Rackspace Technology's board of directors has approved a new "Executive Change in Control Severance Plan," sparking speculation that the Top 250 Public Cloud MSP could be a potential acquisition target. The new Rackspace executive plan surfaced in March 18 filing with the SEC.According to the filing:The plan includes a range of salary, target bonus, health insurance, outplacement and accelerated vesting perks for certain Rackspace executives if the MSP is acquired.Such plans sometimes indicate that a company may pursue an exit, or has been receiving inbound M&A inquiries. But there's no guarantee such activity is brewing at the MSP.A Rackspace representative told Seeking Alpha in an email that the company doesn't have anything to add to filing from March 18 and it doesn't comment on speculation.
"The Plan was adopted to provide standardized severance benefits to current and future Participants in the event of a Qualifying Termination following a Change in Control and, assuming the eligible executive officer elects to participate in the Plan, supersedes any pre-existing severance benefits to which the Participants were previously entitled, including those provided under employment agreements with the Company’s Chief Executive Officer, Chief Financial Officer and other named executive officers."
