September 19, 2004, 6:30 PM PT
PeopleSoft has quadrupled the size of the minimum severance package for its employees and doubled it for executives, in the wake of a federal court's boost for Oracle's hostile takeover bid.
"The (PeopleSoft) compensation committee...approved amendments to the company's severance policies and plans in recognition of the key role employees have played over the past 15 months and are expected to continue to play, and to enhance employee retention by addressing employees' concerns regarding their long-term employment prospects," according to a filing with the U.S. Securities and Exchange Commission.
The severance package for PeopleSoft employees will now include a minimum of 12 weeks of base pay, plus health care coverage for a similar period. Previously, the minimum was two weeks' pay for each year of service, but the package capped out at three months.
PeopleSoft executives, excluding Chief Executive Craig Conway, will now receive between one-and-half times and twice their base salary and bonus, in addition to two years of health coverage.
Employees working overseas will receive either the new severance packages or the amount that is called for under their respective countries' laws, whichever is greater, according to the SEC filing.
PeopleSoft also recently for employees, in the event that ownership of the company changes.
On Sept. 9, a judge for the U.S. District Court for Northern California issued a long-awaited ruling in the government's antitrust case against Oracle, in which the U.S. Department of Justice had sought to block the company's hostile bid for PeopleSoft. A judge with its takeover bid.
Oracle, however, still needs approval from . And the database giant also needs to overturn .
Under the severance package policy, the packages could be triggered if employees and executives are terminated as part of a change in control at the company.
PeopleSoft representatives could not immediately be reached for comment.