3.10 In response to Microsoft’s efforts to acquire the firm, the Yahoo board adopted a “change in-control”

compensation plan. The plan stated that if a Yahoo employee’s job is terminated by Yahoo without cause (i.e., the employee is performing his or her duties appropriately) or if an employee leaves voluntarily because of a change in position or responsibilities within 2 years after Microsoft acquires a controlling interest in Yahoo, the employee will receive 1 year’s salary. Yahoo notes that the adoption of the plan is an effort to ensure that employees are treated fairly if Microsoft wins control. Microsoft views the tactic as an effort to discourage a takeover. With whom do you agree and why? (Appendix)