What better incentive is there than the kind printed on green cloth-paper, adorned with the faces of past US presidents? Motorola is offering their co-CEO Sanjay Jha a 9-figure payday, with the stipulation that they’ll need to bring Motorola back from the depths of despair before cashing out. The report of a strongly incentive-based pay package follows on Greg Brown’s recent admission of his and Motorola’s lack of foresight in the smartphone market.
The AP is reporting that Sanjay Jha received a 2008 pay package valued at $104.4 million. On the surface, that figure might sound exorbitant, especially given Motorola’s recent financial losses, but closer analysis reveals that Jha will have to work mighty hard to get at that gigantic paycheck. Motorola gave Jha the bulk of his 2008 salary in the form of restricted stock and options. Jha’s base salary is a more modest $484,615 plus $412,096 in perks (including a chauffeur, use of the corporate jet, relocation expenses and 401(k) matches), leaving $103.5 million in stocks and options that may turn out to be worth far less if Motorola’s stocks don’t triple their current value.
If Motorola’s mobile division isn’t spun-off and sold by October 31, 2010, Jha will see his restricted stocks and options traded for a cool $30 million – a scenario that seems all that more likely since Motorola decided to put their spin-off plans on ice until the mobile division can be rehabilitated. Should the handset manufacturing arm of Motorola turn itself around and find a viable buyer, Jha’s options will be converted in equity awards in the new company.
Likewise, co-CEO Greg Brown has been given $22.6 million in restricted stocks and options as part of his $24.2 million 2008 pay package. Brown’s base salary may be greater than Jha’s, but his total pay package is decidedly less – and that’s assuming Motorola’s stocks can triple-up.
[Via: MocoNews]