March 28, 2023

Though it’s a bummer to listen to about extra layoffs, I additionally really feel a whole lot of hope and pleasure for individuals who have misplaced their jobs for 2 causes.

First, there’s the good thing about getting a severance package deal. Think about getting a severance package deal value six months of wage after which discovering a brand new job two months later for comparable pay. In case you do, you should have had two months off after which get to earn double pay for 4 months!

Second, the sting of getting laid off would possibly lastly propel of us to take a leap of religion and begin their very own enterprise, return to highschool, or enter a brand new area of labor. Pressured change generally is a large blessing!

Studying to adapt to an uncomfortable state of affairs will solely make you stronger. Getting laid off may very well be top-of-the-line issues that would ever occur to you. I do know it was for me.

Patiently Ready To Inform You About The Mass Severance Package deal Negotiation Story

After sending out one in all my weekly newsletters, I received an e-mail response from a reader. He talked about he was laid off from his Large Tech Co. Nonetheless, he additionally shared a severance package deal negotiation story I had by no means heard of earlier than.

I’ve truly been sitting on this story since early 2020 to guard the reader. He agreed to let me instantly share his severance package deal negotiation story if I didn’t share the place he labored and his final title.

Nonetheless, as somebody who negotiated my very own severance again in 2012, issues can get dicey when deferred compensation is concerned. Till all of the severance package deal cash hits your checking account, you’re nonetheless at your earlier employer’s mercy.

Even after you obtain all of your severance cash, it’s finest to remain quiet for some time. In case you do one thing to jeopardize the status of the agency, the agency may conceivably attempt to get that severance package deal a refund!

The $40 Million Mass Severance Package deal Negotiation

Right here’s the e-mail from a Monetary Samurai publication subscriber.

Hey Sam,

Thanks for the publication and severance negotiation e book. I purchased it with a plan to make use of it to engineer my layoff within the subsequent 12 months, however issues modified. Sadly, I used to be laid off at Large Corp earlier than I may begin negotiating a severance.

Though this was unhealthy timing, I did use the arrogance and a few refined methods in your e book to get an even bigger payout for Restricted Inventory Models (RSUs), which I might have missed out on by a couple of month.  

If you wish to hear the story however promise to not use my final title or firm, I’ll inform ya the story.  

I used to be initially going to strive negotiating getting my RSUs paid out only for myself. Ultimately, I ended up campaigning to get the RSUs paid out for the two,000 of us that had been let go! 

The common worth of the RSUs was $20,000 per particular person, so this was a $40 million ask. And I received it for everybody. Thanks!!!



Holy crap!

We all know the biggest severance package deal ever was by the ex-founder and CEO of WeWork who walked away with about $1 billion. However that’s a particular case as a result of the man was the founder and was capable of make the most of SoftBank’s foolish cash.

Till Bob’s e-mail, I had by no means heard of or thought in regards to the technique of negotiating a greater severance package deal for different colleagues as properly.

Due to this fact, I requested Bob to elaborate how this $40 million severance negotiation occurred. Right here’s his clarification.

How One Man Negotiated A $40 Million Severance Package deal For two,000 Colleagues

I labored at Large Corp for the final six years doing software program. I used to be solely staying for the cash and advantages till my daughter was in school.  

A brand new VP was employed to move all of software program. As is normally the case with a brand new Kahuna, heads had been going to roll. My group’s boss and different bosses all of a sudden began ‘retiring’ with out warning. They every gave 1-week notices.

In huge company gamesmanship, this actually meant {that a} new greater fish had are available in, fires those that aren’t behind his new technique, and places in his personal individuals from earlier corporations.  

I knew the writing was on the wall. I started scheming my very own exit for a while when Large Corp introduced that our complete group and others could be lower – about 2000 individuals.

Blasted! They beat me to it!

New CEO, New Imaginative and prescient

Now on the identical time this was taking place, we had a brand new CEO who was very clear. He wished to get the tradition aligned with him. We even had an enormous HR marketing campaign about fact and transparency within the office.  

The brand new CEO had all-hands conferences with all the staff however failed to say these layoffs in any respect. One other subtext is that Large Corp is old fashioned and has a extremely fear-based tradition. Everybody thinks they are going to get lower on a regular basis. It’s actually a weird and unusual place.

Like I mentioned earlier, I remained at my job for the cash – banking and saving 65% of my take-home pay.

So Large Corp ultimately introduced that we’d all be laid off and pay a good severance. We even had just a few weeks’ discover with a view to attempt to discover one other inner job earlier than our precise final day. That basically by no means occurs. It’s only a frequent courtesy gesture to decrease blowback.

