Motorola Ups Potential Severance Package for CEO

Correction: Motorola personnel story

In a story and headline May 28 about Motorola Inc., The Associated Press reported erroneously that the company has increased the severance package that co-CEO Greg Brown can walk away with if he does not become the sole chief executive next year. In an amended employment agreement, Motorola increased the value of stock options Brown will receive on the separation of the company into two parts. In the separation, Brown will be left running Motorola's Enterprise Mobility and Networks units.

The amended agreement also pushed back the date in which Brown can walk away if he does not become sole chief executive of the company.

Motorola ups potential severance package for CEO

Motorola ups potential severance package for co-CEO Greg Brown if he is not made sole chief

Staff
AP News

May 28, 2010 18:18 EDT

Motorola Inc. has increased the severance package that co-CEO Greg Brown can walk away with if he does not become the sole chief executive of the company next year, according to a securities filing made Friday.

Motorola is planning to split off its cell phone and set-top box business into a separate company led by co-CEO Sanjay Jha. Brown would be left running the Enterprise Mobility and Networks units. The split was delayed last year because of the sinking economy. Motorola now expects to complete the spinoff in the first quarter of 2011.

If the plan doesn't go though, according to the filing made Friday, Brown could choose to receive stock options worth $8.3 million, up from $3.3 million previously, as well as restricted stock worth $4.2 million, up from $1.7 million.

Motorola has also pushed back the date that Brown can decide to leave with the package to Sept. 1, 2011 from Jan. 1, 2011.