In response to Microsofts efforts to acquire the firm, the Yahoo! board adopted a change-in-control compensation plan.
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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 due to 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 severance 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?
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Yahoos Argument Fair Treatment They claim the plan ensures employees are compensated if their jobs a...View the full answer
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