Siebel intros staff retention programme

Siebel Systems has adopted a programme that aims to retain employees, following speculation "concerning potential acquisitions or takeovers".

"Recent rumours have created a great deal of uncertainty among the company's employees and executives, which could negatively impact employee productivity and company performance," Siebel said in a filing with the Securities and Exchange Commission.

The programme entitles the company's 5,260 employees to benefits in case of a takeover. Workers who get laid off within three months of an acquisition are eligible for three to 18 months of salary and health benefits, have the right to sell their stock options and can claim legal aid in enforcing those benefits, the filing said.

Rumours about Siebel being acquired surfaced last summer, when Oracle chief executive Larry Ellison testified before a federal judge that he had considered buying the CRM company.

Speculation increased further after Siebel had a few weak quarters and earlier this year was forced to fire its chief executive.