Skype skips out on execs’ payout in midst of Microsoft purchase, report says
Sources tell business news agency of 6 firings at video company
- By Washington Technology staff
- Jun 20, 2011
Skype Technologies SA, the Internet-calling service being bought by Microsoft Corp., reportedly is firing senior executives before the deal closes, a move that reduces the value of their payout, three people familiar with the matter have told Bloomberg News.
Four vice presidents, the chief marketing officer and the human resources director were among those dismissed from the Luxembourg-based company, the sources, who requested anonymity because the departures have not been made public, told Bloomberg.
The timing of the dismissals means stock options will be worth less than if the executives stayed until the closing of the $8.5 billion deal.
When a company gets bought, compensation is often tied to the purchase price, Neil Sims, a managing director at search firm Boyden, told the business news agency. “But if you’re eliminated unceremoniously, without a package and without some negotiation, you could certainly lose unvested options.”