Corporate Responsibility?: A Wall Street Reorganization and One Man’S Job Search Experiences

By William Hynson

Corporate Responsibility? is somewhat unusual in that while it is a non-fiction book based on actual fact it reads more like fiction. It tells as story revolving around the acquisition of and subsequent reorganization of a major Wall Street firm and the impact this had on many good and loyal employees particularly employees over the age of 40. There is a discussion of how employees were terminated, how this affected their income and benefits and the difficulties they had in finding appropriate employment. The authors personal experiences in dealing with executive search firms, employment agencies, temporary employment services, an outplacement firm, responding to employees had in finding jobs. As indicated at the beginning of the book this story was first prepared in draft form a quarter of a century ago but never published at that time. And, although times have changed, it is nevertheless felt that this is a story worth telling and that the book may be of interest not only to anyone who is a student of history of Wall Street but that it may also be helpful and informative to anyone seeking to find a job in todays difficult employment climate.

• Language: English
• Publisher: Xlibris US
• Release date: Jan 18, 2012
• ISBN: 9781469142654

William Hynson

Mr. Hynson was born at Bronxville, New York on April 30, 1932. After serving in the Army in Korea during 1953 and 1954 Mr. Hynson began a career on Wall Street joining The First Boston Corporation where he worked from 1954 to 1975. He received a B.S. Degree in Banking and Finance from New York University in 1960 after attending evening classes. From 1976 to 1985 Mr. Hynson worked for the firm of Prudential-Bache Securities where he became a First Vice President in the Corporate Investment Banking Division. Much of Mr. Hynson’s investment banking career involved handling competitive bidding financings which raised billions of dollars for companies in the electric, gas and telephone industries. Mr. Hynson and his wife have traveled extensively up and down the east coast and eastern half of the United States and are currently living in Morganton, North Carolina. Mr. Hynson is the author of “So You Want to Own an RV?,” “My First Seventy-Five Years” and “Corporate Responsibility?”

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Copyright © 2012 by William Hynson.

ISBN:          Softcover                                 978-1-4691-4264-7

                   Ebook                                      978-1-4691-4265-4

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TO MB, SF, VF AND AL

Contents

Introduction

Part I  The Problem

Part II  Prudential- Bache Securities

Part III  Termination

Part IV  Job Search

Part V  Mba Myths

Part VI  Conclusion

Look not Mournfully into the Past

It Comes not Back again

Wisely Improve the Present

It is Thine

Go Forth to Meet the Shadowy Future

Without Fear and With a Manly Heart

                    Longfellow’s Hyperion

INTRODUCTION

This story was first prepared in draft form a quarter of a century ago but never published. Now in the year 2011 the United States is faced with a serious unemployment problem. This book does not address the current unemployment problem directly and the reader should recognize that conditions have changed greatly over the years. Nevertheless, it is hoped that this might provide an interesting story and useful insight that could be helpful to people looking for jobs in today’s difficult climate. This should also be useful and informative to anyone who is a student of the history of Wall Street.

The loss of a job is a traumatic experience for anyone who has ever been placed in this unfortunate position. This is particularly true when people lose their jobs for reasons that have nothing to do with their job performance. There have been countless instances where people have been forced into early retirement or have had their employment terminated for various reasons. The reasons are meaningless because if an employer really wants to terminate someone’s employment it can almost always find a reason. Whether the termination is made under the guise of financial necessity, whether it is the result of a merger or reorganization or whether it is done simply in order to hire someone else the impact on the employee is still the same. That person is out of a job.

For people over the age of 40 who must then go out and find new employment the problem takes on serious dimensions given the difficulties they will encounter in finding appropriate employment. And the term appropriate needs to be defined as something that will allow a person to continue to utilize their skills and experience in a productive manner and at a comparable salary level and with comparable fringe benefits. The combined problems of these people losing their jobs on the one hand and encountering great difficulties in finding appropriate employment on the other hand raise important questions relating to what I refer to as Corporate Responsibility in dealing with employees. Should employers be allowed to force employees out of their jobs and under what circumstances? If there are instances where this practice is justified what is the obligation of the employer to the employee and what constitutes a fair and reasonable termination arrangement? How can employers be prevented from exercising a bias against hiring older employees and what happens to these people when they cannot find appropriate employment? Answers must be found to these questions.

Having been part of a large company which changed ownership and which then subsequently underwent a reorganization that resulted in many good and loyal employees losing their jobs while at the same time many new employees were being hired I have been personally exposed to virtually every problem that someone in their early 50s encounters when suddenly faced with the loss of a job. Along with many of my former associates I not only felt the full impact of being forced out of a job but also experienced all of the difficulties a person my age subsequently encounters in trying to find new employment.

The situation at Prudential-Bache Securities was not one where people in their late 50s or early 60s were singled out as a group and offered the incentive of accepting some form of early retirement package. Rather the terminations were across the board and affected people at all levels and all ages. Good people were forced out of their jobs simply for the sake of making a change. Prudential-Bache Securities is not the primary issue here but it represents an unfortunate example of what can be allowed to happen and it conveniently serves to open up the entire spectrum of questions relating to the issue of Corporate Responsibility in dealing with employees.

