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Comment by autaut | Hacker News Reader

Is he going to pay the severances out of pocket? Is he going to personally help those employees get back on their feet? Is he going to make sure their families are ok? Is he stepping down?

What does it look like besides cheap talk from a cheap and clueless leader?

The guy is just another mediocrity who tripped into a huge pile of money and now it’s everyone’s problem while he acts as a giant baby.

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I think you're more upset about this than the typical Meta employee. Judging by... vibes, the main reason they aren't taking volunteers for these layoffs is that they might get more than 10% champing at the bit to take the severance.

The 2022 RSUs at Meta have more than doubled since the grant price, and are mostly vested out now, ending Feb 2027, after which there will be a steep TC decline for people employed since 2022, especially those on an initial grant or with very good performance for that refresher. There are a good portion of people sitting on either FIRE or at least extended funemployment amounts of money that the severance is looking mighty tempting to.

>provide severance packages for those in the United States that include “16 weeks of base pay plus two weeks for every year of employment”

That is a standard package and no way a FIRE or at least extended funemployment if they have children or a mortgage.

But crazy level of sycophancy on your part

The money comes from the past few years of the stock going from 180 to 500-700, not from the severance.

E5s making $900k, $E6s making 1.5m… quite common.

That might happen for a year or two but it's not like they're getting refreshers priced at 180. After paying all the taxes, and factoring in the HCoL area they probably live in, I doubt many people are retiring early on that. Very few high earning people would quit their high paying job so they could live a "normal" life and worry about bills and expenditures.

> Is he going to pay the severances out of pocket?

More or less? The vast majority of his personal net worth is tied up in FB stock.

As to the other questions -- the severance package is pretty generous.

He is not putting the shares down himself. He is just subject to price fluctuations like everyone else — so how is he taking personal responsibility for it?

Layoffs don't necessarily lead to share prices dropping, in the short term or long term. It definitely wouldn't impact the loans he presumably lives off of by using said shares as collateral.

The severance that is paid out is money that could have been paid out to owners (him)

No they couldn’t because the severance is paid out of the money the budget set aside for wages for the year. So out of the 12 months, they give 4 months to the laid off worker and Facebook pockets the other 8 months.

Facebook could give zero severance, "pocket the full year budget" to use your phrasing, and distribute it to owners as a dividend. The severance comes directly from cash that could have been distributed to owners, as GP originally said.

They don’t give severance to be nice, severance is hush money. To get the severance employees have to agree to forgo any legal claim they could have with the company. They have calculated that it’s cheaper to offer this money than to have to pay lawyers to defend the company from pissed former employees seeking to drag the company to court.

This is an entirely new claim from the one you made earlier and somewhat divorced from your original line of questioning around severance (https://news.ycombinator.com/item?id=47885133).

Ultimately, regardless of whether the severance is generous or just a calculated ploy to keep former employees quiet, it comes out of shareholders' pockets.

It is not my claim it is common knowledge. The problem is users here trying to pretend that a standard legal practice is Zuckerberg taking personal responsibility. No he is just following the advice of his legal team.

On severance: > the reality is that severance payments are just as much about protecting employers as they are about helping employees. In today’s complex labor landscape, employers are acutely aware of the risks associated with employment disputes and potential lawsuits. By offering severance payments, employers aim to minimize their exposure to legal claims, maintain compliance with labor laws, and safeguard their reputation in the marketplace. This practice is not just about goodwill—it’s a calculated move within the broader context of employment law and labor regulations, designed to manage risk and maintain control over the employment relationship. Understanding the real motivations behind severance payments is essential for both employees and employers navigating the ever-evolving world of employment.

https://capclaw.com/employers-pay-severance-out-of-fear-of-g...

This is assuming, though, that should shareholders want to take distributions the money wouldn't be there unless the layoffs are done. Facebook has plenty of cash to cover both if it shareholders or the board wanted to keep employee count stable and also pay out a comparable dividend.

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