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PeopleSoft Takeover Compensation

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Web www.software-risk.co.uk

The battle for PeopleSoft has intensified again. If they faced mass sackings following a takeover, workers would receive up to $200m in compensation.

The move comes on top of a $2bn guarantee by PeopleSoft to existing customers in the event of a takeover. However this has to be balanced with a major win in court against the Department of Justice.

Executives at the company, targetted by Oracle would benefit most. They would receive up to two years pay and bonuses. Normal workers will only receive 12 weeks pay.

Compensation can be seen two ways. Cynics will say that it is to stop employees jumping ship during the bid. PeopleSoft counter by saying that it is for loyalty during 15 months of the bid.

Indeed Oracle has said that most of the staff will be shed if it wins. The current value of the bid is $7.7bn.

The new compensation structure was revealed in a filing to the Securities Exchange Commission (SEC).

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