NEW YORK - Motorola Inc.’s co-chief executive, Greg Brown, will be awarded a $5 million shares and options package if its mobile phone unit is taken public with a market capitalization above $2 billion.
Motorola’s market value is about $21 billion based on its share price of $9.48 late Friday (Aug. 29), and its struggling mobile phone unit represents roughly 40 percent of total revenue.
The company, which has been losing business to rivals in the cell phone market, said Brown would get options to buy Motorola stock valued at $3.33 million and be given restricted Motorola stock with a value of $1.66 million.
Brown, who took over as chief executive from Ed Zander at the start of this year, now shares the job with Sanjay Jha, who heads mobile devices. Jha also stands to receive stock awards if the unit goes public next year, as expected.
On Aug. 4, when Motorola announced Jha’s appointment, it promised him 3 percent of the equity of mobile devices if it becomes a separate public entity, of which 90 percent will be in stock options and 10 percent will be in restricted stock.
If the unit does not become a publicly traded company by Oct. 31, 2010, Jha will be entitled to $30 million cash.
Motorola has seen its valuation plummet by more than 60 percent since October 2006, when its mobile devices unit first started to show weak results that caused investors to flee. (Reporting by Sinead Carew; Editing by Braden Reddall) (52RD.com) |
