Career dilemma - put up with 9 months of torture for $3 million?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Haven't read the whole thread so apologies if this has already been addressed. Here is my advice based on my experience writing and administering executive compensation plans: First, you need to read all of the documents related to your compensation and see what happens in the event of your severance. For example, if you are an executive and you have options/restricted stock/RSUs/etc. there is sometimes a clause that will vest that compensation if you are terminated without cause, and then cause is defined relatively narrowly (so poor performance isn't cause). You need to see what your award agreement says and also what the underlying plan document says. HR should have the documents but, if you don't want to ask them, if it is a public company the plan document will be filed with the SEC (look in the appendix to the 10-K for an index to where to find the plan document). Then you'll know exactly what happens if you are terminated before 9 months and you can plan accordingly. Second, if the CEO is pushing for you to leave at 6 months, another option would be for you to enter into a separation agreement to remain employed for 9 months and then go on a paid leave of absence for the last 3 months. That way you hit the vesting date but you aren't in the office/your successor can take over your job responsibilities. Third, you should be aware that the rules under Section 409A can make it very difficult to substitute executive compensation or pay it early, but most plans have provisions that would let the company vest you early and pay you at the same time as everyone else. Again, you need to look at the plan documents to see what is permitted and also who gets to make the decision - this is going to be a lot easier if the decisions re. plan administration are delegated to the SVP of HR than if it is going to take a Board resolution. Finally, from personal experience do not rely on what the HR department says your benefits are - I would recommend that you at least read the documents yourself or even better hire a lawyer to represent you. These documents are technical, and complex situations with executives are usually a one-off so often the person in HR who is dealing with the messy executive termination situation has not considered your unique set of circumstances before and may make the wrong assumption or interpretation of the plan documents. And, obviously, stay for 9 months to make $3M - even if you don't need it, you can donate it to a cause you care about. Good luck!

Not OP, but very helpful and informative. Thank you.

Also, not OP, but agreed, this is very helpful.

Something that sprang to mind for me is are they trying to push her out before her options vest, making her life miserable in hopes she will quit before then?

Whatever the case, OP, definitely stick it out.

[Anonymous]

Anonymous wrote:Yes. I have done more for less, OP.

I would worry about the boss pushing you out before the 9 months. Try your damndest to get those 3M!

DP

I would make it a point of telling him you intend to stay 9months and if he wants you to leave before that he needs to pay out. It happens all the time.

BTW I did something similar for far less, and the boss said I would have to wait it out. I was a pointless extra for a year. The upside is no one would knew if I was alive or dead, so I barely did the minimum. Just play by whatever set of rules they give you.

[Anonymous]

Would they really have you work for the 9mos? I know of a few GM-level (so not quite c-suite) people at my F200 company that have gone on "gardening" leave for 6-9mos which allowed them to vest and prevented them from taking another role...but they were otherwise not working, did not even have email. One person I know well is doing this right now.

Do they really intend to have you doing your job for this whole time?