Summary
This Form 8-K filing by Motorola, Inc. on April 1, 2008, primarily details the approval and key terms of the "2008 Motorola Incentive Plan" (2008 MIP) by the Compensation and Leadership Committee. This new plan replaces the 2006 plan and aims to retain and attract talent by offering competitive rewards tied to business performance. Awards are based on a percentage of eligible earnings, with actual payouts determined by company-wide metrics like operating earnings, operating cash flow, and gross margin, alongside individual performance. Additionally, the filing outlines a specific incentive award for CEO Gregory Q. Brown for the 2008 calendar year, focusing on the performance of the Mobile Devices business, specifically gross margin from new product introductions and operating earnings. Amendments to the "Motorola Long Range Incentive Plan of 2006" were also approved, notably adding the company's common stock price as a performance measure and clarifying CEO discretion regarding awards for covered employees.
Key Highlights
- 1Motorola approved the 2008 Motorola Incentive Plan (2008 MIP), effective January 1, 2008, replacing the 2006 plan.
- 2The 2008 MIP is designed to retain and attract talent through competitive rewards linked to business performance.
- 3Target awards under the 2008 MIP range from 0% to 220% of a participant's eligible earnings.
- 4Performance metrics for the 2008 MIP include operating earnings, operating cash flow, and gross margin, alongside individual performance.
- 5CEO Gregory Q. Brown received a specific 2008 incentive award tied to Mobile Devices business performance (new product gross margin and operating earnings).
- 6The 2006 Long Range Incentive Plan was amended to include common stock price as a performance measure.
- 7Amendments to the 2006 LRIP also clarified CEO discretion over award adjustments for certain employees.