Video game maker TakeTwo has adopted a new change-in-control severance plan, as it faces a hostile bid from larger rival Electronic Arts (NSDQ: ERTS). Under the new plan, the CEO would receive 1.5x his salary for 18 months following termination, while other executives would get a smaller multiple for a shorter duration. Below the executive level, the rank and file will get two weeks of severance for every year they’ve been at the company, up to 26 months. Any layoffs planned by EA get more expensive under this plan, but the plan isn’t nearly as generous as the plan Yahoo has adopted, so it’s not as much of a poison pill. Instead, it looks like a plan to ease the concerns of employees. More details in the filing.

In a separate filing, the company posted a letter from Chairman Strauss Zelnick and CEO Ben Feder explaining the new plan: “Last week we informed you of EA’s unsolicited proposal to acquire Take-Two, which our Board rejected. Although there is no update on the proposal, we have been working to substantively address the understandable concerns that some of you may have as a result of the proposal. Therefore, we have established a formal severance plan for the benefit of our employees, and are publicly announcing that plan today. Please note: we are not assuming that any change in control will occur or, if there were a change, that any positions would be affected.

• Yahoo Boosts Severences For All Full Time Workers
• Updated: Electronic Arts Makes A $2 Billion Cash Bid For Take-Two; TT Rejects Again, But Door Open