More Videos Charles Schwab talks brokerage wars. How grocery stores are handling rising food prices. Peloton slashes forecast as demand slows. Spirit Halloween haunted by supply issues amid record high sales. The Fed is banning its policymakers from buying individual stocks. Economist: Supply chain crisis is here to stay for 'quite some time'. Massive layoffs from the Schwab-TD Ameritrade merger have snared many former employees in non-compete agreements hindering their ability to find jobs in the COVID pandemic.
Eight former TD Ameritrade staffers who held various positions in the firm spoke to RIABiz about the difficulties and uncertainty they are facing following the layoffs of more than 1, employees. All asked to remain anonymous in order to speak candidly. The San Francisco-based broker offered severance packages, including vested restricted-stock, to many staffers, but it is handing non-compete agreements differently than TD Ameritrade had in the past. These packages may not be enough to support families for a long time especially given the economics today in the midst of a pandemic, says Karl Heckenberg, president, and CEO of Emigrant Partners.
But this is a very heavy-handed tactic that most employers take. The company imposed formal non-compete restrictions on any TD Ameritrade managing director or employees with restricted stock units, confirmed Schwab spokeswoman Mayura Hooper. It's unclear how many staff members were handed non-competes. One source told RIABiz that this provision impacted more than staffers, but Hooper says that number is inaccurate.
Keep in mind that not all of the managing directors were impacted. Many remain," Hooper says. Other sources estimate this provision impacted around former staffers, noting that TD Ameritrade was generous with its stock options to high-performers in many positions across the company.
Those who lost their jobs were offered "substantial severance packages" in exchange for signing the severance deal with a month provision, Hooper says adding that the non-compete agreements were part of TD Ameritrade's restricted stock policy.
Typically, severance was granted based on length of service at TD Ameritrade. For instance, managing directors may have received up to four weeks per year of service while others received less. The minimum was about 26 weeks of pay, a former staffer says.
One of the TD Ameritrade sources says that former staffers in some cases were "three or four positions below the CEO and now are stuck in a non-compete. They'll tell you to apply again in a year," another former staffer says. But former employees say their medical benefits will run out before then, forcing them to turn to the private market or COBRA, short for the Consolidated Omnibus Budget Reconciliation Act.
Both are costly. TalentTrack Schwab. Former employees said Schwab executives offered no meeting or other communication to explain the form. They were unclear how their job requests would be evaluated, or if an appeal process would be available. Who are the people making these decisions? What is the appeal process? Former staffers said one of Schwab's benefits included resume assistance.
How can they help us if Schwab is going to decline us? Typically waivers are only granted in situations where an ex-employee is patently unthreatening, says John S. Tamer and Judge will remain with the firm until October, the source said.
Schwab declined to say how many jobs were cut. Listen to free podcasts to get the info you need to solve business challenges! Schwab aligned the management structure and across management in the TD branch network eliminated over about 1, roles, it said. In February , Schwab disclosed that it slashed another or so jobs as part of the ongoing integration with TD Ameritrade.
And, in May , Schwab said it eliminated more jobs at TD Ameritrade, including at least three of its executives, as part of the ongoing integration of the firms. Think Advisor.
0コメント