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Motorola boss gets $66M golden parachute in Google purchase

post #1 of 38
Thread Starter 
Googles 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 Googles 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.
post #2 of 38
What on earth did that man do to deserve $66 million?

Please, tell me.
post #3 of 38
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.

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post #4 of 38
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?
post #5 of 38
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.
post #6 of 38
I'm sure the GOP Presidential candidates all think he needs a tax cut.
post #7 of 38
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.
post #8 of 38
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.
post #9 of 38
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.
post #10 of 38
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.
post #11 of 38
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?
post #12 of 38
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.
Hmmmmmm...
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Hmmmmmm...
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post #13 of 38
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.
post #14 of 38
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!
post #15 of 38
He sure made out well for himself in this deal.

More like Platinum than gold, if you ask me.
post #16 of 38
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.
post #17 of 38
Soon it may be revealed the loser of all this is Google. Looking forward to my 'dont be evil' plan.
post #18 of 38
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.
post #19 of 38
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.
post #20 of 38
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.
post #21 of 38
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
post #22 of 38
Quote:
Originally Posted by bikertwin View Post

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.

Agreed. This is why there really isn't any point in anything anymore. Nothing of value a person does matters.
post #23 of 38
The rich get richer...
post #24 of 38
Unemployment is probably going to hit at least 15% next year as the Republican Congress cuts funding and jobs.

These golden parachutes make me sick. Creepy rich people get richer while we struggle to pay our mortgage. And of course the parachute will probably be exempt from any income taxes.
post #25 of 38
Quote:
Originally Posted by bikertwin View Post

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.

The engineer probably gets laid off so the company can replace him with a foreign national with an H-1B visa. Half the salary and twice the workload. Time for another round of executive bonuses!
post #26 of 38
Quote:
Originally Posted by bsimpsen View Post

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.

It is already a conflict of interest, whether the parachute deploys or not. "Sell us the company and we guarantee you, if you lose your job it won't hurt one bit." That sounds like a bribe to me.
post #27 of 38
Things that are in violation of management's fiduciary duty to stockholders and should be banned:

1. Golden parachutes. Nothing more than a bribe to get management to agree to a takeover.

2. Management buyouts. If there is value in the company that can be unlocked, management's duty is to unlock it for the stockholders, not to purchase the company them unlock it for themselves.

3. Chairman of the Board is the CEO. Fox guarding the henhouse.
post #28 of 38
Quote:
Originally Posted by Conrail View Post

The engineer probably gets laid off so the company can replace him with a foreign national with an H-1B visa. Half the salary and twice the workload. Time for another round of executive bonuses!

See, now you're thinking like a true executive!

Now you just have to work on the "It's not a reduction of workforce - it's an enlargement of the community talent pool" doublespeak. That's where an MBA helps.
post #29 of 38
Quote:
Originally Posted by al_bundy View Post

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

Do you know that for a fact? If Google is buying the assets, then they would not be getting the pension obligations.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #30 of 38
Quote:
Originally Posted by tundraboy View Post

Things that are in violation of management's fiduciary duty to stockholders and should be banned:

1. Golden parachutes. Nothing more than a bribe to get management to agree to a takeover.

2. Management buyouts. If there is value in the company that can be unlocked, management's duty is to unlock it for the stockholders, not to purchase the company them unlock it for themselves.

3. Chairman of the Board is the CEO. Fox guarding the henhouse.

In theory, a business entity should be allowed to compensate it's people in any manner that doesn't break the law. The problem is twofold: those who hold the power are often sociopathic Type-A personalities who lack ethics (and that's part of the reason they got to those positions in the first place), and the laws (at least in the US) have far too many loopholes to ensure fairness. Then add to that another layer of injustice where well-funded corporations further bastardize those laws, and you have a vicious cycle that ultimately leads to financial calamity and political wars over regulation.

There are certainly decent corporations contributing to the economy, but you rarely hear about those. It's the high-profile ones like the big tech firms that get the most press. Sometimes they overreach and public outcry leads to their downfall, but that doesn't happen often enough.
post #31 of 38
Quote:
Originally Posted by jragosta View Post

Do you know that for a fact? If Google is buying the assets, then they would not be getting the pension obligations.

And who else do you think takes on MMI's liabilities ... the tooth fairy?

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post #32 of 38
Quote:
Originally Posted by AppleInsider View Post

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.

This part of the article really isn't relevant except to mention Apple and thus qualify the article for inclusion in Apple Insider. As long as the authors dropped this turd in the toilet, let's get out the plunger and clean it up.

What Apple wants is the court to put a hold on the patent lawsuits filed against them by Motorola, at least until Google's acquisition is finalized. Why? What if the court issued a temporary injunction against the sale of Apple products within its jurisdiction that allegedly violated Motorola's patents? (Note the German court's injunction against Samsung products in the patent suit brought by Apple.) Then what if the acquisition process drags out or ultimately fails for some reason? The patent dispute then becomes entangled in the acquisition, and Apple suffers for no reason connected to the patent cases themselves.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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post #33 of 38
Quote:
Originally Posted by Kibitzer View Post

And who else do you think takes on MMI's liabilities ... the tooth fairy?

Tooth Fairy, LLC.
post #34 of 38
Quote:
Originally Posted by jragosta View Post

Do you know that for a fact? If Google is buying the assets, then they would not be getting the pension obligations.

As mentioned before... this is a stock sale, not an asset sale... that's what $40 a share means... everything, lock, stock and barrel.
Hmmmmmm...
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post #35 of 38
Where can I get one of those Cheshire Cat grins?
post #36 of 38
Quote:
Originally Posted by frankinden View Post

Where can I get one of those Cheshire Cat grins?

Is that a polite way of saying "shit-eating"?
post #37 of 38
Quote:
Originally Posted by bikertwin View Post

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

Please, tell me.

He tricked Google into buying a turd sandwich for $12.5 billion.

"Apple should pull the plug on the iPhone."

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post #38 of 38
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.

Jha, right!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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