Motorola unease meant CEO pay freeze
The wireless technology giant says it canceled Chairman Christopher Galvin's bonus and froze his pay last year because of the company's "unsatisfactory financial performance."
Wireless technology giant Motorola said Friday it canceled Chairman Christopher Galvin's bonus and frozen his pay last year because of the company's "unsatisfactory financial performance."Its annual shareholder proxy filed with the U.S. Securities and Exchange Commission, showed that Motorola paid Galvin an unchanged $1.3 million salary in 2001, but he did not ring up the $1.25 million bonus awarded in 2000.
But Galvin more than made up for the lack of a bonus by cashing in $2.73 million in options, according to the filing.
None of the other executives, including Chief Operating Officer Robert Growney, Executive Vice President Edward Breen, CFO Carl Koenemann and Executive Vice President Keith Bane, received bonuses in 2001. But none of them made any money from the sale of options in 2001.
In 2001 Motorola, the No. 2 maker of wireless telephones after Finland's Nokia, posted its first loss before one-time items in 71 years because of the slowdown in customer spending that hit the telecommunications industry.
Galvin was granted options for 900,000 Motorola shares, worth up to $20.7 million if the stock appreciates at 10 percent a year until the options expire in 2011. The options carry an exercise price of $14.41.
Motorola's stock fell almost 26 percent last year, declining less than its peer group in the Standard & Poor's Communications Equipment index, which slid 72 percent.
The company's shares closed up 3 percent at $14.20 Thursday on the New York Stock Exchange. The markets are closed Friday for the Good Friday holiday.
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