Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Oct 2014, 14:35

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Strange things a-brew at work (previously "my cfo's pay")

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 24 Mar 2008, 13:05
No, this is NOT a rant about how much execs are paid. I am not really bothered by all that. This is instead about the company where I work. All of this info is public (you can find it on yahoo finance) but I'd rather not name my company for fear of being googled. If you want to guess, feel free to private message me!

I work for a small (~150 person dot com company)We got a new CFO back in August 2007. He was a VERY poor fit for the company. It showed within a couple of weeks. Seriously, even the customer service folks noticed.

His salary was $200k, plus stock option goodies, etc that vest over 4 years. ($16,667 a month).
It was announced he was leaving the company as of march 31 2008 in mid Feb. Other high-level manager have made it pretty obvious he was "pushed" out.
He will have to give up the options, but don't feel too bad about it.

Today I see an announcement (publicly available on yahoo finance) that he will be paid 2 months salary on his last day in exchange for (paraphrasing) "continuing to do his job until the last day. He has not been in the office since the announcement in mid feb.

He did not accrue 6 weeks of vacation in 6 months.
This means that in march he is being paid $50k (16,667 + $33k [2 months salary]) to NOT COME TO WORK.

My last day at work will be may 30th (already told my employer). I *WILL* be working until that day. Perhaps I should ask for $33k in additional to my normal pay for coming to work in May? I would imagine my completing menial tasks is more valuable to the company than his sitting at home watching judge judy?!?!

Hell, I would even compromise and take triple MY pay ($4500 + $9k [2 months salary]) .

For a split second (out of PURE ANGER) I thought of proposing this to the CEO. Of course I thought better as then my poor poor self will be "pushed out" just like the CFO. Oh, except that I won't get the extra $33k gift.

Thoughts/Comments?

Cheers.

Last edited by westsider on 03 Apr 2008, 09:49, edited 1 time in total.
Intern
Intern
User avatar
Joined: 11 Dec 2007
Posts: 27
Location: Oakland, CA
Followers: 0

Kudos [?]: 4 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 24 Mar 2008, 18:20
Ha! That story actually reminds me of one of the reasons I'm going to business school in the first place:

I have a friend who I run with who is about 3 years older than me (early 30's). He works in asset management. In late 2005 he left his job as a managing VP with a boutique asset management firm that was heavily invested in Mortgage Backed Securities, CMOs, CDOs. When he left he was required to sell his share of ownership in the firm (he was not a partner, it was some kind of S Corporation). This was before the real estate bubble burst, so the company was doing really well and he sold his shares for the equivalent of about 1 years salary.

He took about eight weeks off after he quit, because before he left he had lined up a job with another asset manager with a similar portfolio (heavy in real estate related stuff). He received three months salary as a signing bonus. During his eight week vacation between jobs, the $h*t started to hit the fan in the sub-prime market. Turns out his new employer was hit pretty bad and his position ended up evaporating. To make up of the inconvenience of being laid of before he had worked a single day, my friend was offered six months severance pay by his new employer.

A month later he was back working for his old firm with a raise. If he had stayed with his original employer instead of going on vacation not only would he not have gotten the raise, but his shares in the company would have been nearly worthless. All in all he ended up receiving roughly 1 3/4 years pay for taking a three month vacation.

You don't see those kind of perks as an engineer.
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 24 Mar 2008, 18:32
WOW.. what a story.

As an engineer, all you see is the BROKEN coffee machine in your office and the laid off/hours reduced hourly employees. All while some dufus they never should have hired makes $1,600 a day watching telenovelas in an attempt to learn spanish.
(That settles it. every time I mention this guy I will try to find a new way to quantify how much he is paid, and speculate on what he is doing with his time). :-D
Current Student
User avatar
Joined: 10 Dec 2007
Posts: 327
Followers: 5

Kudos [?]: 23 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 25 Mar 2008, 06:37
Sorry guys, but even here in good ol' Europe its absolutely normal for high-ranked managers to be fired and then receive money until their contract runs out or the notice period is over.

We had a guy running our Product Management who came in November 2006 and was let go in May 07 but received his pay until the end of the year because thats how long his fricking contract was running. He was not allowed to start anywhere else in the meantime, but thats one nice long vacation...
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 25 Mar 2008, 09:13
Yeah, but he didn't have a contract of that sort. It was "at will" - could be fired at any time for any/no reason.

