Motorola will pay Dan Moloney, who is returning to head up the company's Home division, a $6.5 million bonus if the company completes its expected split into two independent entities by the end of June 2011, the company disclosed in a regulatory filing Thursday.
Less than six months after Moloney left to become CEO of electronic-components manufacturer Technitrol, he will become president of Motorola Mobility Sept. 1. He resigned in February as president of Motorola's Home & Networks Mobility unit after the company announced a reorganization and a new plan to split into two separate entities by the first quarter of 2011: one that will merge mobile devices and Home (now referred to as Motorola Mobility), and the other comprising enterprise, government and public safety business units (Motorola Solutions).
Moloney's annualized base salary will be $650,000, and he will be eligible for a bonus under the company's pay-for-performance annual incentive plan, according to an 8-K report filed with the Securities and Exchange Commission.
In addition, Moloney will receive $6.5 million if Motorola completes its separation into two entities by June 30, 2011. He also will be granted a one-time cash signing bonus of $325,000 (half payable within 30 days of his start date and the other half six months later).
Moloney will receive a grant of 600,000 restricted stock units as well as options to acquire 1.2 million shares of the company's common stock with an exercise price of the closing share price on Sept. 1, 2010. The stock awards will vest in three equal annual installments in September 2011, September 2012 and September 2013, subject to his continued employment.
In the same filing, Motorola disclosed that Peter Lawson, executive vice president, general counsel and secretary, will leave Motorola following the separation of the Mobile Devices and Home businesses in the first quarter of 2011.
As Technitrol's CEO, Moloney had an initial base salary of $650,000, annual bonus targeted at 100% of base salary, awards for long-term performance periods targeted at 160% of base salary, signing payments equal to $1.2 million (though he was eligible to receive $300,000 of that), plus option grants for the purchase of 360,000 shares of Technitrol common stock.