Sanjay Jha Can Make $104 Million—He Just Has To Turn Around Motorola

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Sanjay Jha Can Make $104 Million—He Just Has To Turn Around Motorola

Motorola (NYSE: MOT) co-CEO Sanjay Jha’s pay package for 2008 is valued at $104.4 million, according to the Associated Press, which crunched the numbers after it got a hold of the company’s proxy filing on Tuesday. But unless there’s a significant turnaround at the struggling handset maker and the current value of its stock price triples, Jha’s package will be much more modest. Jha’s base salary is $484,615 plus $412,096 in perks, including a chauffeur and use of the corporate jet, as well as relocation expenses and company 401(k) matches. The rest of it—$103.5 million—is made up of restricted stock and options. The AP notes that Jha’s options have an exercise price of $9.82 the closing price of the company’s stock on August 4, the date they were awarded. Given that Motorola’s stock closed at $3.30 yesterday, he’s got a huge job ahead of him. As for the spinoff that Motorola has put on hold until it can get rebuild the mobile unit, Jha will get $30 million in cash if it doesn’t go through by October 31, 2010. If the split does happen, all of Jha’s options convert to equity awards in the new company’s stock.

As for co-chief Greg Brown, his pay for 2008—$24.2 million—represented a 149 percent from his 2007 pack package valued at $9.7 million. Like his co-chief, however, the bulk of it is worthless if the mobile unit can’t be made right. Of his total package, $22.6 million are in the form of stock options and restricted stock.

It’s hard to see this turnaround happening. Motorola not only has the deteriorating economy and slowing consumer demand for phones to deal with, but all of the internal issues outlined by Brown earlier this week, when he admitted the company didn’t see the smartphone trend coming. In the last two years, phone sales have plunged 70 percent at the company. Last year, the company lost $4.16 billion, after sales fell 18 percent to $30.1 billion.

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Dianne See Morrison Mar 4, 2009 9:10 AM ET

Posted In: Money, Companies, Motorola, sanjay jha

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Fred F

bhattathiri—
You have a lot of English words strung together, but you say bafflegab.

Sanjay Jhaâs art of Management has been to get rid of all the people who do real work so there's less to manage. Just go to the stores—where are the telephones?

>>Lack of management causes disorder, confusion, wastage, delay, destruction and even depression.

MOT's problem is too much F**king management and not enough engineering—they all got killed off

bhattathiri

Sanjay Jha's art of Management has become a part and parcel of everyday life, be it at home, in the office or factory and in Government. In all organizations, where a group of human beings assemble for a common purpose irrespective of caste, creed, and religion, management principles come into play through the management of resources, finance and planning, priorities, policies and practice. Management is a systematic way of carrying out activities in any field of human effort. Management need to focus more on leadership skills, e.g., establishing vision and goals, communicating the vision and goals, and guiding others to accomplish them. It also assert that leadership must be more facilitative, participative and empowering in how visions and goals are established and carried out. Some people assert that this really isn't a change in the management functions, rather it's re-emphasizing certain aspects of management.

Its task is to make people capable of joint performance, to make their weaknesses irrelevant, says the Management Guru Peter Drucker. It creates harmony in working together - equilibrium in thoughts and actions, goals and achievements, plans and performance, products and markets. It resolves situations of scarcity, be they in the physical, technical or human fields, through maximum utilization with the minimum available processes to achieve the goal. Lack of management causes disorder, confusion, wastage, delay, destruction and even depression. Managing men, money and materials in the best possible way, according to circumstances and environment, is the most important and essential factor for a successful management.

Timm

I am not sure how he says with a straight face that MOT did not see the smartphone coming. They have had Linux based phones in China for years and that same platform was used in many 3G phones that mostly sold in Europe.

They were also members of Symbian, made WinMo phones and owned Good Technology.

Their problem is very simply a lack of focus. At least he admits that this is all self-inflicted.