Siebel tries to keep staff onboard
Published: 27 May 2005 09:40 BST
Software company Siebel, the subject of recent takeover speculation, is trying to prevent an ecodus of worried staff.
In a regulatory filing on Thursday, Siebel said the compensation committee of its board approved the adoption of an employee-retention benefit programme. The programme, which involves separate plans for employees at various levels, comes amid speculation the company might be sold.
"Recent rumours concerning potential acquisitions or takeovers of the company have created a great deal of uncertainty among the company's employees and executives, which could negatively impact employee productivity and company performance," the company said in its filing.
Under the plans, eligible Siebel employees will receive certain severance benefits during the period that begins three months before a change of control and ends one year following a change of control. The plans cover involuntary terminations "without cause" and voluntary resignations "for good reason", according to the filing.
Profits and sales have declined in recent years at Siebel, which provides CRM software. The company has had to contend with competition from enterprise software giant SAP and the rise of Salesforce.com, which made its mark by offering hosted CRM software.
Earlier this month, Siebel's newly appointed chief executive, George Shaheen, said a bright future for the company lies ahead, and that getting there is a matter of becoming leaner, better organised and more focused on big market opportunities.
In its filing on Thursday, Siebel said the compensation committee approved the adoption of the employee retention benefit programme on 20 May. Siebel also said it "remains entirely focused on growing its business, generating profit, adding customer value and serving the long-term interests of its customers, employees and stockholders".
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