Thursday, February 18, 2010

Motorola’s Jha to get $38m if co doesn’t split

Mobile phone maker Motorola’s India-born chief Sanjay Jha’s compensation has been increased to $38 million if the plans to split the company into two do not occur by 2011. Motorola has modified the terms of compensation for co-chief executive Jha, including a bigger paycheck, if the restructuring falls through.

It has also changed how much he could receive in stock compensation if the company succeeds in its separation, a Motorola filing with the Securities and Exchange Commission said. Jha would be eligible to receive a payment of $38 million, up from $30 million, if Motorola does not go ahead with its plan to separate the mobile phone and set-top box business into a separate entity by June 30, 2011.

However, if the company splits and other conditions are met, Motorola said Jha would get an equity award ranging 1.8-3% of the new entity’s outstanding shares, depending on its market value after the split.

Jha was earlier entitled to get a fixed 3% award after the split as per his previous agreement. The filing also said Jha would be eligible to receive a long-term incentive plan award.

Source : http://timesofindia.indiatimes.com/biz/india-business/Motorolas-Jha-to-get-38m-if-co-doesnt-split/articleshow/5585770.cms

No comments: