Several years ago, my boss shared with me that new owners
would agree to a purchase, if he and I were to remain with
the company. It had to do with understanding significantly
valuable to a new owner and what they planned to do. This
kind of arrangement is not uncommon in technology companies
that may be involved in merger and acquisition activity.
(Note all the activity in Pharma.) Al Sklover’s recent
excellent guidance on what to look for and what to seek
is heady information in the first item.
We did not receive nor ask for a retention bonus.
A second article gave insight on the financial side of
our careers relating to some financial indices that
signal good habits. There is some debate about adding
different ones than the 15 given in the linked article.
Nonetheless a couple were quite meaningful for me.
Google is diving into the biomedical device arena
starting with contact lenses by partnering with Novartis
(-Alcon) and other technologies to solve the world’s
problems. Andrew Conrad spoke about this on WSJ.com
and is highlighted in various business magazines.
RETENTION BONUS CONSIDERATIONS AND INSIGHT
SOURCE: A. Sklover, Sklover’s working wisdom, 1-6-15
“Responding to a Retention Bonus Offer“
The retention bonus is a good faith business agreement, thus
will be offered with a formally drawn contract that is legally
binding when finalized. Al points out the usual meanings, traps
and details that can be considered for negotiation.
There are certain terms to look out for and exclude, actively
employed and sole discretion, and better phrases that
represent your position better. There is also an opportunity
to negotiate, he points out, but beware with a legal counsel
on your side.
This is another excellent, point-by-point discussion on legal
matters in lucid language.
DECISIONS: BUY OR RENT, RMD STRATEGIES, MUTUAL
SOURCE: A. Prior, WSJ 1-3-15, p, B1
“The numbers you need to know.”
We are in the process of considering downsizing and wonder
where to move and do we rent or buy. This article listed the
price to rent ratio. In a high, scarce rent area, it is better to
buy and in a cheap and plentiful rent area, it is better to rent.
Market assessment by other words, I suppose.
It also offered a strategy for required minimum distributions
RMD [for when we reach 70 1/2] when little else exists.
If you have enough income without RMD, then ask your
sponsor to hold off payment until the 4th quarter and
request enough to cover both state and federal taxes
as well as quarterly estimated taxes. This allows you to keep
the money in the tax shelter for most of the year.
Should have thought of that!
How much is your estate tax exemption (differs in each state),
mutual fund expenses (keep <1.0%), home insurance coverage
(replacement cost), debt service and rate, AGI levels, fixed,
recurring and discretionary expenses? Seems like a good
checklist, even if only a couple apply to you now.
GOOGLE BIOMEDICAL VENTURES
SOURCE: L. Friedman, Business Insider 11-3-14
“Here’s what experts really think about Google’s plan to
find cancer sooner“
I viewed an interview on WSJ Live and dug a little into
creating devices with nanoparticles made from iron oxide
to monitor what is happening in our bodies to get both
early detection and continuous monitoring of proteins,
enzymes and biologically relevant signal molecules.
Here is a scientist speaking to business people and
marketers who understands the different modes of
thinking. For marketers good outcomes in
experiments point to successes; for scientists,
experiments disprove hypotheses. He also “paints
a memorable word picture” in a story about what
motivates the work and Google.
The topic is unusual, the speaker fluent and this
reveals a new technological direction for the future.