Meanwhile he is making ($50,000/30 days/24 hours/60 minutes)* 10 mintues $11.57 while he makes Minute rice (10 minutes).
Meanwhile I make $1.04 in those 10 minutes at work
(per-minute pay when prorated 24/7 over a month)
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 25 Mar 2008, 15:38
I ride the bus for 20 minutes to get home from work, wait a few minutes, and walk a few as well. Total time about 40 minutes.
If he rode the bus with me he would make $1.157 (per minute)*240 = $46.28 in that time.
That would be enough money to replace the broken coffeemaker in the breakroom so I wouldn't have to pay $1.50 at starbucks for a cup.
$1.50 = 57.3 seconds of his time, or 14.4 minutes of my time (at $0.104 per hour)

(per-minute pay when prorated 24/7 over a month)
1 KUDOS received
Senior Manager
Senior Manager
User avatar
Joined: 05 Feb 2008
Posts: 322
Location: Texas
Followers: 2

Kudos [?]: 59 [1] , given: 10

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 25 Mar 2008, 22:56
1
This post received
KUDOS
I agree. That is crazy. I would ask for a raise. :lol:
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 26 Mar 2008, 14:03
Both kitchens are now out of Paper towels. I now have to walk to the bathroom to steal from there... until they run out as well.
Time wasted: 10 minutes/day
During this time he makes:
$11.57
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 03 Apr 2008, 09:48
-The paper towels have (triumphantly) returned to the kitchens.
-Sadly I have just found out that our "free sodas" will disappear.
-In their place will go a 10-cent per can vending machine. The idea is to prevent people from "walking off with a 6-pack".
-Apparently the bad results last quarter were due to theft of Mountain Dew and Diet Sprite.
-Managers have promised to set out a "dime bag" so we won't have to actually pay for the sodas.
-I guess the thought that a manager buying the soda rather than the company is supposed to make me less likely to "walk off with a 6-pack"?

More as the story develops.

(For those keeping score)
Cost to CFO of soda: ~5.2 seconds
Cost to Me of soda: ~ 1 minute
Director
Director
avatar
Joined: 25 Dec 2007
Posts: 524
Schools: Harvard '11
Followers: 9

Kudos [?]: 62 [0], given: 28

Re: My CFO's ridiculous pay - WTF?! [#permalink] New post 03 Apr 2008, 15:33
LOL what a ridiculous thing to do! Soda, in my opinion, is like productivity juice, and companies should never charge for it :)

westsider wrote:
-The paper towels have (triumphantly) returned to the kitchens.
-Sadly I have just found out that our "free sodas" will disappear.
-In their place will go a 10-cent per can vending machine. The idea is to prevent people from "walking off with a 6-pack".
-Apparently the bad results last quarter were due to theft of Mountain Dew and Diet Sprite.
-Managers have promised to set out a "dime bag" so we won't have to actually pay for the sodas.
-I guess the thought that a manager buying the soda rather than the company is supposed to make me less likely to "walk off with a 6-pack"?

More as the story develops.

(For those keeping score)
Cost to CFO of soda: ~5.2 seconds
Cost to Me of soda: ~ 1 minute
Manager
Manager
avatar
Joined: 02 Oct 2006
Posts: 147
Location: Nepal
Followers: 2

Kudos [?]: 5 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 05 Apr 2008, 17:06
westsider,
I hope you continue with this thread because it is now getting hillarious. You havent posted for a couple of days now so I am worried about what that manager must be doing with his free time!!!!! :wink:
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 09 Apr 2008, 11:29
Sorry for the slowdown in updates. the lack of sugar and caffeine have slowed me down a bit.
Important updates:
-Soda consumption claimed to be 100,000 cans a year
-CEO claims $0.10 will only cover cost of vending machine, and cans themselves will cost the company the same as before.
-If there is no change in consumption, employees will pay $10k (100kx$0.10) a year for something that is saving the company exactly $0
-Over the course of 5 years, employees will pay the same for the "once free" sodas as the CFO was paid NOT to come to work in March. Seems fair. (Sorry, have to include a mention of this dude in every post).
-Over 5 years employees will pay the same for the "once free" sodas as I get paid in a year.
-Last week there was a shortage of powdered creamer in the office. Anyone wanting coffee had to leave and buy it at the starbucks. This led to a dramatic drop in my coffee consumption and therefore, productivity (since my other source of caffeine - soda - had been cut off as well)
-This week the creamer has (thankfully) returned, but there is now NO SUGAR or sugar substitue of ANY KIND in the office. I am sensing a cruel, cruel joke.
-Alternate theories include that this lack of coffee fixin's is being used to garner support for "pay-per-cup" coffee.

