Free songs

Single blog// see post details

your corporate buyout offer

  • 2384 Views
  • /
  • 0 Comments
  • /
  • in english
  • /
  • by Admin

Buyouts are often a polite term for getting fired with benefits, but there are cases when the employee can negotiate terms with the employer, arrange the timing — such as getting cash benefits paid over a two year period to reduce the tax bite, and, with a view of what is coming, take vacation time or get paid for not taking it, use the company car while you can or price a replacement car. With corporate takeovers and streamlining, cost cutting and elimination of many jobs by technology, buyouts are common. Here is a checklist to help judge the value of a buyout: 1 What’s the offer Caroline Nalbantoglu, head of CNal Financial Planning Inc.in Montreal, says it’s important to have a handle on what you are leaving behind, such as a pension plan and life insurance and perhaps supplemental medical and dental benefits. There may be company plans that match RRSP contributions or even non-registered plans in Employee Profit Sharing Plans, stock options that will vest over a period of time but may not if you are no longer employed, she says.“The closer you are to retirement, the more worthwhile the buyout will be.” In other words, a buyout at, say, 60, requires less sacrifice of potential salary and benefits than taking a buyout at 50. 2 What will you do with the money Roll $2,000 a year into an RRSP, depending on years of service prior to Dec.31, 1995 (after Dec.31.1995, there are no $2,000 per year rollovers), pay debts, invest outside of RRSPs and TFSAs? If you have another job, debt-reduction is a good idea; if you do not have another job or one in the offing, then you may need the money to live on, Ms. Nalbantoglu says. 3 To be employed or unemployed Can you find a job while still employed? It is easier to find a job and to network while you still have a position, an office and perhaps a business card. 4 Fringe benefits Company life insurance, company supplemental health and dental? The taxable portion of use of a company car, which can be in tens of thousands of dollars if you use it for personal purposes a lot, indicates what it is worth. There may be company-paid travel.It will be for company business, of course, but being sent to Paris or Rome is not a bad thing and, of course, there are always the mileage points you get on Aeroplan and other affinity cards. 5 Social benefits The reasons to get up in the morning. This is a difficult benefit to measure in dollar terms. Unless you have other interests in life, it may be wise to keep on working, Ms. Nalbantoglu says.