Yahoos Sweat: Will We Get That Same Fat Microsoft Severance?

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)

See Also:
Yahoo Firings In Perspective: Company Shrinking To Q2 Size

Going Rate For Terrible Yahoo M&A Advice? $37 Million A Quarter

Jerry Yang’s Layoff Memo

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