Goodbye and Good Luck

He did not know how to start. He had being working for almost 5 years in that company. One of the largest companies in the country. He had a good relationship with everyone. The problem was that this company at that stage did not provide opportunities for career advancement. Finally, just like that, he we went into his boss’ office and told him. His boss immediately offered him a significant increase in his salary in order to stay. Our hero, although flattered, could not accept it. We had given his word. His boss did not like it, but he seemed to understand. It sounded like a great opportunity for him, so he did not want to be an obstacle for his development. He wished him the best. Our hero gave a month notice. On his last day the company organized a big party for him. Everybody was there in order to say goodbye and wish good luck. Even the Chairman of the board, one of the most important businessmen in the country. Extremely emotional moments that he would never forget. A benchmark had been set...

Big Surprise

The next day he communicated with the HR director and formally accepted the offer. It was done. That same day they told their families. Everybody was shocked. It was not something you hear every day. The most difficult part for the families would be the fact that they wouldn’t have the heroes’ son living near them. He was nearly one year old and everybody adored him. But everybody understood that this decision was in the family’s, including of course the little guy's, best interest. Day by day friends also found out. The same reaction from everyone: Big surprise. Then came the hard part. The hero had to notify his current company.

Let's Do It

The following weekend was quite stressful for our hero and his wife. They had to make a decision. A decision that would totally alter their life. Many thoughts were going through their minds. The offer, stock options, according to company policy, the distance, the foreign country and the difficulties, the good job he was leaving here, the kidnappings, etc. The company had promised our hero to offer him a job in group headquarters after his return to his country in three years. Our hero did not take this very seriously because he knew that this depended on the job openings available at headquarters then. The most important incentive for him not only to change a job, but to move to another continent, was the stock options. This would give him the opportunity to improve his family’s life. The phrase “according to company policy” did bother them, but they had to show goodwill. Our hero and his wife thought that it would not be possible for a multinational company like that to be dishonest to an executive it was going to hire and send to another continent. It would be against all business ethics. Therefore the trust his friend was asking for, seemed reasonable.

Sunday evening the decision was made: Let’s do it.

Trust

After waiting for a couple of hours he saw him. Of course, his reply to this issue was the one expected: Don’t worry. This is only a legal term, because the exact number of stock options that each executive will receive is not yet exactly determined. Our hero asked for a modification in the offer that would make him feel more secure. This is not possible his friend said. But I promise you that the stocks you will receive in 5 months from today, will give a net pay of what we have discussed: at least an amount equal to your total annual salary. You have to trust me and the company.Our hero was very troubled. It was clear to him that there could not be any modification in the offer. In this form however, it made him feel insecure. One the other hand, he did not want to show bad faith and loose a good opportunity. He asked the HR director for a couple days to think.

According to Company Policy

As you can imagine by now our hero did not receive any written offer for nearly a week. The stock options made the compensation package very attractive. The only risk was the stock price, but our hero estimated that there will not be any significant fall in the price for the next couple of years. After a week the HR director sent a written offer by e-mail. However things were not exactly as discussed. The part concerning Stock Options, one of the most basic elements of the compensation, was a bit grey. It said clearly that our hero was entitled to stock options, but a strange phrase was also included: “according to company policy” Our hero did not even try to call the HR director. He went to his office in order to meet him in person.

Stock Options

Besides medical insurance, which of course is included in the package, you will also have a furniture allowance for you house, he continued. Furthermore, and this is the good part, you will have stock options. Our company compensates its high level executives with stock options each year. You of course will be included in this program. What amounts are we talking about, our hero asked? I cannot tell you exactly, but I estimate at least an amount equal to your total annual salary. This means double money! What do you think of our offer now, the HR director asked? This sounded very attractive to our hero. This meant that his family’s income would be more than doubled compared to what they are currently making. With this amount, the risk is worth it, he thought. When can I have it in writing he asked? Don’t worry, the friend said. I will send it to you by tomorrow. The only thing I want from you is to find a good investment in the country that you are going, in order for us to invest together. You see, I am also receiving stock options. Leave the rest to me.

The Offer

We want you to join the group he said. I have discussed it with the Financial Director of the group and I have an offer for you. First of all housing expenses will all be paid by us and we will also pay your tickets (family included) to visit home 3 times a year. Come on, our hero said, this is something that all expatriates have. Tell me about the salary and the bonus. Our hero heard the number and made some quick calculations. It was not good enough. The money was slightly more, about 10%, than he made with his wife at home. This assuming that we would receive his bonus. It is not enough he said immediately. Sorry my friend, but this is not worth it. I am not taking such a risk and moving my family to the other part of the world for a 10% increase in our income. And don’t talk to me about housing expenses and tickets. Wait, said the HR Director. There is more.