@nelkins
I'd say hold it hostage all the way! :)
That's why PHB sees this as a worst case scenario. He can now under no !$%*!$%*!$%*! fire Wally or risk losing the vital information, but Wally under no !$%*!$%*!$%*! will do any work with the vital information, knowing that he can't be fired now. :p