Summary
This 8-K filing from Motorola, Inc. on November 30, 2007, announces significant changes to its senior management team, most notably the planned departure of Edward J. Zander as Chief Executive Officer. Mr. Zander will step down as CEO effective December 31, 2007, but will remain Chairman of the Board until the 2008 annual meeting and serve as a Strategic Advisor to the CEO until January 2009. Investors should note that Mr. Zander will continue to receive his salary and benefits, and his unvested equity will continue to vest during this advisory period, though he will forfeit unvested equity after January 5, 2009. Additionally, he will not participate in 2008 incentive plans or receive new equity grants. Concurrently, the company has appointed Greg Brown, currently President and Chief Operating Officer, to succeed Mr. Zander as Chief Executive Officer, effective January 1, 2008. This transition signals a leadership change intended to guide the company forward. Investors will be keen to observe how Mr. Brown's leadership impacts Motorola's strategic direction and operational performance in the coming periods.
Key Highlights
- 1Edward J. Zander will step down as CEO of Motorola, Inc. effective December 31, 2007.
- 2Greg Brown, currently President and COO, will become the new CEO effective January 1, 2008.
- 3Edward J. Zander will remain Chairman of the Board until the 2008 annual meeting and serve as Strategic Advisor to the CEO until January 5, 2009.
- 4Mr. Zander will continue to receive his base salary and benefits during his advisory role, and his stock options and RSUs will continue to vest.
- 5Mr. Zander will not be eligible for 2008 incentive bonus plans or new equity grants in 2008.
- 6Approximately $5.3 million of previously earned but deferred compensation will be paid to Mr. Zander.
- 7The filing includes a press release dated November 30, 2007, detailing these management changes.