Motorola Writes Big Check To Parting Handset Chief
What a difference a week makes. Motorola’s (NYSE: MOT) CEO Greg Brown said last week he was conducting a formal executive search for the company’s mobile division to replace Stu Reed, who would remain at the company. Yesterday, Reed’s tenure abruptly ended when Motorola announced he was leaving the company April 4. Today, we learn of the big news—Reed’s parting gift.
Motorola will pay Reed a lump sum of $1.5 million after agreeing to release the company from all legal claims arising out of his employment. Following that, he will continue to receive his regular salary for that rest of the year, for a total amount of $445,479. The total is nearly $2 million, and that’s before you take into account his incentive plan and stock rewards that he will continue to be eligible for in 2008, as outlined in a public document filed today with the SEC.
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Comments (2)
Mar 12, 2008 6:16 AM
not bad money for tanking the company
even more than the CEO he was the specific individual in charge of the division which screwed up massively - even if he inherited some of the mess there is no evidence of anything but confused non-strategies from his tenure…
i wonder if any of the other big manufacturers are looking to pay out millions for someone to lose them 50% of their market share - i’m game to give it a try if so
May 27, 2008 3:18 PM
Come on folks. Zander handed him the reins as the wagon headed over the cliff. He’s the fall guy. Others have gotten five million or more to go away after filing suit. He did MOT a favor.