What does Dr. Sanjay Jha get for heading Motorola’s cell phone division? - www.newpostonline.com - August 4, 2008

What does Dr. Sanjay Jha get for heading Motorola’s cell phone division?

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August 4th, 2008
Business

Motorola has named Sanjay Jha, the erstwhile chief operating officer
of Qualcomm, to head its handset division. Experts say that its a smart
choice for Motorola specially when its cell phone business is not doing
well. Jha’s job will be to re-gain the lost market share as well as
increase the market capitalization.

But
what does Dr. Sanjay Jha  get in return? What will be his compensation
package?  Well, the press release  says” Motorola has entered into an
employment agreement with Jha, the material terms of which are
described in a Current Report on Form 8-K that the Company will file
with the Securities and Exchange Commission. As part of Jha’s equity
compensation package, Motorola will grant certain stock options and
restricted stock units pursuant to the inducement award exception to
the stockholder approval requirements under the New York Stock Exchange
rules as described in the Form 8-K.”

However, AP
reveals that Jha will receive 3.7 million restricted Motorola stock
units, worth approximately $35 million at Monday’s stock price, and
options to buy 16.6 million shares. If the spin-off of the handset
division is completed, those awards would apply to the new company’s
stock, and Jha would receive additional stock and option awards to give
him a 3 percent stake in the company.

If the spin-off does not happen before Oct. 31, 2010, Jha will get $30 million in cash.

A look at Sanjay Jha’s profile at Forbes’
tells that his Qualcomm cash compensation (FY Septemeber 2007) was $
11,347, 896. However, his stock options totalled $30,054,664.