WASHINGTON -- MCI Communications Corp. set aside $420 million to persuade executives and other employees from leaving amid the company's acquisition by WorldCom Inc.
WorldCom, a Jackson, Miss., telecommunications company headed by Bernard Ebbers, is acquiring MCI for $41.8 billion. The company outbid GTE Corp. and British Telecommunications PLC for the right to purchase MCI.
The uncertainty created by bidding wars can spur executives and employees to seek employment elsewhere. And increased competition in the U.S. phone industry has prompted many MCI rivals to seek its talented managers.
MCI, seeking to prevent defections and to smooth the transition, has created three "retention bonus" pools, according to documents filed with the Securities and Exchange Commission.
The $420 million would provide MCI with enough money to award to each of the 55,000 people employed by the company at Dec. 31, 1996. But it's unlikely that the company would distribute the money to everyone.
A spokesman declined comment on the size of the bonuses that MCI plans to award individuals.
Pub Date: 11/29/97