Motorola boss gets $66M golden parachute in Google purchase

Posted:
in General Discussion edited January 2014
Google?s agreement to purchase Motorola Mobility includes a promise of $65.7 million in golden parachute compensation for Sanjay Jha, the chief executive officer of the Android device maker.



A golden parachute is an agreement between a company and an employee, usually a top executive, that specifies the benefits a person would receive in the event of termination of employment. The practice provides reassurance that a company will retain key executives after a merger is completed.



According to a recent filing with the Securities and Exchange Commission, Jha's potential payout totals $13.2 million in cash and $52.4 million in equity compensation. Roughly $35 million in similar incentives has also been promised to four other top executives of Motorola Mobility.



Jha served as co-CEO of Motorola from August 2008 until he became head of Motorola Mobility, the former Mobile Devices division of Motorola, in January 2011. Under his supervision, Motorola adopted Android as its primary smartphone operating system in late 2009.







Starting with the original Droid smartphone, Motorola contributed to the growing popularity of Google?s mobile OS in the U.S. and has since launched a variety of Android smartphones and the Xoom tablet to challenge Apple's iPhone and iPad.



In August, Google announced plans to acquire Motorola Mobility for $12.5 billion, with the deal expected to close by the end of the year or in early 2012, assuming regulatory approval. SEC Filings have since revealed that Google outbid itself by $3 billion in the course of one day as it rushed to close the deal.



Google's acquisition of Motorola would give it some 17,000 issued and 7,500 filed patents, which could be used by the search giant to defend its Android ecosystem but also to target competitors, including Apple, in future mobile-related patent cases.



Currently engaged in legal battles with Android device makers like Samsung, HTC and Motorola, Apple has filed motions to stay for two Motorola lawsuits, arguing that the company lacks the right to enforce its patents until the Google acquisition is finalized.
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Comments

  • bikertwinbikertwin Posts: 544member
    What on earth did that man do to deserve $66 million?



    Please, tell me.
  • john.bjohn.b Posts: 2,611member
    If I'm reading it right, he got paid $65.7 million, and he doesn't have to work with Andy Rubin?



    Best. Day. Evar.
  • maguromaguro Posts: 65member
    Quote:
    Originally Posted by AppleInsider View Post


    arguing that the company lacks has the right to enforce its patents



    Third typo of the day- which is it, lacks the right or has the right?
  • shrikeshrike Posts: 494member
    Quote:
    Originally Posted by bikertwin View Post


    What on earth did that man do to deserve $66 million?



    Please, tell me.



    He got Google to buy Motorola for 2x their value, presuming the deal is approved by the feds. In other words, shareholders who stuck it out with MMI's sinking stock were rewarded with a profit (if they choose to sell). And shareholders who bought over the summer have doubled their investment with the sale to Google.



    Believe it or not, a shareholder actually is suing MMI because he thinks Jha didn't get enough. Sounds like he bought MMI a couple of years ago when the stock was near Google-bought levels. There's always someone.
  • halhikerhalhiker Posts: 110member
    I'm sure the GOP Presidential candidates all think he needs a tax cut.
  • replicantreplicant Posts: 121member
    Glad to see Google spending its money wisely

    One day the cash cow will run out of milk and I guess then they will have to find another way to finance their world domination plan.



    As for Jha... well, he got his payday for jumping on the android bandwagon early I guess.
  • bsimpsenbsimpsen Posts: 171member
    The parachute applies if Jha is ousted. If they keep him as head of MMI, the parachute does not deploy. It would be a conflict of interest for Jha to negotiate a sale that results in a personal windfall.
  • anantksundaramanantksundaram Posts: 16,758member
    Quote:
    Originally Posted by bikertwin View Post


    What on earth did that man do to deserve $66 million?



    Please, tell me.



    If Google outbid itself by $3000M in a day for MMI (see previous AI story) and Jha had something to do with that, $66M is a rounding error for shareholders.
  • dluxdlux Posts: 666member
    Quote:

    A golden parachute is an agreement between a company and an employee, usually a top executive, that specifies the benefits a person would receive in the event of termination of employment. The practice provides reassurance that a company will retain key executives after a merger is completed.



    Actually, a golden parachute pretty much ensures that said key executive will look for any excuse to bail out. What keeps them in place is colloquially called 'golden handcuffs', or a retention bonus.
  • melgrossmelgross Posts: 28,568member, moderator
    This whole thing is pretty amazing. Not the money Jha would get, but the entire buy-out. Almost none of those patents have anything to do with Google's business, much less specifically, Android. Most of the few that do are under FRAND. The rest are considered to be weak.



    It hasn't stopped Apple from going after Motorola, and it certainly hasn't stopped Microsoft.



    There's no one else Google has to worry about, and so if it hasn't stopped these two, then what's the purpose?
  • island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by anantksundaram View Post


    If Google outbid itself by $3000M in a day for MMI (see previous AI story) and Jha had something to do with that, $66M is a rounding error for shareholders.



    Actually, Jha wrote Google asking if he could have another $40M for himself and somebody misread his writing and thought he was asking for $40 a share... and the rest is history.
  • nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by halhiker View Post


    I'm sure the GOP Presidential candidates all think he needs a tax cut.



    Damn, got pipped to(at?) the post by you.
  • nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by melgross View Post


    This whole thing is pretty amazing. Not the money Jha would get, but the entire buy-out. Almost none of those patents have anything to do with Google's business, much less specifically, Android. Most of the few that do are under FRAND. The rest are considered to be weak.



    It hasn't stopped Apple from going after Motorola, and it certainly hasn't stopped Microsoft.



    There's no one else Google has to worry about, and so if it hasn't stopped these two, then what's the purpose?



    It's like getting shinier armour for Google. The armour's crap, but at least it's shiny!
  • oc4theooc4theo Posts: 294member
    He sure made out well for himself in this deal.



    More like Platinum than gold, if you ask me.
  • dluxdlux Posts: 666member
    Quote:
    Originally Posted by OC4Theo View Post


    He sure made out well for himself in this deal.



    More like Platinum than gold, if you ask me.



    Pfft. 66 Mil is nowhere near the Big Leagues these days. Trophy wives won't even look at you for under a hundred.
  • splash-reversesplash-reverse Posts: 648member
    Soon it may be revealed the loser of all this is Google. Looking forward to my 'dont be evil' plan.
  • bestkeptsecretbestkeptsecret Posts: 1,475member
    Quote:
    Originally Posted by Dlux View Post


    Pfft. 66 Mil is nowhere near the Big Leagues these days. Trophy wives won't even look at you for under a hundred.



    I agree. I too felt that $60m was too little an amount when you are talking about a $12b deal.
  • nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by BestKeptSecret View Post


    I agree. I too felt that $60m was too little an amount when you are talking about a $12b deal.



    Yeah, forget about the people making $60 a day or unemployed, sucks for them they weren't all able to sell a dead-end company to a desperate one.
  • bikertwinbikertwin Posts: 544member
    Quote:
    Originally Posted by nvidia2008 View Post


    Yeah, forget about the people making $60 a day or unemployed, sucks for them they weren't all able to sell a dead-end company to a desperate one.



    Exactly. Google is desperate and would pay anything.



    And this is all part of his job description. That's why he gets paid 10x or 100x more than you and me.



    I mean if an engineer improves a process and saves a company $1 million/year, does he get anything other than a certificate of appreciation in his cubicle? It's part of his job description is the excuse they always give.
  • al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by bikertwin View Post


    What on earth did that man do to deserve $66 million?



    Please, tell me.



    he got google to pay $12.5 billion for a company with no profits and a huge pension obligation
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