Yahoo (YHOO) employees waiting to find out if they still have a job want to know: Will CEO Jerry Yang put Yahoo’s money where his mouth is?
Jerry helped block Microsoft’s (MSFT) efforts to buy Yahoo for $31 per share when, in February, he and Yahoo’s board created a change in control provision that would have provided 4-24 months severance pay, health care, and full equity vesting for almost any Yahoo employees laid off by Microsoft after the acquisition.
So now that Yahoo’s stock is worth $12, and the company itself plans to lay off 10+ per cent of its workforce, does Jerry plan to provide the same generosity he and the board demanded of Microsoft? A Yahoo employee tells us the question about “the juicy severance package” is “top of mind” at the company’s Sunnyvale headquarters. He says the mood is not optimistic.
The 25% or so of Yahoos against MFST are now beginning to think the $31 offer was pretty sweet. Top of mind, however, is the juicy severance package (4-24 months salary full equity vesting & health care) promised if MSFT fired people. 4 months for lowest level hourly peeps, 6 months or 12 months for most, and 24 (barf) for executives, as if they need it. Now it looks like Yang and company are firing at least 10% with no such guarantees. The buzz has been employees will get 60 days; or the minimum required by law depending on the state.
(Photo by clofresh)