Management Buyout Update?

According to The Atlanta Journal Constitution, 194 people took the buyout; 650 were initially offered the deal.

UPS says 194 take buyout offers | ajc.com
 

nhguy

Well-Known Member
Did anyone notice that the company said it costs UPS 80 million dollars to get rid of these 194 people. If you do the math, that's a little over $412,000 per employee. Maybe this package wasn't so great after all. If they are going to get paid this lump sum in 4 payments and their pension is reduced to 50% of what it would have been, it doesn't look that attractive. Most of these people must have had large amounts of stock and only wanted the medical and the opportunity to leave early.

If the $412 k is taxed it's an even worse deal. Be interested in others thoughts on this.
 

lifegoeson

New Member
Please be advised that many (under age 55) did not have "big chunks of stock". Some managers were told they would be working the night sort if they didn't take the package. Nearly 200 of the 650 offered the severance were over age 55. Do the math. Plenty of those over 55 chose to stay. The under 55's who took the package are just plain brave. They are the ones facing the most negative financial exposure. UPS policy penalizes anyone who wants to draw a pension before they are 62 if they didn't work until age 55. UPS did not bridge that gap in the offer.
 
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