On the same day 3M announced JG14 & 15s will take a pay cut and no longer receive LTI compensation, 3M gave JG16 & 17 an additional bonus. In essence, 3M took away from 14s & 15s and gave it to 16s & 17s.
Do more, with less, and here’s a pay cut manament to you future leaders of 3M!
I wonder if executive pay got cut now that we benchmark against a different, non-healthcare, peer set…
Those working levels 12/13 here are unlikely to have any chance to ever smell LTI payout. Since promotion opportunities are hard to come by, and it will take decades to hit that magical 16&above. If you are talented suggest that you look elsewhere.
Jg14 here close to 55 yo . I am near retirement so I plan to hang around till they give the next golden handshake. Don't expect me to do more to fatten the pockets of those Jg16+ LTI or AIP.
No more!!
Company dares to do this cut to 14/15 likely because there's just too many people at this level that is leeching off the benefits. They are willing to let natural attrition take place without paying severance. And good luck to those 12/13. Suggestion is better leave.
Let's face it: it is nothing more than cold, hard cost savings. Period. They did it because they could. and then said Now what you gunna do about it? Those close to retirement probably just stick it out to the end. Younger people should look for a better place to work as it not only hits those currently getting LTI but those who aspired to higher levels where they would eventually get them. Now that is dead. Get out while you can.
One explanation that I have heard from a manager is that 3M only wants to reward people that are " successful" and " loyal". Hence no more LTIs for JG 14 and 15, as they are considered neither loyal or successful in 2024!
If you are working at the bench, remember that only 3 to 4 % of employees can ever reach a JG 16 or T6 level, that too after working for at least 25 to 30 years.
Hence conclusion is if you are in technical ladder, DO NOT expect any RSUs or stock options ever in your career.
Good luck hiring good employees in future or retaining the few good technical folks left today !!!!
About 10% of base pay at the time of the grant based on share price if you took 100% RSU's.
Post from TheLayoff.com
All presidents have been instructed to provide a vague response so over a period of time these two layers have natural attrition. As a strategy that’s sound. Whether it is liked or not is a different matter.
Just watched the CBTD townhall talk by President Silvia. During Q&A someone asked her how she felt on the JG14/15 being stripped off LTI and her strategy for talent retention. Looks like she doesn't have answer for it and talks bullsh1t
I'm going to guess 14 is about $20k in value. JG15 is about $28k in value...give or take, I've been gone a year.
For what it’s worth, to me this would be a big blow to people’s income if 3M stock were performing like it did 10 to 15 years ago….meaning going up somewhat steadily year over year. I was a 14 during that time and I was able to put 3 kids through college with most of the tuition paid from stock options.
Don’t hate on me for this. I’m just trying to say that the impact of this change is really big, and really stinks. I don’t understand the rationale at all. I’ve always had the opinion that the stock option plan or profit sharing plan should be inverted…..a meaningful amount/opportunity to the lower grades and minimal amount to higher ones. Having executives get most of their money from stock or profit sharing encourages short term thinking. And people who can really make a difference to daily operations are the ones who should get rewarded for it (better from profit sharing than stock options, actually….a share in the near term gain they helped create).
When the 12/13 lost LTI in 2006, 12 was given $10k and 13 was given $15k in RSU hush money to basically shut up and go away. You had to hold the shares for three years. Beyond that, I recall around 2003 reading an article that the companies were going to have to compensate more in order to keep talent. 3M did the opposite with good (to them) results. They took stuff away so you could not afford to leave. And there was no one to complain to except your boss, who knew the math and were sc--wed as well.
The email to 14/15s did say that there will be a premium this year, like the other year. Then it said about the removal of LTI, and that there would be some compensation for that.
So I think 14/15s are getting the same “bonus” as the 16/17s. But it was lost in the noise of LTI being ki-led.
Real question. I am JG13 and was expecting a promotion later this year and was looking forward to the value of the LTI. How much was the LTI worth on an average year and what was the range in real $, approximately?
JG 14/15 can cry yourself a river with the loss of your LTI. I was a T4 (same as JG 12) back in 2006 when they eliminated the LTI for JG 12/13. Didn't hear much support from the JG 14/15 supervisors/managers back then. Now you're whining that it was eliminated for you! Can't say that I feel that it's right but I certainly don't feel sorry for you as the same was done for me without your support!
Moni Potty must be giggling in his basement after he executed this order. Must have said to CEO….“if you do the maths“ OR „it’s simple maths“ …which obviously the CEO was incapable of doing. What a logic defying move this is.
I didn’t lose 15% of my salary, I was granted 15% extra time off to have a side job and make 50% more money.
The JG14/15 can take their foot off the pedal, now that the company thinks that it's not necessary to link the company financial rewards to these people efforts. The JG16+ might have to pick up the slack now and push harder, since they still have the stakes.
