Take-Two Establishes Takeover Severance Packages
Take-Two Interactive [http://www.take2games.com/] has set up a contingency severance plan to protect its employees in the event of a takeover.
Documents filed with the Securities and Exchange Commission [http://www.sec.gov/] show the company has established a package which will see non-executive employees receive up to six months salary if they lose their job without cause within a year of a company takeover. Company executives will receive up to 18 months salary plus bonuses, although those figures don't apply to Strauss Zelnick, chairman of Take-Two, and other members of the top management team, as they have separate agreements in place.
Mike Hickey of analyst firm Janco Partners told Electronic Arts' [http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0735497520080307] ongoing efforts to acquire the company. "[EA's] bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," he said. "They want to keep people focused and give them some sort of support."
EA's Grand Theft Auto IV [http://www.escapistmagazine.com/news/view/81720] is released in April.
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Take-Two Interactive [http://www.take2games.com/] has set up a contingency severance plan to protect its employees in the event of a takeover.
Documents filed with the Securities and Exchange Commission [http://www.sec.gov/] show the company has established a package which will see non-executive employees receive up to six months salary if they lose their job without cause within a year of a company takeover. Company executives will receive up to 18 months salary plus bonuses, although those figures don't apply to Strauss Zelnick, chairman of Take-Two, and other members of the top management team, as they have separate agreements in place.
Mike Hickey of analyst firm Janco Partners told Electronic Arts' [http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0735497520080307] ongoing efforts to acquire the company. "[EA's] bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," he said. "They want to keep people focused and give them some sort of support."
EA's Grand Theft Auto IV [http://www.escapistmagazine.com/news/view/81720] is released in April.
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