Trump/Musk’s Buyout Program Attracts 500 SEC Staff Members, Causing The Agency To Lose 10% of Workforce
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The US Securities and Exchange Commission (SEC) found itself in a situation where it might lose 10% of its staff, after around 500 employees decided to accept the $50,000 buyout offer introduced by Trump and Musk. The alleged departure of a large amount of the workforce was reported by inside sources, and will strongly affect the agency, whose entire workforce consists of 5,000 staff members.
This will be the largest exodus the SEC has seen, and it is expected to significantly impact multiple areas within the agency. Three of its sectors, including The Division of Enforcement, Office of Examinations, and Office of the General Counsel will all experience the most substantial losses.
The anonymous source also said that the number of departures could increase even more, as employees have until the last Friday in March to accept the initiative package before the offer is withdrawn. The voluntary separation agreement considers any employees eligible if they have been on the regulator’s payroll since before January 24, and agree to leave through resignation, immediate retirement, or transfer.
Another term of the agreement is that those who leave the agency may not return within the next five years, otherwise, they will have to repay the full incentive amount.
The US Continues To Cut Costs By Removing Employees Across Government Sectors
The move is part of a larger cost-cutting initiative within the SEC, and the US government as a whole. The SEC itself intends to terminate leases for its Philadelphia and Los Angeles offices. Furthermore, the General Services Administration has considered ending the Chicago office’s lease, in spite of potential penalties for doing so.
The agency has already eliminated senior positions at regional offices, even though they handle a significant portion of the SEC’s examination and enforcement activities.
The cuts have also been criticized by numerous legal experts, who see them as contradictory to effective government operation.
A group of Columbia Law School professors, including John Coffee Jr. and John Coates, recently wrote a blog post in which they say that the Trump administration claims that all agencies should be reduced in size by a similar margin, in effect sharing proportionate reductions. However, this ignores the fact that the SEC has generated more in fees than in operating expenses.
