Summary
This 8-K filing from Motorola, Inc. (MSI) on May 14, 2007, primarily announces the grant of performance-based stock options to CEO Edward J. Zander. The options, totaling 800,000 shares, are tied to specific stock price performance targets, requiring the stock to reach $22.00 for 300,000 options to vest and $25.00 for the remaining 500,000 options, each within a two-year window following the grant date. This structure aims to align executive compensation with shareholder value creation, incentivizing Zander to drive stock price appreciation.
Key Highlights
- 1CEO Edward J. Zander was granted 800,000 performance-based stock options.
- 2The stock options have an exercise price of $17.70 per share, reflecting the closing price on May 8, 2007.
- 3Vesting of the options is contingent on Motorola's stock price reaching $22.00 per share for 300,000 options and $25.00 per share for 500,000 options.
- 4These performance targets must be met on at least ten trading days within any thirty consecutive trading days within the two years following the grant date.
- 5The options have a ten-year expiration date (May 8, 2017), subject to certain conditions.
- 6The Compensation and Leadership Committee approved these changes with the concurrence of independent directors.
- 7Mr. Zander's employment agreement was amended to reflect these special vesting restrictions.