Yahoo Changes Employee-Severance Plan Ahead of Possible Sale
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Yahoo! Inc. is altering the way a change of ownership would affect employee severance plans, another signal the Web portal may be preparing to divest all or part of its operations as it awaits first-round bids on April 18.
The company modified the definition of a change of control as it relates to employee severance plans. Now a change in control would be triggered by a sale of “all or substantially all of the company’s operating business,” Yahoo said in a regulatory filing. Under the old plans, the severance kicked in with a change affecting ownership of the entire company -- something that could be more difficult with so much of Yahoo’s value tied to its multibillion-dollar stakes in Asian companies.