What a difference a week makes. Motorola’s (NYSE: MOT) CEO Greg Brown said last week he was conducting a formal executive search for the company’s mobile division to replace Stu Reed, who would remain at the company. Yesterday, Reed’s tenure abruptly ended when Motorola announced he was leaving the company April 4. Today, we learn of the big news — Reed’s parting gift.
Motorola will pay Reed a lump sum of $1.5 million after agreeing to release the company from all legal claims arising out of his employment. Following that, he will continue to receive his regular salary for that rest of the year, for a total amount of $445,479. The total is nearly $2 million, and that’s before you take into account his incentive plan and stock rewards that he will continue to be eligible for in 2008, as outlined in a public document filed today with the SEC.