Motorola Updates Co-CEO Greg Brown’s Compensation; Rewards Mobile Devices Sale

By
Tricia Duryee
- Fri 29 Aug 2008 12:01 PM PST

http://www.moconews.net/entry/419-motorola-updates-co-ceo-greg-browns-compensation-rewards-mobile-devices/

Motorola (NYSE: MOT) updated the compensation package of Greg Brown, the company’s Co-CEO and head of Motorola’s Broadband Mobility business, according to a document with the SEC today.
The new version aligns his interests tightly with shareholders,
particularly when it comes to the sale of the mobile devices division.
For instance, the agreement only rewards Brown if and when the mobile
devices business becomes a separate publicly traded company with a
minimum valuation and maintains a certain stock price for the remaining
Motorola shares.

Before counting stock options and awards, Brown will be making no less
than about $10 million in 2008 comprising from his Base Salary, Annual
Bonus, 2008 Special Bonus and long-term incentive plan. And, then his
salary may grow from there based on how his equity will be treated in
the event that Motorola is successful at spinning off its mobile
devices division and it becoming a publicly traded company. For
instance, in the event Motorola spins off the division and it becomes
public, the company will have to maintain a market capitalization of at
least $2 billion for Brown to have the option to purchase shares of
Motorola common stock of a value of $3.33 million and restricted stock
of $1.67 million. After that, both will have certain vesting schedules.

Brown gets other perks, like a minimum of four weeks vacation and
access to the company’s airplane for “security purposes for business
and personal travel,” however, the package is unlikely to surpass the
compensation of Motorola’s other Co-CEO Sanjay Jha, who is the recently
hired head of the company’s struggling handset division. Jha is estimated to have a package worth as much as $94 million, including restricted stock, options, base pay and a special payment.

• Motorola’s New Leader Estimated To Make About $94 Million In Compensation