According to the filing with regulators on December 22 last year, Qualcomm developed a measure of termination compensation that applies to most employees who are executive VPs after a change in ownership of the company, and if terminated without good reason or with "good reason" Workers will be granted compensation for termination of their job. 'Sufficient reason' includes a substantial reduction in pay or the relocation of the workplace to a distance of 81 kilometers.
Qualcomm also expanded its definition of 'change of ownership' to include the replacement of the majority of board members in addition to the sale of the company.
A Broadcom representative said the company still hopes to negotiate the acquisition of Qualcomm Qualcomm representatives did not comment.
After the acquisition was rejected by Qualcomm, Broadcom began to 'flirtatious' directly with Qualcomm shareholders and asked them to elect new directors at the annual shareholders' meeting in March. Broadcom nominated 11 Qualcomm directors 18 days later and Qualcomm developed a new Turnover compensation program.
Qualcomm said in a regulatory filing that the severance pay scheme is a retention tool designed to ensure 'the continuity of employee work and the employee's concentration on work'. Eligible employees receive a one-time compensation based on salaries, positions and length of service According to the paper, employees receive parture compensation between the equivalent of 4 weeks salary (lower-ranking employee) and 52 weeks salary (senior vice president).
The plan will raise the cost of a large-scale acquisition of Qualcomm's organizational structure by the acquirer.It is generally believed that once the successful acquisition of Qualcomm, Broadcom CEO Hoke Tan (Hock Tan) may be the former 'major surgery'.
For the acquisition of the company, Hawk Tan has always been the strategy to lay off, spin-off or closing down the loss of unprompted business unit.As the CEO of Avago, he took over the Broadcom, driven away the latter CEO, took a few months to strip Wireless infrastructure and Internet of Things business, to create the current Broadcom.
Yahoo acquired a similar severance payment plan after its malicious takeover in 2008, saying it aims to retain employees and raise shareholders' value. Carl Icahn, the billionaire investor who tried to dominate Yahoo, criticized Yahoo Severance payment plan, called the poisonous pill of the potential acquirer, and settled the severance payment plan six months after Yahoo settled the shareholder action in connection with the company's refusal to takeover.
Broadcom last November proposed a cash + stock acquisition Qualcomm program, the price of 70 US dollars per share. Today's regular trading, Qualcomm shares rose slightly by 0.7%, the closing decline of 0.02%, to close at 65.26 Broadcom shares once fell to 262.32 US dollars, a decrease of 2.3%.