Does anyone know what the typical value of RSU grants are once you hit JG14 and then 15, 16, and 17? I’ve heard $25k annual grants starting at JG14 but unsure if that’s correct?
Thanks for the insight!
19 replies (most recent on top)
@1qe bubble might die as probably next quarter they raise price.
The raising of RSU cutoff to 16+ seems to be very good cost savings. got rid of the fat layer 14&15s who were previously eligible. look at the splendid EPS performance now. Way to go BB!
Level 16+ need to beat on the CEO and board to do more share buybacks before this bubble bursts.
Cash them options in fast, this bubble only gonna last so long.
@1mp yes agreed. These people have RSU stock options attached and would die for the company. Push the boundaries guys!!
Now that 3M shares have risen. Those 16&above will be very happy and continue to press below for more.
@gm yes. I was JG 15 and got 1400 options in 2017, and the following years got 1015 ('18), 960, 1520, 1600 (in '21). These are options (not RSUs). estimated value at grant for those years were ($30k, 37k, 29k, 29, 36k). It went up or down based on ratings. Most of these are worthless since grant price averaged $165 during that span. Would have been better off taking RSUs. But the decade before this, I doubled (and some tripled) the value - so overall, better off with the options. But if I had to pick today, I would take RSUs (I don't see 3M stock going up much in the next decade).
for JG 15, 1000 to 1500 options is way high. Was not that much.
You haven’t been able to take straight options in a while
Just allow JG16& above to drive the company results. Fair.
To answer the question asked - yes they took away LTI from JG14 and 15, but the estimated value at JG 14 was around $20k and JG15 was around $28k (give or take). Also, if you took the stock option (not RSU), that has a huge swing. Right now they are not worth anything. Before the changes, a JG15 would get between 1000 to 1500 options and 10 years to use them. So if the price went up $50 from the option date, then that would be worth $50-75k. (double that if it went up $100 as it did 15 years ago). That must have been sweet pay days back in the good old days.
Those who are still on GESPP for that 15% but have to hold on for 1 year, will be risking market swings. Not worth.
And then there are those who used GEESP for a savings plan, as well as those who never diversified their 401k away from stock.
@b1 the best way to respond is to let JG16& above to be responsible for driving all the work. Let them get all the direct hit while the rest below qu1et qu1t.
I got the message when they stripped LTI from JG14 & 15; and responded in kind: "If you don't care, I don't care." Quiet quit staring that day and ran under the radar for years giving JG13 level performance while collecting JG15 pay (albeit without LTI).
Remember the same Einsteins that made this decision are the same management gurus that took a decade worth of options and made them worthless by running the company (and stock price) into the ground. Leave it to 3M to not only take away future compensation, but retroactively disappear 10 years of past compensation as well! Adding insult to injury, they also 'flattened' the organization eliminating promotion opportunities.
It's really hard to imagine a worse way a company could sh!t on their employees!
@aa they saved hundreds of millions with this simple stroke to remove 14&15 RSU eligibility from 2024. Simply Genius and minimum effort to increase EPS.
Only directors JG16 & above have RSU now. They are the elite bunch and expected to drive results for BB.
One of their biggest mistakes will have been stripping the options from 14 and 15. I can’t speak for 14 and 15 current values but when 12 and 13 were stripped away 20 years ago I had a remaining option that vested at over $15k gross after ten years. Not sure if 14 and 15 got hush money to shut up and go away, but 12 and 13 were given some in RSU. A manager tried to tell me what a good deal that was but I wasn’t seeing it his way. Long term the 12 and 13 had six figures stripped away when factored over ten years.
Only company I’ve ever heard of that actually took away pay from their employee and only give them at 16 now. Pulled them away from 14 and 15. Way to take care of the people who make the company!