**breaking news**
The vending machine is now fighting back. Reports are pouring in that the machine has accepted people's dimes WITHOUT dispensing any soda.
2 KUDOS received
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [2] , given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 22 Apr 2008, 11:34
2
This post received
KUDOS
It just stole *MY* dime. Charges may be filed in small claims court.
Developing....
SVP
SVP
User avatar
Joined: 08 Nov 2006
Posts: 1560
Location: Ann Arbor
Schools: Ross '10
Followers: 12

Kudos [?]: 165 [0], given: 1

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 22 Apr 2008, 11:52
ROTFL. Kudos!
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 02 May 2008, 08:42
The machine has stopped simply stealing the dimes. When it does dispense it is now dispensing the wrong soda.

When sodas were free we had a mini-mart style fridge.
It is nice to see we are paying for the privilege of getting nothing - or simple not what we paid for.
ROCK ON! :-D

p.s. 20 days to go....
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 06 May 2008, 16:04
Speaking of stealing money - it turns out that due to a little "office space" style "glitch" in payroll I have not been paying the $90 a month for my bus pass.

See, I bumped up my 401k to 95% a couple of months back (to make sure I would hit the federal limit by the time I left work). However, after social security taxes, I had $0 left in my check to pay for the bus pass - so I had been getting it free.

Sheesh - now they want me to write a check! Maybe I will bring the 3600 cans of soda instead (at $0.10 a can)
Director
Director
avatar
Joined: 11 Sep 2006
Posts: 514
Followers: 2

Kudos [?]: 35 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 12 May 2008, 08:15
OMG everyone at work now thinks I'm nuts - I've been laughing out loud at this thread - howlingly funny. Hang in there westsider! :lol: :lol: :lol:
_________________

...there ain't no such thing as a free lunch...

SVP
SVP
User avatar
Joined: 24 Aug 2006
Posts: 2135
Followers: 3

Kudos [?]: 87 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 13 May 2008, 10:16
westsider wrote:

Sheesh - now they want me to write a check! Maybe I will bring the 3600 cans of soda instead (at $0.10 a can)


$0.10 a can? What state are you in? I'm going there to double my income!
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 16 May 2008, 16:46
No joke - just got back from the in-office "Cinco de Mayo" Party.

Apparently no one here speaks Spanish.
Senior Manager
Senior Manager
User avatar
Joined: 23 Jan 2008
Posts: 498
Followers: 1

Kudos [?]: 51 [0], given: 0

Re: Strange things a-brew at work (previously "my cfo's pay") [#permalink] New post 19 May 2008, 08:29
Just occurred to me - the bus pass money should have come out pre-tax. This means I am losing ~$50 due to the general incompetence here. I guess it shouldn't surprise me. I lost thousands a year by taking this absurdly low-paying job. at least the sodas are fre.... oops. nevermind.
Re: Strange things a-brew at work (previously "my cfo's pay")   [#permalink] 19 May 2008, 08:29
    Similar topics Author Replies Last post
Similar
Topics:
1 2 strange Quants questions on my GMATPrep test...... darylyip 3 12 May 2014, 03:46
GMATPrep - how does this thing work? abhicoolmax 4 24 Jul 2011, 11:14
2 Hard work pays off ingoditrust 21 18 Aug 2010, 12:36
2 Experts publish their posts in the topic Strange thing happended to me while doing gmatprep mandb 8 13 May 2009, 17:32
strange things are happening ankitraheja 2 10 Sep 2005, 19:56
Display posts from previous: Sort by

Strange things a-brew at work (previously "my cfo's pay")

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page    1   2    Next  [ 23 posts ] 



GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.