I am a 16+ and the 2nd announcement is undefendable. Wonder what anyone was thinking if anything at all to get rid of 14/15 LTIP and announce extra for 16+. I was a 12 when we lost options the first time and now I know how much that impacted. Big chunk of pay taken away plus pension. A lot of 14/15 still are in portfolio 1 and 2
Just quiet quit...don't need to b1tch about the loss of LTI...it doesn't really matter.
Most WYW people used to just watch the last spin the wheel and then the showcases on TPIR. After this, time to watch the entire hour-long show. Do a few emails at commercial breaks and then take a longer nap after lunch. What goes around comes around, Brownie Boy.
Wow. I was JG14 and left 3M about 18 months ago. About 20 years experience in multiple rolls and businesses. It was tough parting with unvested LTI, but to me the writing was on the wall and the value of LTI was no longer something to count on. The news I hear from my former coworkers is almost exclusively negative and the company keeps making these difficult decisions. Glad I left.
Based on the results under the M & M & M(terminated for cause) reign, none of the senior leadership or the BOD should be getting any of their variable comp. A once proud and well run company has been managed by fools. Retention will be a problem now with the BOD and executive leadership's most recent decision regarding LTI. We need to see those making the decisions share in the pain, that those below them have endured, if they have been able to make the cut. Let's hope Bill Brown can make a difference.
Anyone seen how much % wise of prior grants this one is for 14/15?
I was neutral about being assigned to Solventum about a year ago. Now it’s looking like a lot better place to work than 3M.
Yes, taking LTI from 14/15 made zero sense and then awarding a special (not quantified) LTI for 16-L2 made even less (maybe to keep everyone “equal” - f’ed up logic). There will be a mass exodus in three years if this grant is lucrative and no one to backfill all the pension eligible folks that will leave in ‘28. #upside if you’re a 13?
Dominik a cut to dividend doesn’t make ws happy…
It's either they cut the employees benefits (in this case LTI), or they cut Dividends. Either way they have to p1ss off someone. Guess they have to make Wall Street happy
Maybe all those positions are not worthy. Sounds like it was the polite way of 3M telling you to quit so they don't have to layoff or terminate. Maybe they're getting too much litigation from layoffs. They're getting desperate at reducing numbers.
Will be taking all vacations.
Work time ends at 4:30pm.
No longer working when its dark outside.
Cannot wait for weekends.
No longer checking emails during non-work hours.
Vacations now provide real relief.
Thanks 3M for the new perspective.
You'll never pick up on this new perspective
As JG14 and JG15, we know how to act and present ourselves when we are on the clock
I have never understood quiet quiting until now
Under the adv3M structure previously, plant Managers are at least JG15, with the larger plants holding jG16 director levels
The JG15 plant mgrs definitely can influence the Division's financial performance. Same goes for JG14 which are typically the product mgr levels.
Same can be applied for the technical or sales ladder
Any moons ago. Just before I hit JG 12. jG12 got LTI. At the time they explained it as JG12 did not have enough responsibility to impact share price.
In my opinion jg14 does. Plant manager for example. Or senior sales manager
Glad I left and milked it while I could. Generally paid around 5k per year after tax
It's directly implying that JG14&15 is no longer considered holding stakes with company from next year.
While most of JG14&15 are not in GESPP too, it's no longer any motivation to gain any benefit from share price increases. Don't need to work hard. Just cruise on. And let the higher JG16+ work their worth.
Yes, as a token of appreciation for all the hard work level 16 and 17 will be getting an additional grant in 2024. This is in addition to their LTI.
So, apparently us level 14 and 15 just coasted. We didn't work that hard. Taking away our LTI is sick. 3M believes level 14 and 15 did not work that hard. What is wrong with you 3M? Bias, toxic, and sick.
This is true. 14 and 15 got their LTI removed. 2024 will be their last one. They will get a “little extra” as a parting gift.
After that email was sent anyone 16 and up received another email saying they will continue to receive LTI and as a token of appreciation for all the hard work they will also be getting an additional amount in 2024.
This is how you work the talent out of the pool and reset the wage rates. The top get to stay and profit from their positions. The lower ranks now clearly defined as 15 and below, will get stripped down compensation.
14/15 was told that the reason behind this was that healthcare workers get LTI and since 3M isn’t in that space anymore they were removing it. But wait… according to a 14 solventum worker they also don’t have LTI and just got a 10% raise instead.
No one believes you 3M. You expect us to believe that a business that was only 20% of the company drive the decision to have LTI for an entire company? And now it’s gone so you remove it, but the actual healthcare business also doesn’t have it?
This is why we are failing. We can’t even tell the right story to the people that work here. Let alone tell a story to a consumer.
True story. Confirmed. Ask any 16 or 17.
Please don't come to stir sh1t if OP has no evidence. JG16 and JG17 are the important director leaders of the company.
Can anyone confirm? What bonus did they get?