8-KLeadership Changes

Motorola Solutions, Inc. 8-K Report, Executive Changes (Jul 10, 2007)

Filed July 10, 2007For Securities:MSI

Summary

This 8-K filing from Motorola, Inc. (MSI) on July 9, 2007, details amendments to the compensatory arrangements for Gregory Q. Brown, President and Chief Operating Officer. These changes were approved by the Compensation and Leadership Committee of the Board of Directors on July 5, 2007, and are retroactive to earlier dates in 2007. The amendments reflect Mr. Brown's promotion on March 21, 2007, and aim to align his compensation with his increased responsibilities and to incentivize future performance. For investors, these adjustments signify a commitment to retaining and motivating key executive talent, particularly following a significant promotion. The increase in base salary and adjustments to incentive plan targets indicate the company's confidence in Mr. Brown's leadership and his expected contributions to Motorola's future performance. Investors should view these changes as a standard part of executive compensation strategy in response to role changes.

Key Highlights

  • 1Gregory Q. Brown's base salary increased from $765,000 to $950,000, effective July 1, 2007.
  • 2Mr. Brown's 2007 target award under the 2006 Motorola Incentive Plan was adjusted from 110% to 125% of eligible earnings, effective March 21, 2007.
  • 3Target awards under the 2005, 2006, and 2007 Long Range Incentive Plans (LRIP) were increased from 200% to 220% of his base pay rate, effective April 1, 2007.
  • 4These compensation adjustments are directly linked to Mr. Brown's promotion to President and Chief Operating Officer on March 21, 2007.
  • 5The Compensation and Leadership Committee approved these amendments on July 5, 2007.
  • 6The changes are intended to align compensation with increased responsibilities and to incentivize performance.

Frequently Asked Questions

Motorola Solutions (MSI) is filing this 8-K to report on the amended compensation arrangements for its President and Chief Operating Officer, Gregory Q. Brown, following his promotion earlier in the year. This is a standard disclosure requirement for significant changes in executive compensation.

Mr. Brown's base salary increased to $950,000 annually. Additionally, his target incentive awards under both the short-term 2006 Motorola Incentive Plan and the long-term LRIPs were increased. The short-term incentive target rose to 125% of eligible earnings, and the long-term incentive targets increased to 220% of his base pay rate.

The changes are effective retroactively. The increase in base salary is effective July 1, 2007. The adjustment to the 2007 incentive plan target was effective March 21, 2007, and the adjustments to the Long Range Incentive Plans were effective April 1, 2007.

For investors, these changes indicate that the company is investing in and rewarding its key executive leadership following a promotion. It signals confidence in Mr. Brown's role and his expected future contributions to the company's performance. This is a common practice in executive compensation when an executive assumes greater responsibilities.