The company’s new employee retention scheme gives employees between three and 18 months worth of severance pay and a similar amount of health coverage, if Siebel’s hypothetical acquirer lays them off, moves their office, or cuts pay.

Recent rumors concerning potential acquisitions or takeovers of the company have created a great deal of uncertainty among the company’s employees, Siebel said, which could negatively impact employee productivity and company performance.

Siebel became the target of acquisition rumors on several occasions over the last couple of months, following its announcement of poor software sales in its first quarter. Oracle was thought of as a potential acquirer.

Four levels of compensation will be offered to employees, depending on whether they are rank-and-file, vice presidents, directors, or senior executives.

Not surprisingly, Siebel’s top execs will get the heaviest parachute if the company falls to a buyer, with a payoff equivalent to 18 months’ earnings. VPs get a year, directors six months. Everybody else gets a quarter’s worth.

Employees will get healthcare benefits for the same periods, and immediate acceleration of their stock options. Siebel said it has 5,260 employees that will be covered by the plan.

Workers will be able to claim their severance if Siebel’s new owner terminates them without cause, or if they quit because their potential earnings are reduced by 10%, benefits are otherwise reduced, or they are forced to relocate more than 50 miles.

For senior executives, they can also cash out if their job title is changed to something less senior, they are told to report to somebody less senior than they currently do, or if they have a reduction in responsibilities.

If anything, the introduction of the retention plan now could suggest that Siebel is not currently in talks to be acquired, unless it believes its would-be acquirer is quite happy to be saddled with these potential liabilities.

The company can terminate the plan whenever it wants, but not in connection with Siebel being acquired, even if it is a friendly takeover.