Yahoo said Wednesday that it has settled a shareholder suit and altered a severance plan that was viewed as an obstacle to a takeover.
In a filing with the Securities and Exchange Commission (Techmeme), Yahoo said it amended a generous severance plan that would have been triggered under a change in control. The previous plan, which was adopted in the thick of the Microsoft takeover saga, allowed any employee to garner severance pay if he was terminated (or left for good reason) within two years of a change in control. The lawsuit against Yahoo was brought by two Detroit pension funds.
Yahoo detailed the following changes:
Add it up and it appears Yahoo is removing its severance roadblock to a potential deal. Also see: