8-KMaterial AgreementsExhibits & Filings

Motorola Solutions, Inc. 8-K Report, Material Agreement (Apr 19, 2005)

Filed April 19, 2005For Securities:MSI

Summary

This 8-K filing from Motorola Solutions, Inc. (then Motorola, Inc.) on April 18, 2005, primarily announces the approval and establishment of the Motorola Long Range Incentive Plan (LRIP) of 2005, effective January 1, 2005. This plan is designed to incentivize key executives, including Corporate, Senior, and Executive Vice Presidents, as well as the CEO and COO, to drive operational improvements and profitability through multi-year performance cycles. Investors should note that the LRIP is structured around cumulative economic profit and sales growth targets over three-year performance periods. Awards are tied to achieving these goals, with a maximum payout of twice the target award. Furthermore, a minimum threshold for total shareholder return relative to a defined comparator group is required to avoid partial forfeiture of awards, aligning executive compensation with shareholder value creation.

Key Highlights

  • 1Motorola, Inc. established the Long Range Incentive Plan (LRIP) of 2005, effective January 1, 2005.
  • 2The LRIP aims to motivate key officers to enhance operations and profits.
  • 3The plan features multi-year performance cycles, with the first cycle covering January 1, 2005, to December 31, 2007.
  • 4Eligible participants include Corporate, Senior, and Executive Vice Presidents, as well as the CEO and COO, subject to Compensation Committee approval.
  • 5Participant target awards are a percentage of base pay, with a maximum earned award of two times the target.
  • 6Awards are based on achieving cumulative economic profit and sales growth targets.
  • 7Awards may be subject to forfeiture if Motorola's total shareholder return does not exceed the median return of a defined peer group over the performance cycle.
  • 8Earned awards will be paid in shares of Motorola common stock.

Frequently Asked Questions

The primary purpose of the LRIP is to provide a long-term incentive for key executives and officers to drive superior operational performance and increase profitability over multi-year periods, thereby aligning their interests with those of shareholders.

Awards are determined based on the achievement of specific performance goals, primarily cumulative improvement in economic profit and cumulative sales growth over a defined performance cycle (which is three years for the first cycle). A participant's target award is set as a percentage of their base pay at the start of the cycle, and they can earn up to double their target award.

Yes, awards are subject to a potential partial forfeiture if Motorola's total shareholder return (TSR) for the entire performance cycle does not meet or exceed the median TSR of a defined comparator group of companies. This ensures that executive rewards are also linked to relative market performance.

Earned awards will be paid out in shares of Motorola common stock as soon as administratively practical after the close of each performance cycle. These shares will be issued under the company's existing equity incentive plans.