Microsoft Approves a Severance Plan for Executives
Recently, Microsoft’s Board of Directors approved a new, severance pay plan for the executives, which is another effort Microsoft’s board made to appease the restlessness of the current executives.
Earlier this week, Microsoft’s Board of Directors had approved stock payouts to ensure none of the key executives leave the company. The two decisions clearly showed that Microsoft executives have been worried about the upheaval in the company personnel, as CEO Steve Ballmer (Steve Ballmer) is retiring soon, and the company is implementing a major reorganizing that has resulted in job losses previously.
Microsoft spokesman said: “The Board Compensation Committee approved a severance plan to ensure continuity of potential leaders, which is a common practice for the entire industry.”
In the Securities and Exchange Commission filing presented by Microsoft to the U.S. Securities and Exchange Commission (SEC) states that fired executives receive a severance payment that is equivalent to one year’s salary and bonus, plus six months of health insurance and other payment or benefits. In return, executives must agree not work for a competitor within a year, and then sign a “non-derogatory” agreement.