My first hand experiences during the months that were to follow my termination opened my eyes to many things that I was never fully aware of or had never concerned myself with because I had always felt secure in my own job and what was happening to someone else was of no particular concern to me. From my extensive dealings with companies directly and with executive search firms, employment agencies and other organizations, from the experiences of friends in a similar position as well as those of numerous other people I have met and from everything that I have read and heard I have concluded that the problems relating to employees in their 40s and 50s are far greater and far more serious than most people realize. Countless numbers of people have already been negatively impacted by questionable employment practices and these practices could potentially affect even greater numbers of people as time goes on. People over the age of 40 who have lost their jobs have already experienced the harsh realities. People over the age of 40 and still working need to realize that at some point they could be out of a job. People under the age of 40 and those just starting their careers need to face the future realistically and plan their lives accordingly.

My biggest concern is that what I have discovered may be just the tip of the iceberg. It is because of this that I felt there is a message that must be told. Having decided this the next step was to determine just how to go about it. Talking to people about the problems of older employees, while helpful to a point, was not the answer as it is impossible to talk to everyone and there is rarely any follow up. Making speeches and writing to newspapers seemed like a one shot approach to a limited audience that would soon forget what was said. I decided that the most effective approach would be to set aside the necessary time and write a book which could not only potentially reach a larger audience but which, more importantly, would also serve as a tangible reminder of something that has not received enough attention and which is a major problem facing our society. The sole purpose of this book is to create a greater awareness of what has been happening and the resulting impact and to get people to focus on the issue of Corporate Responsibility in dealing with employees over the age of 40.

I am confident that there are many people who from their own experiences will quickly agree with many of the things that I have discovered. I am equally certain that a number of people who are responsible for hiring and employment practices will go on the defensive and attempt to fully justify their practices. I hope there is an outpouring of commentary from both sides. The more these issues can be brought out into the open and discussed the better the chances are of finding some satisfactory solutions. If this book strikes a few nerves then I will be satisfied that it has made an important contribution to our society and served a useful purpose.

I could not have written this book at the time of my termination from Prudential-Bache Securities. It took time to put together enough facts to realize the full impact of what actually happened. It took even longer to experience all of the subsequent difficulties in finding new employment and I can assure the reader that everything that is included in this book is a true picture of what was actually experienced. Not having a steady source of income at the time I began writing this book it might seem somewhat imprudent to have devoted the time to this effort. I can only hope that my time was not wasted and that this effort will result in some widespread soul searching and some constructive steps being taken that will result in a better society for everyone

PART I

THE PROBLEM

Much has been written and spoken about unemployment and the difficulties older employees have in finding jobs. Virtually untouched has been a related aspect of this that is having far more serious consequences throughout our society than most people realize. This is the extent to which older employees are actually losing their jobs or more specifically where they are being forced out of their jobs. The justification given does not always reveal the fact that in many instances the underlying reason is to make way for younger people.

Most publicized are early retirement programs where employees usually in their late 50s or early 60s are given an incentive to agree to take early retirement. While some of these employees look forward to this opportunity many would prefer to continue working but they usually accept the offer rather than run the risk of staying on the job, assuming they have a choice, and finding they will receive a less favorable offer. While it could be debated whether these employees should be put in a position where they should be forced to make this sort of decision they are at least provided with some means of subsistence in the form of a pension even though it will probably mean a reduction in their standard of living.

What is not so widely publicized or fully understood by most people is the extent to which people in their 40s and 50s are being forced out of their jobs and subjected to many years without any financial security. There is an important distinction to be made between forced early retirements where employees are forced out of their jobs but receive pensions and forced terminations where employees are forced out of their jobs but do not receive pensions although there is a common denominator in that in each instance the employee is forced to give up their job.

Whenever the subject of finding employment for older people is raised most people immediately think of people who are close to the traditional retirement age of 65 or people over the age of 65 who are either eligible for or are receiving pensions or social security, or both, and who are looking for a means to supplement their income. These people are not looking for a full-time career position and the solution to their problem is often found in finding part-time work in a low level job at a minimum salary equivalent. This solution does not solve the problem of another large segment of the population.

To most people the definition of an older employee does not extend to employees in their 40s and 50s and yet it is within this age group that some of the most serious problems exist. This is where large numbers of employees have been forced out of their jobs for a variety of reasons and who then face great difficulties in finding appropriate employment. Many of these employees are at the managerial or professional level and have above average salaries. Usually they have family responsibilities and the need for a maximum income. They are at the prime of life and have much to contribute and yet they are suddenly cut off from all income and fringe benefits.

What hits these employees particularly hard is the fact that they have worked hard all their lives supporting a corporate system which in the end lets them down. These are the white collar employees who have been too proud to have ever considered joining a labor union. They have look down on employment in the public sector and have always aligned themselves with management. They have always considered that they are part of and that they have a vested interest in their company and, indeed, their very contributions have enabled their companies to survive over the years. When their company turns around and kicks them in the face it is not only a devastating blow but their faith in the corporate system is shattered.

One of the most important problems facing our society is what these people are supposed to do and how they are going to support themselves. Aside from the anguish and hardship not to find suitable employment for these people and fully utilize their skills and experience represents a