The Wall Street Journal announced today that The White House is planning a $17.4 billion rescue package for GM and Chrysler. One of the stipulations in the plan is that "Firms must accept limits on executive compensation and eliminate perks such as corporate jets." Read the rest of the terms and conditions for the package here.
What are your thoughts on limiting executive compensation in this way? Do you think the terms of the agreement are strict enough? Too strict? After considering the compensation package of Richard Wagoner, which rose 64% in a year when GM lost billions, do you believe a bailout package was the best course of action? In the article, Bush states that allowing the auto makers to go bancrupt is irresponsible. What do you think?
In light of the current economic situation, columnist for the Chicago Sun-Times and The Street, Terry Savage, recently called on Laurel Bellows to offer advice for avoiding and preparing for mass layoffs. In Savage's column, Laurel discusses steps you can take before layoffs are announced, in order to decrease the likelihood that you are the person chosen to be laid off:
• • Listen to your inner voice: If your gut tells you you're at risk, you should immediately and visibly demonstrate your value to your employer. Don't be humble. Make sure that the people who count know what you are contributing to your company -- especially if you're bringing in revenue and are on the verge of bringing in more revenue. No matter what your position in the company, if the client says "you're terrific," ask if he or she would send an e-mail to that effect to your boss.
• • Get creative and energized: No one retains negative people, so make sure everyone knows you love your job. Have a great attitude, whether you're the receptionist or the vice president. Demonstrate how committed you are to your employer. Do this not only by talk, but by action, creating plans to retain and attract new business. For example, the receptionist might like to put a coffee pot at the front desk to welcome clients.
• • Cross-train yourself: If you have some talent, take on some additional responsibility. That makes you more valuable in your present job, and it gives you an expanded resume for future job searches. Be able to suggest additional responsibilities you can take on.
Read all of Laurel's suggestions on preventing and preparing for layoffs, and protecting yourself if and when they do happen, here.
In the comments below, share your ideas for a proactive approach to staving off layoffs. How do you make yourself more valuable to your employer? What are you doing to prepare?
These are tough economic times with many people facing employment decisions regarding separation and job offers that they never had to face before, and certainly not in crisis mode.
No one plans to receive a termination notice from their employer. But, sometimes the writing is on the wall and we just don’t want to face reality. Yet, there are steps you can take to improve the separation package you are offered or sometimes even prevent termination.
And, if you are fortunate enough to be offered new employment or an employment contract, there is the temptation to jump and accept unfavorable terms without negotiation for fear that delay or lack of enthusiasm will result in a withdrawn offer.
When losing a job, and also when seeking new employment, many of our clients have similar concerns. In an effort to ease your fears and help you understand your rights, we will share, over a series of posts, a few of the questions we frequently hear. We encourage you to write a comment with questions and answers about the issues raised in each question.
Question: If my employer provides me with a severance package, but I want greater severance benefits, can they take away the initial terms they offered me?
Answer: Legally, a request for greater benefits could be seen as a rejection because technically, there is no longer an offer on the table. Practically, however, most people continue to negotiate, and might tell you that you must either take the offer on the table, or they may offer you an improved benefits package--rather than a total rejection of your inquiry for improved benefits.