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A simple resignation, rarely seen when executives are forced out over company performance, would bring Mr. Kelly about $5.5 million from faster vesting for some equity awards.
Yahoo said that the enhanced benefits, which include accelerated vesting for stock options, were intended, in part, to prevent an exodus of employees.
In that four-year collective bargaining agreement, which went into effect after the 1981 strike, vesting for full pension benefits was reduced from 4 years to 43 days of major league service, and vesting for full comprehensive medical benefits was reduced from four years to one day of major league service.
Based on disclosures in the company's March proxy filing, much of Mr. Kelly's payout is likely to come from accelerated vesting for stock and option awards: $5.5 million to $14.2 million, depending on how his departure is classified.
They also include accelerated vesting for all stock options, restricted stock units and other equity-based awards, and reimbursement for outplacement services up to a maximum of $15,000.
A 2-to-1 decision of the United States Court of Appeals for the Federal Circuit overturned the ruling on the ground that the closest Supreme Court precedent, a 1980 ruling on judicial pay in the case of United States v. Will, treated judicial pay increases as not "vesting" for constitutional purposes until judges had started receiving the money.
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