Summary
Motorola Solutions, Inc. (MSI) filed an 8-K on March 17, 2011, to report the approval of two new incentive plans by its Compensation and Leadership Committee: the Motorola Solutions Annual Incentive Plan (AIP) and the Long Range Incentive Plan (LRIP). These plans, effective January 1, 2011, and January 4, 2011, respectively, replace previous incentive programs and are designed to attract, retain, and motivate employees, particularly key executives. The AIP focuses on annual performance metrics like Free Cash Flow and Operating Earnings, while the LRIP targets long-term incentives tied to multi-year cycles, with the initial cycle (2011-2013) based on Relative Total Shareholder Return. Both plans aim to drive strong business and individual performance and improve shareholder returns.
Key Highlights
- 1Motorola Solutions established a new Annual Incentive Plan (AIP) effective January 1, 2011, replacing the 2009 plan.
- 2The AIP is designed to attract talent, retain employees, and incentivize performance based on annual business and individual objectives.
- 3Key performance metrics for the 2011 AIP include Free Cash Flow and Operating Earnings.
- 4A new Long Range Incentive Plan (LRIP) was approved, effective January 4, 2011, replacing the 2009 Long Range Incentive Plan.
- 5The LRIP aims to incentivize officers for long-term business results and shareholder returns through multi-year performance cycles.
- 6The first LRIP cycle (2011-2013) will measure performance based on Relative Total Shareholder Return against a defined comparator group.
- 7Both plans are governed by the Motorola Solutions Omnibus Incentive Plan of 2006, as amended and restated.