Peoplesoft staff get golden goodbye

In the event of a takeover, please cash this cheque...

By John Oates • Get more from this author

Posted in Financial News, 20th September 2004 13:12 GMT

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PeopleSoft staff will get bigger and better severance packages in a move the company insists is to reward people for work put in, not an attempt to stop people jumping ship in the future. The deal would likely increase the cost of any takeover by Oracle.

Staff are now entitled to 12 weeks pay and health coverage, compared to two weeks for each year of service, up to maximum of three months, previously. People working outside the US will get the new package, or the legally required minimum in the country where they work, whichever is larger.

Senior executives will get between one-and-a -alf and twice their annual salary and bonus and two years of health coverage. The more generous severance packages come into force if staff are made redundant as a result of a takeover of the company.

PeopleSoft is still fighting the hostile takeover attempt by Oracle. PeopleSoft is having its annual customer event in San Francisco this week - which some observers are predicting will be the last.

US courts recently ruled in favour of the takeover but Oracle must still convince European regulators the deal will not be anti-competitive. ®