Summary
Motorola Solutions, Inc. (MSI) filed an 8-K on February 15, 2006, announcing the approval of the Motorola 2006 Incentive Plan (MIP) by its Compensation and Leadership Committee on February 12, 2006. This new plan replaces the 2005 version and is designed to motivate and retain employees by offering competitive rewards tied to both company-wide business performance and individual achievements. The MIP utilizes successive calendar year performance periods, commencing January 1, 2006, and is administered under the Motorola Omnibus Incentive Plan of 2003 or its successor. Key aspects of the MIP include performance-based awards for eligible employees, with target awards set as a percentage of eligible earnings (0-135%). Performance metrics for business goals will encompass operating earnings, operating cash flow, revenue growth, quality, and other factors determined by the Compensation Committee. All awarded incentives will be paid in cash following the close of each plan year. This plan's approval signifies a proactive approach by Motorola to align employee compensation with strategic objectives and drive strong business outcomes.
Key Highlights
- 1Approval of the Motorola 2006 Incentive Plan (MIP) by the Compensation Committee.
- 2The MIP replaces the Motorola 2005 Incentive Plan.
- 3Plan effective for performance periods beginning January 1, 2006.
- 4Aims to retain employees, attract talent, and reward strong business performance.
- 5Awards are based on a combination of business performance goals (e.g., operating earnings, revenue growth) and individual performance.
- 6Target awards can range from 0% to 135% of eligible earnings.
- 7Earned awards will be paid in cash shortly after the end of each plan year.