Mitchell Pollack & Associates PLLC
Your Solution Starts With A Phone Call
866-400-7388

Blockbusters Verizon and Yahoo deal sheds light on severances

On Monday July 25, it was announced that global media giant Verizon purchased technology giant Yahoo's Internet search, media, communications and advertising business to the tune of $4.83 billion dollars. The transition is expected to occur in the first quarter of 2017. Though it is uncertain how this acquisition will affect users and customers of either company, the news has shed a light on severances, most notably that of Yahoo chief executive officer, Marissa Mayer.

Mayer, previously an executive for Yahoo's rival Google, joined in 2012 to serve as chief executive. Following the announcement of the sale, Mayer sent a memo to employees stating her intention to stay with the company. Mayer does have, however, a $55 million dollar severance compensation package if she leaves the company following the change in ownership.

Severance packages are often included in employment contracts as a way to give a recently terminated employee some financial relief at the time of a job loss. In return, the severance agreement often includes terms stating that the employee will not sue the employer for unlawful termination. While the severance package often includes a lump sum, it may also include an extension of health benefits beyond the time of employment.

It is important to note that severance packages are not required by law, and not every company offers a severance package. If people are involved with employment negotiations, it is important to understand the terms of their employee rights and their employment contract, which may include a severance package, something that may greatly benefit them in the future if the situation changes.

Source: Variety, "Yahoo CEO Marissa Mayer Post-Verizon Deal,'I'm Planning to Stay'," Todd Spangler, July 25, 2016

No Comments

Leave a comment
Comment Information
Email Us For A Response

Ready To Resolve Your Legal Issues

You have a business to run. The team at Mitchell Pollack & Associates is ready to tackle your legal needs so you can focus on your responsibilities. Call 866-400-7388 or use our online contact form to schedule a meeting.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Tarrytown Office
150 White Plains Road
Suite 310
Tarrytown, NY 10591

Toll Free: 866-400-7388
Phone: 914-610-3418
Fax: 914-332-9191
Map & Directions

Mahwah Office
220 Franklin Turnpike
Mahwah, NJ 07430

Toll Free: 866-400-7388
Phone: 914-610-3418
Fax: 201-529-4400
Map & Directions