Motorola’s Jha to be compensated more if the company doesn’t split
Motorola, Mobile phone manufacturer's India-born chief Sanjay Jha's compensation has been augmented to $38 million if by 2011, the plans to split the company into two does not occur.
Following the restructuring, Motorola has modified the terms of compensation for co-chief executive Jha, including a bigger pay check for his services.
If the company does not succeed in its separation filed with Securities and Exchange Commission, Jha would be eligible to receive a payment of $38 million, up from $30 million, wire services report. Jha would get an equity award ranging 1.8-3% of the new entity's outstanding shares, if the company splits and other conditions are met with.
After a success at Qualcomm, Jha has been unable to halt the phone company's free fall in 18 months as Motorola's phone chief, which has become one of America's most stunning, slow motion business collapses since then. Motorola also said it extended its employment agreement with Jha from October this year to June 2011.
Motorola had announced that it is planning to split into two independent, publicly traded companies by the first quarter of 2011.