Take-Two Enacts Severance Plan for Employees
Reuters is reporting that Rockstar and 2K Games’ parent company Take-Two Interactive is introducing a severance plan for employees fired in the event of a corporate buyout. The plan will give executives up to 1.5 times their salary with bonus for up to 18 months if they are fired within a year of a change in corporate ownership and control. Sadly, non-executive employees will receive only six months of pay.
“The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs,” said Janco Partners analyst Mike Hickey. “They want to keep people focused and give them some sort of support.”
EA recently proposed an acquisition of the company, offering approximately $2 billion total. Take-Two rejected the offer, but seems to be preparing itself for a hostile takeover just in case.