Bill, aka the Crazy Clock Guy, aka Hey You (tallguy) wrote,
Bill, aka the Crazy Clock Guy, aka Hey You

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I shouldn't complain, but I will anyway

Just had my benefits meeting in anticipation of my layoff.

I'm getting shafted on my vacation pay. As of my last paycheck, I still had 80 hours of vacation time available. However, when you are terminated, your vacation is pro-rated based on the month you are let go. According to thier chart, I have accrued 32 hours (no time accrues in January or February, and 8 hours per month for March, April, May and June). This means that I don't get paid for over half of my vacation time. After a little finagling, I got them to bump that up to 40 hours, but that's still only half of what I was expecting.

The shitty thing is that if I had known I was going to lose that much time, I would have taken all of my time, had a 2 week vacation, AND THEY WOULD HAVE PAID FOR IT! Of course, without any money in the bank, it would have been 2 weeks of sitting on my ass or searching for a job, but it still would have beat being in the office.

The other crappy thing is my stock options. Here's where it gets complicated. A few years ago, I and the rest of my team was given an option for 250 shares. However, these shares vest to me over a 5 year period. At the time I was told I would be laid off, I have 150 shares that I could exercise within 30 days of my termination. However, our stock was not trading much higher than the option price of 3.22, and it didn't look like it would go signifigantly higher. Add in the broker fee, and I would actually lose money if I chose to exercise the option. I was just going to let them go.

Fast forward to the beginning of June. It was announced that my company was going to be aquired, at a price of 5.70 a share. The deal is scheduled to be finalized in late August. At that time, all of our outstanding options became fully vested, and the company that bought us would buy the shares from us and absorb the brokerage fee. That meant that option holders would realize a net profit of 2.48 per share, or almost $625, without having to pay a broker fee.

Now it's today. I am told that as of my termination, I will be fully vested. However, I must still exercise my option within 30 days. The stock is currently trading at 5.60, give or take a nickel. Assuming I exercise my options at that price, I would see a profit of just under 600. But wait, I still have to pay the broker fee of $45. That means my profit will be $550.

Keep in mind, this is now considered capital gains, and will be taxed at 28%. After taxes, my proceeds will be less than $400, whereas the people who are still here will see nearly $450 after taxes.

I have to look at it this way: if the buyout didn't happen, I wouldn't be getting anything. The way it is now, I will be getting a couple hundred bucks, just in time for us to pay our escrow shortage when we refinance our mortgage. I really shouldn't look a gift horse in the mouth. I guess I'm just cheesed off that I am leaving in a few days, and really don't like what I have to look forward to.
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