Buyout Program

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Buyout Program

A program in which an employer asks employees to quit voluntarily in exchange for a lump sum payment, or a series of payments over a brief period of time. A buyout program generally is created when the employer is facing long-term financial difficulties. It releases the employer from the liability of continuing to pay salary, insurance, pension payments, and so forth. If a sufficient number of employees participate in a buyout program, the financial situation of the employer may improve sufficiently to avoid involuntary layoffs.
References in periodicals archive ?
Evidence of completed federal coastal property buyout programs from across the country shows that these types of investments pay for themselves within 10 years by permanently avoiding response, rescue, recovery, and repair costs from future floods.
The Journal Communications-owned Journal Sentinel has not been immune from the industry recession, and has reduced staff with two voluntary buyout programs within the space of less than a year.
To avoid unfavorable tax consequences, employer-sponsored home purchase buyout programs should avoid contingent sales that allow employees to negotiate the terms of the final sale.
In the last two decades, governments at all levels started informal buyout programs as well, although Celia Boddington, a spokesperson for the U.
9 million, after tax) related to labor buyout programs in certain stores and at headquarters, along with $4.
Since the Great Flood of 1993, FEMA has successfully implemented voluntary property buyout programs to relocate more than 20,000
Thus, little is known about the overall effectiveness of buyout programs in inducing voluntary separations of nonretirement-eligible personnel.
Voluntary buyout programs can work, so long as administrators reserve the right to veto the application of any worker they deem too valuable.
These buyout programs have been attacked by environmentalists because buffer zones do not decrease accidents or pollution, though the buffer zones may reduce the direct harm toxins will cause.
In order for large-scale buyout programs to work, offers must be attractive.
I also support a greater federal involvement in low-income, long-term housing buyout programs and more tenant management of public housing units.
Since inception, Advent has raised US$26 billion in private equity capital and, through its buyout programs, has completed over 250 transactions valued at approximately US$50 billion in 35 countries.