{"id":330503,"date":"2010-02-17T11:49:31","date_gmt":"2010-02-17T16:49:31","guid":{"rendered":"tag:contentnext.com,2010-02-17:article\/419-motorolas-jha-payout-bumped-up-to-38-million-if-break-up-fails"},"modified":"2010-02-17T11:49:31","modified_gmt":"2010-02-17T16:49:31","slug":"motorolas-jha-payout-bumped-up-to-38-million-if-break-up-fails","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/330503","title":{"rendered":"Motorola’s Jha: Payout Bumped Up To $38 Million If Break-up Fails"},"content":{"rendered":"

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More details on Sanjay Jha’s compensation around the Motorola (NYSE: MOT<\/a>) break-up plan<\/a> announced on February 11. And this will be sure to annoy those shareholders complaining<\/a> about the vendor’s exec pay packages: the Co-CEO of the mobile devices and home division could end up with an even bigger payout than before.<\/p>\n

According to the 8-K filed yesterday<\/a>, Jha’s “contingent payment”—that is, the payout he gets if the deal doesn’t go through—has been bumped up to $38 million from its earlier sum of $30 million. The terms of Jha’s equity award—which he would get if the separation goes ahead—have also been changed: he will be entitled to a percentage between 1.8 percent and 3 percent, based on the market capitalization of the new mobile devices\/homes business. Originally his percentage had been a flat 3 percent.\n<\/p>\n

The 3 percent figure will now only apply if the market cap of the new company is equal to or less than $6 billion, according to the documents.<\/p>\n

The equity award would be allocated on a 90 percent\/10 percent split between stock options and restricted stock. The filing also makes clear that Jha cannot receive both the contingent payment and<\/em> equity award. <\/p>\n

Jha will be entitled to the $38 million if the deal doesn’t complete by June 30, 2011. Originally, the deadline had been October 31, 2010.\n<\/p>\n

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