What kind of severance packages do ibank employees get after layoffs?

Discussion in 'Wall St. News' started by lolatency, Nov 2, 2008.

  1. I'm asking because I'm about to find out [or possibly find out. Just assuming I'm the one who's getting axed.]

    Last round of layoffs, they let go of a guy whose utility was low. This time, the crew is already fairly slim in our group -- everyone has a critical role. I, however, am the newest and know the least; therefore, in a seniority game, I am the one who will get cut. However, I haven't been around long enough to get any severance pay that's worthwhile.

    Would some veterans comment?
  2. In the first slew of the current round of layoffs (which started approximately 6 months ago) people got pretty good packages, all dependnet on the following criteria, both "hard" and "soft":

    1) Your position in the firm (hard criteria)
    2) The length of time employed by the firm (hard criteria)
    3) And your personal relationships with higher-ups, who's your friend, etc. (soft criteria)

    I'd say you had anywhere from 3 months to one year or more of free money and benefits coming to you.
    Now, with all of the negative attention which Wall Street, Banks and the U.S. Economy have received, there's no telling what the packages will be (if any).

    From what I understand businesses are trying to restructure their relationships with their employees so that whenever possible, they get bupkis.

    I'd need a little more detail about your situation to give you a better answer.

    However it goes. Good Luck and watch your back --- because it's a doggie doggie (dog-eat-dog) world out there.
  3. I've only been around where I am since the spring, after getting out of academia [as a graduate.] In theory, the firm takes a loss on me if they turn around and dump me back onto the market. The reason is because they paid those recruiters heavily to get me on board.

    A point of interest: the day I started was the day Bear went down in flames on the market.

    I don't even have a year with the firm for the severance package. If 3 months is the minimum, I can sort of work with that. That works out to about ~$15,000 for me. Enough to cover rent ($1500/month) for a while. Fortunately, my lease expires in January. Meaning I can probably move into a hovel deep in Jersey for '09.
  4. Surdo


    I left a large I. bank in 2002 and got my annual bonus + 9 months full salary. I even bitched about vacation time and they added on 3 more weeks, with ease.

    I worked there for 9 years and they closed the desk due to a merger.

    Today the same bank is giving out a turkey for thanksgiving and a months pay, times are different.

    Most larger firms have it spelled out what the severence pay consists of.
  5. patchie


    and to think, in any other business it is a week a year for severance.
  6. I have no idea how it's going to go with you, becuase you're job is high-end specialized, and you've been with the firm for less than a year.

    But because you were recruited away from position in academia (if I'm reading you correctly) you can make a case for at least three months severance.

    Some of the best advice you'll get for your situation on this board:

    Talk to your Lawyer on Monday, and don't sign anything or take any concesssions from your firm without their input. If you don't have a Lawyer, you need to get one, post haste

    See, told ya, dog-eat-dog. :p
  7. AAA30


    You may be lucky being a new recruit if the firm finds your skills and knowledge valuable. The reason being is someone with more time at the job would have a higher rate and with the current market conditions they could offer him of her the minimum severance package as laid out in their contract. It also allows the firm the easy out to cut the chafe that would be hard to drop in a good market. My advice would be to not become discouraged and work as hard or harder then you have before to show the management the value in keeping you around. Even if it does not seem like it this shake up in the industry will provide many intelligent individuals the opportunity to move up the ladder and quickly.
  8. Maybe ... or maybe the'll just keep you around until the put the infrastrucure in place to export your job to India.