Microsoft (NSDQ: MSFT), while publicly posturing that it could walk away from the deal, has lined up its proxy slate of directors in case it comes to that: The list has 10 nominees and three alternates, reports WSJ, citing sources. These include former Nextel Partners CEO John Chapple, former Grey Advertising CEO Edward Meyer, former Overture Services COO Jaynie Studenmund and former Adelphia CFO Vanessa Wittman.

Meanwhile, the story also highlights an understandable nervousness among MSFT’s own employees about the deal, and the unrest is focused in two areas: people in Microsoft’s online services group (including MSN) worried about their future; the other divisions believe the task of absorbing Yahoo (NSDQ: YHOO) will divert top management’s attention and other resources away from other pressing challenges. But either way, that may not deter Ballmer and team from pressing ahead.

• Ballmer: Microsoft Can Live Without Yahoo