From the beginning of last year to the beginning of this year, Qualcomm was facing Broadcom’s hostile takeover. In order to raise the threshold and cost of the acquirer, the company established a policy of providing economic compensation to all employees after the acquisition.
In a document submitted to regulators on Friday, Qualcomm stated that the executive vice president and senior employees received 1.5 times the financial compensation they currently earn plus the annual bonus. In addition, they will receive medical treatment during a transitional period. Insurance benefits.
If the company is transferred, Qualcomm CEO Steve Mollenkopf will receive double salary and bonuses. Prior to this, Qualcomm had not established such regulations for senior executives.
The document shows that this new policy will help ensure that Qualcomm will receive continued attention from company executives and increase their loyalty.
Many large U.S. companies have established similar policies. If corporate control changes, executives can receive financial compensation up to three times the sum of their annual salary and bonus, but many of them include Apple and Alphabet. U.S. large technology companies have not formulated such a policy.
At present, Qualcomm still faces many difficulties, including a decline in market share, and legal disputes with regulatory agencies and key customers Apple's lucrative licensing business.