Valleywag
Yahoo CEO Jerry Yang doesn't want to see another Bradley Horowitz go. So, to stop key talent from heading out the door, Yahoo plans to stuff a few coat pockets with fat new retention packages, Kara Swisher reports. Along with more cash, these packages will include a change-in-control clause that bloats the severance pay a new owner would have to pay to lay off these employees.
It's a cute trick that scores Yang two points. One, he gets to keep more talent and two, the change-in-control clause works as a mild poison pill to increase the cost of a Microsoft-Yahoo merger, potentially making it less appealing to Microsoft shareholders. Of course, it's also also the kind of move that might further anger Yahoo shareholders eager to sell the company and be done with it.
Comments
Microsoft might actually like this plan, as it helps to keep the talent that it wants at Yahoo.
Wouldn't this have to be approved by the board anyway?
When in doubt, throw money at the problem.
That's what I did with my second wife, Daisy. (I know you reading this, Gal!) Vacations, gifts, kosher Salami, what have you.
We still got divorced. But, just between me and you, Valleywag, if Daisy were to call me after all these years, I'd drop everything and go back to her. That's how much I love that exotic, Moroccan Tangerino.
Actually the retention packages (along with 'change of control' clauses) are for everyone. Not just those at the top.
A sensible and fair-minded move IMHO.
Wow, and the execs just keep getting richer while the company continues to be less innovative that the competition. Sounds like another way for the non-decision makers to make some more $$$ at the expense of the once great company.
Well thats not a bad move... Kinda sucks to be in the lower rung of the company though.
What talent?
I think Jerry Yang was almost certainly delighted to see Bradley Horowitz go, much like the rest of us! You guys have got this stuff all wrong. He's like a master of PR. Don't you get it?! You're being played like a fiddle!
Sweet. Keep it coming Jerry! Retention cash, golden parachutes, stock is up, MSFT bucks raining from heaven. It's getting a whole lot sunnier in Sunnyvale.
Change of control packages range from 4 months to 24 months of severance pay depending on job level; majority of Yahoos will get 6 months. Packages also include continuation of benefits for the same amount of time, 100% vesting of all stock options and RSUs, and a nominal dollar amount for outplacement assistance.
@calistan: You know how to enlighten me.
Its interesting that the Yahoos who contributed most to the strategic fuck up and overall loss of direction will benefit the most and the actual workers will get 4-6 months. The 24 month benefit is ridiculous. It should have been capped at 12.
The biggest winner are the senior execs who will not have to work a single day again with all the millions of options vesting! The rest will get 6-12 mths, not bad. Won't the CFO, COO and CEO's job be a definite change of job description once the takeover happens? So it's guaranteed win for the top 2 levels. Good one!
@stuka - ditto brother
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