my 10 ft pre-lit christmas tree there in the fall of 2008, right as things were starting to collapse. .[/QUOTE]

 

[Texas Proud]

The reason that it seems like companies fail at year end is related to what MichaelB said... but for companies that are closing subs or divisions etc...


Most CEOs will wait till year end to write stuff off it they can... kinda a clean all the driftwood out...



And if you do identify who is going to be laid off and when you can book a reserve for all that at year end...



Once the year is done then that is all past and 'we' can now look forward to our new year...

 

[Spock]

My megacorp moved the 401K match to only those employees still on board for the year-end pay period from Dec 15-31. So they "resource action" with last day on board before Dec 15.

 

[LOL!]

I don't expect people to think this through at all. Paying $25 million so that $500 million doesn't go "Poof!" instantly is probably a wise decision. For instance, if all these folks quit instantly, there would be nothing for the rank-and-file at all. No paychecks, no severance, no nothing. It gives more people a chance to scramble for the doors.