Who here,who got part of your bonus in stock, expects to be here in 4 years to exercise the option?
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Some numbers after a quick search:
Workers in management, professional, and related occupations had the highest median tenure (4.9 years)
So, increasing RSRs as part of compensation is in the company's interest knowing ~40% of its employees will not be around for their RSR's to fully vest and be paid out.
funny to watch some of your id--ts who know nothing talk about things you know nothing about.
to the one who talked about RSRs as a financial trick - partially right. there are provisions that allowed wells fargo to claw back stock and cash bonus from previous executives because of their wrong doing.
all of the tech companies do the same type of equity to their people, but they give out even to people with less than 50k bonus. and, if you id--ts would take a few moments to realize, that if you're good, and you go to another company, they will either buy you out of your restricted stock or exchange for equity in their company (with a vesting schedule). repeat, if you're good.
you should also know that you get all of the dividends of the restricted shares. you can choose to reinvest them or to get a check each quarter. While true that our dividend has been massively cut, looks like we're on the road to seeing a better one.
oh, and for the insecure, i'll leave you with this one - what happens to restricted stock when you are displaced? not when you quit, but when you're displaced? do your homework.
: @1jqu+1f3Ede0p WFC has had the LTI program for at least 15 years, likely longer. Not a new thing
RSRs are a financial trick to avoid paying people in cash. This is SOP among all major banks especially as they regulators started clamping down on extreme risk taking by bankers . The idea is that once part of your compensation is in stocks that have not yet vested, you will be more prudent.
Unfortunately , Wells was late to opt for this form of compensation. Here most of the fraud has already been committed . The funny thing is that RSRs are being awarded to relatively mid level people and is really a punishment to the wrong people for past fraudulent activities . It is a sad story all round .
I don't receive them, but I was told they'd vest 25% per year, and the assumption is that if you're laid off (as opposed to quitting) you don't lose them.
Why exactly aren't all employees on this? Most the effort and work is done by the mid tier and down. I'm sure after seeing a pathetic merit increase yet again the incentive to work hard just isn't there. No need to work hard if the rewards are getting worse by the day. Most employees after no promotion and years of 1% merit increases are going to spend most their time looking and when people ask about the company trash talk it as being a dead end. This is truly horrible news for shareholders.
Ignoramus - it’s not options.
Who knew that “Long Term Incentives” were not immediate payment. I wish they would name it better to make it more clear.
I thought it was restricted stock that vests 25% each year. It’s actually not a bad deal when you are here long enough that you get all the years vesting
Likely 90% will still be here in 4 years. The bigger the salary the harder it is to leave.
Welcome to the elite of the company that been getting LTI forever. This is why so many long term people here in middle and sr management