Yahoo Adopts New Severance Plans

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The Associated Press is reporting that Yahoo is adopting severance plans in case Microsoft takes over. Employees will get pay and medical benefits for up to 24 months under the plan. What the!?! That is pretty impressive for your average, every day employee....what kind of package would you guys get if fired today?

The plans cover all of Yahoo's full-time employees, including its top executives, for two years after a change in control of the company. Workers who lose their job without cause — or quit for good reason as Yahoo defines it — would continue to receive their salary and medical benefits for four to 24 months, plus reimbursement for "outplacement services" for two years.
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This "Golden Parachute" is designed to be a poison pill, to discourage Microsoft from purchasing Yahoo because of the increased liability. However these things can work both ways. If the deal falls through, and Yahoo is left to flounder on its own, you can bet that a lot of people will be looking to cash in on that golden parachute which will only drive the nails deeper into Yahoo's coffin.
 
JethroXP said:
This "Golden Parachute" is designed to be a poison pill, to discourage Microsoft from purchasing Yahoo because of the increased liability. However these things can work both ways. If the deal falls through, and Yahoo is left to flounder on its own, you can bet that a lot of people will be looking to cash in on that golden parachute which will only drive the nails deeper into Yahoo's coffin.
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You know, I thought the same thing. . .
 
two years after a change in control of the company.
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If they are not bought out, it does not go into affect.

It's the perfect plan for the present management. As long as they stay, it does not go into affect. If someone forces them out, they get 2 years pay, plus their other golden parachute bennies.


Yahoo is so screwed. No matter what happens, they will come out of this mess in a weaker position.

Don
 
whhoops just told my investor to reinvest my entire before tax defferial in yahoo stock
 
Besides, what is there to stop the new management from unadopting the severence plans once they are in control? I am no business lawyer, but as far as I know, a company policy is only as good as the paper it is written on. You are not guaranteed anything other than safe working conditions, minimum wage, and protection from variouos forms of discrimination.

Don
 
why in the world did you do that.. it soared on a potential microsoft buyout... Now that microsoft isn't buying them.. it should began to sink again..
 
I really don't see Yahoo going anywhere good. They just don't seem to have a strong sense of business and assume their sense of pride is enough to keep a company afloat.
 
Darkest Daze said:
I really don't see Yahoo going anywhere good. They just don't seem to have a strong sense of business and assume their sense of pride is enough to keep a company afloat.
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I think the word that fits here is "hubris". This severance package probably won't be enough to dissuade Microsoft, but it certainly might be enough to keep any other companies from coming to Yahoo's rescue.

It would seem that Jerry Yang's biggest concern right now is how to prevent Microsoft from taking over "his" company. But he seems to have forgotten that it's not his anymore, he just runs it, and in reality it belongs to the shareholders. I wonder how they'll feel about Golden Parachutes being given away like it was fire sale.
 
DonDon said:
Besides, what is there to stop the new management from unadopting the severence plans once they are in control? I am no business lawyer, but as far as I know, a company policy is only as good as the paper it is written on. You are not guaranteed anything other than safe working conditions, minimum wage, and protection from variouos forms of discrimination.
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I think one would assume it would be a condition of sale.
 
Well, at least the innocent employees will come out of this with something good.

Yahoo as a company, not so much.
 
Damn!, I got a whole 2 days(Plus 1week vacation I never took) when I left one of my jobs but other than that it has been down to the SECOND that I clock out.

Even the 4month one is absolute drool worthy(especially if you can grab another job right away)
 
I got very lucky when I was laid off this past July. I had worked for the company for over 6 years and had 12 weeks of severance. Unfortunately, I had to use all of it before I found my current position, but at least it kept us paying the bills that entire time.

At my current company, I have absolutely no severance benefits... :(
 
Wow, this is ridiculous. Talk about a golden parachute. If Microsoft wasn't going to raise their bid, they certainly aren't going to offer more now.... let alone keeping the offer open.

Talk about a golden parachute.

I must say, I do like this self serving plan, typical of executives:
The plans cover all of Yahoo's full-time employees, including its top executives, for two years after a change in control of the company
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Maybe it is just me, but if Microsoft wanted them enough to take them over in a hostal take over wouldn't they have tried to offer them a little more money first?

I don't see why Microsoft would want/need Yahoo that badly that they would have to resort to a take over of the company.
 
Exavior said:
Maybe it is just me, but if Microsoft wanted them enough to take them over in a hostal take over wouldn't they have tried to offer them a little more money first?

I don't see why Microsoft would want/need Yahoo that badly that they would have to resort to a take over of the company.
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They already did offer more than a generous amount of money....
 
Ockie said:
They already did offer more than a generous amount of money....
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Yes I am aware of that. I was just trying to say I would have thought they would have offered a little more first before going into hostal takeover mode. If they went into that mode at all.

However I guess I haven't been paying enough attention to this story from the start and was not aware that Microsoft was already stated that they were going to get Yahoo either by buying them out or with a hostal takeover. Thus I guess they are planning on a hostal takeover and thus the money offer was a chance to go easily before they ripped the ground out for under them.
 
wtburnette said:
I got very lucky when I was laid off this past July. I had worked for the company for over 6 years and had 12 weeks of severance. Unfortunately, I had to use all of it before I found my current position, but at least it kept us paying the bills that entire time.

At my current company, I have absolutely no severance benefits... :(
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My wife was just layed off from Pizza Pizza after near 8 years.We were given 16 weeks
plus 17 days of accumulated vacation pay she never used.Luckally Direct Energy just hired her full time,for more money and much,much better working conditions and benefits.

:eek:
 
Ockie said:
Wow, this is ridiculous. Talk about a golden parachute. If Microsoft wasn't going to raise their bid, they certainly aren't going to offer more now.... let alone keeping the offer open.

Talk about a golden parachute.

I must say, I do like this self serving plan, typical of executives:
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Did you notice this?

Bloomberg.com said:
Full-time employees would get at least four months of severance pay and executive officers will get 24 months, Sunnyvale, California-based Yahoo said yesterday.
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http://www.bloomberg.com/apps/news?pid=20601103&sid=aRwkpuLcOkgE&refer=news

So the 2 year package is *only* for the executives, the worker bees get four months, which admittedly is still nice, but lavishly nice like 2 years.

I was laid off from a Silicon Valley startup in 2001, I only got 10 days of severance. It took me 6 weeks to find a new job, which seemed like an eternity. Even though 4 months isn't as nice as 2 years, the average Yahooer will be well off if they ever get to take advantage of this.
 
With such a public fight, it's just going to drag Yahoo's brand equity right into the crapper.
 
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