What to Consider When Facing a Shell Severance
Key Summary: With oil prices sinking over recent weeks and even temporarily going negative in the WTI futures, many energy executives are concerned about their company stock and retirement accounts alongside concerns about their job security. Using strategies such as tax loss harvesting and target band rebalancing can help diversify your portfolio and make the most of the market downturn. Before your last day at Shell, it's important to make sure you’re taking advantage of the benefits available to you before they’re gone. By maxing out your Provident Fund, you could save over $55,000 in 2020. Additionally, Shell employees receive a significant benefit through the employee stock purchase plan, the GESPP. In a year where where the cost basis for RDS.A is at historic lows, you should consider maxing out the GESPP before your last day to get the full benefit of the 15% discount offered to Shell employees. Another benefit you should consider using before your last day is the Shell learning credit offered to Shell employees (up to $2,000 for employees before retirement and up to $1,000 after retirement) that can be used for professional or personal development classes including classes on financial planning. If you’re expecting to receive Benefit Restoration Plans as part of your severance package, it’s important to make your elections early and understand the tax impacts of when they pay out. If you don’t make these elections carefully or in the right timeframe, you could be unintentionally pushing yourself into the highest tax brackets. Lastly, when you accept a severance from Shell, it’s considered a “conditional severance.” This means that, in Texas, you’re eligible to apply for unemployment benefits from the Texas Workforce Commission. After a long career at Shell, it can be complicated trying to navigate a severance package without leaving anything on the table. If you have questions or are unsure about what elections to make, get a second opinion from our team of financial advisors with an in-depth understanding of your benefits or fill out the form below
