Posted on 01/24/2018 3:43:12 PM PST by markomalley
Verizon says many workers will receive shares of stock Verizon says many workers will receive shares of stock 3:21 PM ET Tue, 23 Jan 2018 | 00:38 Verizon says employees, other than top management, will receive 50 shares of restricted stock, the price of which will be set on February 1.
About 155,000 employees will be affected, Verizon CEO Lowell McAdam told CNBC's "Fast Money: Halftime Report" on Tuesday.
The award could total over $400 million, based on Verizon's current share price. Shares traded around $53 a share on Tuesday, down from a fresh 52-week intraday high of $54.60 after quarterly earnings were released.
The announcement comes after Verizon hinted in its morning earnings report that "employees will further share in the company's success" around tax reform. Verizon expects savings from tax reform will add $3.5 billion to $4 billion to its operating cash flow this year, boosting earnings by 55 to 65 cents a share for the full year.
"I just left the employee meeting where we decided what we were going to do with the $3.5 billion to $4 billion," McAdam said.
That's on top of a previously announced one-time increase of about $16.8 billion under the new tax scheme.
(Excerpt) Read more at cnbc.com ...
Nothing says love like your company awarding you restricted stock trading at a 52 week high. /s
Hmm...so is California going to tell those Verizon employees that they owe half of it to the state?
Yeah, but it beats a sharp stick in the eye.
To me, it would be important to grant one share of mutual find stock to every child who stays to graduate K-12—an important civics lesson that pays off with time. Win-Win.
We have a grocery chain here (HyVee) where every employee own stake in the company profits. They are kicking Walmarts butt and they have extremely nice stores, better produce and are constantly busy. The employees are all very customer oriented.
if they award two shares and the stock value is $50 (to keep it simple) the value of the award is $100. If the stock value goes up, the value goes up. Rewards hard work. So 50 shares at $53 a share is a value of $2650.
Are these awards existing shares, from the company’s holdings or from buybacks, or issuance of new shares, i.e., stock dilution?
The CNBC story says they are Restricted Stock Units.
About 155,000 employees will be affected,
Strange use of the word, affected. Implies negative consequences.
Sucks to be part of the company spunoff to become Fairpoint that was just sold to Clear Communications. No bonus for you.
I’m included in this.. FYI, They are 50 RSU’s granted 2/1. Vested/Paid 50% 2/1 2019 and 50% 2/1 2020. If RIF’ed (something that’s happened routinely the last 3-4 years), you get fully vested at the same payout dates.
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