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Jumpy-Natural4868 OP t1_j6knz8e wrote

Reply to comment by cmatthews11 in BNY Mellon takes unusual step in overhauling its 401(k) plan by Jumpy-Natural4868

It basically turns 401k matching contributions into stock options or bonuses.

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thatgirl239 t1_j6mxmev wrote

Didn’t they just give their employees stock randomly?

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Jumpy-Natural4868 OP t1_j6mzw58 wrote

good recall. https://employeebenefits.co.uk/bank-new-york-mellon-stock-plan-51000-employees/

What this means I don't know... (i.e., what the up and downsides are)

For instance, the stock is restricted, so getting equity from it is harder than unrestricted shares. Are they doing this to be nice and "motivate their employees since they now have an ownership stake" or are they doing this b/c it's cheaper than paying them more, and they want to pat themselves on the back that they're being nice to their employees while not giving raises or cutting salaries or jobs?

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thatgirl239 t1_j6n1avi wrote

I worked at BNY for five years. I understand nothing about them.

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