Qualcomm ensures worker payments if Broadcom shakes it up

(Jan 11): Qualcomm Inc, as it fights what would be the largest technology takeover, is guaranteeing that any acquirer would have to pay up if existing employees are fired after a corporate change of control.

The chipmaker unveiled a severance plan that applies to most employees below the rank of executive vice president if the company’s ownership changes, according to a Dec 22 regulatory filing. The workers would get a payout if they are fired without cause or if they choose to leave for “good reason.” That would include a material reduction in their salary or a move of their main workplace to a location more than 50 miles away.

Qualcomm, the target of a US$105 billion ($140 billion) hostile takeover by rival Broadcom, also expanded its definition of a “change in control” to include a replacement of a majority of its board members, in addition to a sale.

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