More details on Sanjay Jha’s compensation around the Motorola (NYSE: MOT) break-up plan announced on February 11. And this will be sure to annoy those shareholders complaining about the vendor’s exec pay packages: the Co-CEO of the mobile devices and home division could end up with an even bigger payout than before.
According to the 8-K filed yesterday, Jha’s “contingent payment” — that is, the payout he gets if the deal doesn’t go through — has been bumped up to $38 million from its earlier sum of $30 million. The terms of Jha’s equity award — which he would get if the separation goes ahead — have also been changed: he will be entitled to a percentage between 1.8 percent and 3 percent, based on the market capitalization of the new mobile devices/homes business. Originally his percentage had been a flat 3 percent.
The 3 percent figure will now only apply if the market cap of the new company is equal to or less than $6 billion, according to the documents.
The equity award would be allocated on a 90 percent/10 percent split between stock options and restricted stock. The filing also makes clear that Jha cannot receive both the contingent payment and equity award.
Jha will be entitled to the $38 million if the deal doesn’t complete by June 30, 2011. Originally, the deadline had been October 31, 2010.