The Quest To Get Workers Their Restricted Inventory Models

All the things about my severance was acceptable, besides that my final day was 4 weeks earlier than our subsequent spherical of RSUs vested. This might suck as a result of it was appreciable – about $24,000 to me.

Plus the previous couple of years Large Corp had begun to provide extra RSUs as a substitute of money raises – so this was deferred wage in a method.

I requested HR in regards to the RSUs and advised them properly that it wasn’t truthful. As anticipated they mentioned, “robust shit, unhealthy timing” in essence. Hmmmmmm.  Properly, that does suck.

Negotiating A Severance Instantly With The CEO

So with the methods out of your e book and the arrogance that it gave me, I made a decision to pitch my concept on to the CEO. On the finish of the day, he was the one one who may make the decision.

I wrote the CEO an electronic mail telling him that the layoff timing was horrible and that we deserved these RSUs for these causes:

1) We had been only a few weeks away from getting them. Is that this who ‘we’ are as an organization?  (angle = not truthful)

2) Many people got these as a alternative for greater deserved raises in the previous couple of years.  (angle = this was our cash already)

3) The corporate has simply had one of the best monetary 12 months and quarter within the firm’s historical past. Those being laid-off helped us ALL get there. (angle = we’re getting laid off however helped you get a large bonus as CEO)

Then I advised the CEO that I used to be sending the message on to him as a result of he may get the job completed and that I appreciated the tradition of fact and transparency – and ended it with “In Solidarity.” Heh  😀

All these items had been meant to be arguments you can’t actually argue with as not true. To counteract my factors, all he’d should do was say ’robust shit dude’.  

Energy In Numbers By Organizing

Anyway, I despatched him the e-mail and I heard nothing again for 2 weeks. Then I started to gather a listing of all laid-off workers and wrote them an electronic mail making an attempt to get all of us to signal a marketing campaign to provide us the RSUs. Strategically, I didn’t ship out the e-mail as a result of I knew they had been watching me. I simply wished to have them observe my intent.  

My grasp plan was to have all 2,000 workers electronic mail the CEO and head of HR on the identical time. I actually simply wished them to sweat.

Then out of the blue, we received an electronic mail from HR saying that as a one-time change to coverage, we’d be given the money equal of our 2020 RSUs upon leaving.  

This was stunning to me since with 2000 workers and a median of $20,000 RSUs every, this was a $40 million marketing campaign that labored!

The Change Of Coronary heart

So I by no means received a response from the CEO, however I wrote him an electronic mail thanking him for the RSUs. He lastly did reply and mentioned that I used to be welcome and thanked me for the earlier electronic mail.  

I spoke with HR earlier than leaving and requested them in regards to the change of coronary heart and all they mentioned was that it got here from the very prime. Uh huh. Yeah OK.

The timing was additionally essential. We had been advised we had been getting laid off two weeks earlier than the COVID-19 shutdown. I’m certain that had I waited even two weeks to marketing campaign for our RSUs, the reply would have been, completely no friggin’ method.  

The marketing campaign labored and most people who benefited by no means even knew what I did to assist them out. Good karma I hope!

A Lesson In Asking For What You Deserve

Bob’s story about negotiating a mass severance package deal is unimaginable. It exhibits him:

  • Being strategic and resourceful by studying How To Engineer Your Layoff. You will discover something you need on the web in case you look. Use the code “saveten” to save lots of $10.
  • Having the braveness to ask for what he thinks he deserves. He may have simply simply accepted his severance package deal, just like the overwhelming majority of individuals do.
  • Demonstrating sufficient emotional intelligence to correspond with HR and the CEO in a respectful method. It’s straightforward to go on the offensive and get emotionally charged whenever you really feel disrespected.
  • Skillfully crafting an unassailable argument if proven to the general public. Bob knew from studying Monetary Samurai, one of many the reason why negotiating a severance is feasible is because of absolute reputational destruction.
  • Understanding the ability of group and the energy in numbers. He knew he may get a whole lot of different individuals on his aspect.

Studying easy methods to negotiate properly is without doubt one of the most vital abilities in life. A negotiation is concerned in every little thing vital – from getting a promotion to getting your youngsters to go to mattress in an inexpensive method.

Be taught to empathize with different individuals by understanding the place they’re coming from. Empathy entails making individuals really feel heard, seen, understood, and cherished. In case you do, you’ll get a lot farther than you ever thought doable!

Reader Questions And Recommendations

Have you ever heard of 1 particular person negotiating a mass severance package deal earlier than? In case you’ve been just lately laid off, what was the expertise like? How huge of a severance package deal did you get?

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