The severance plan will give executives up to 1.5 times their salary with bonus for up to 18 months if they are fired within a year of a change in corporate ownership and control. Non-executive employees will receive up to six months in salary.

Late last month, Electronic Arts proposed an acquisition of Take-Two at a price of $26 per share, or approximately $2 billion total. Take-Two summarily rejected the offer, suggesting that the bid was "highly opportunistic," and made in an attempt to take advantage of the upcoming April 29 release of Grand Theft Auto IV.

"The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," said Janco Partners analyst Mike Hickey. "They want to keep people focused and give them some sort of support."