What is the significance of Stuart C. Reed's departure for Motorola?

Stuart C. Reed was the President of the Mobile Devices business, a key segment for Motorola. His departure, especially with a detailed separation agreement, indicates a leadership change within this division, which could have implications for the company's strategic direction and performance in the mobile device market.

What are the financial terms of Stuart C. Reed's separation agreement?

The agreement involves continued base salary payments of $445,479 through December 31, 2008, a pro-rata 2008 incentive bonus, continued vesting of equity through his separation date, and a lump sum payment of $1,504,521 upon signing a supplemental release of claims. The total financial outlay for Mr. Reed's separation is substantial.

What obligations does Stuart C. Reed have post-separation?

Mr. Reed is required to cooperate in any investigations, litigation, or other actions related to matters within his knowledge. He must also continue to adhere to the non-disclosure, non-competition, and non-solicitation clauses stipulated in his prior equity award agreements with Motorola.

Are there any potential liabilities or ongoing issues associated with this departure?

The separation agreement includes a supplemental release where Mr. Reed agrees to release the company from all legal claims arising from his employment or separation, except for those that cannot be waived by law. This aims to mitigate potential future legal disputes, but the cooperation clause suggests ongoing involvement in company matters.

MSI 8-K: Leadership Changes

Summary

Motorola, Inc. (MSI) filed an 8-K on March 10, 2008, reporting the separation agreement with Stuart C. Reed, formerly the President of Mobile Devices. This filing primarily details the terms of Mr. Reed's departure, which includes continued salary payments until December 31, 2008, a pro-rata incentive plan payment for 2008, and accelerated vesting of certain equity awards through his separation date. Investors should note the financial implications of this agreement, including the total cash payout and the extended compensation period for Mr. Reed.

Key Highlights

1Stuart C. Reed, President of Mobile Devices, has entered into a separation agreement with Motorola, Inc.
2Mr. Reed will remain with the company as Executive Vice President until April 4, 2008, and his separation date is December 31, 2008.
3The agreement includes continued base salary payments through December 31, 2008, totaling $445,479.
4Mr. Reed is eligible for a pro-rata payment under the annual incentive plan for 2008.
5Equity awards granted to Mr. Reed will continue to vest through his separation date.
6Motorola will pay Mr. Reed a lump sum of $1,504,521 following his agreement to a supplemental release of claims.
7The agreement requires Mr. Reed to cooperate in investigations and continue compliance with non-disclosure, non-competition, and non-solicitation provisions.

Motorola Solutions, Inc. 8-K Report, Executive Changes (Mar 11, 2008)

Summary

Key Highlights

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