GregBrown
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Motorola's co-CEOs graciously cut own pay in cost-cutting plan
Motorola was already in the hurt locker well before this latest economic crapstorm went into overdrive, so it stands to reason that pennies are being pinched and belts are being tightened across the board out in Schaumburg. 'Course, all sorts of jobs have already been cut, so what else can you do? For starters, you can trim a few bucks off the salaries of two of the companies' more well-paid individuals -- co-CEOs Greg Brown and Sanjay Jha -- both of whom will "voluntarily" take 25 percent pay cuts in 2009 (don't worry, they'll still be able to make ends meet). Additionally, Brown will skip out on his 2008 bonus while Jha will have his bonus reduced by the total amount of Brown's forfeited bonus, and he'll take the remainder as restricted-sale stock instead of the cold, hard cash that might be a little more valuable than shares of Motorola should the company go south. For employees without seven-figure salaries, they're looking at frozen pension plans and an elimination of the company's match into retirement accounts for '09. Sign of the times, eh?[Thanks, Joe M.]
Motorola: touchscreens on the radar. Everyone: we know.
Bad news, Greg Brown of Motorola fame: when you told Crain's Chicago Business last week that the portfolio of 34 phones you intend to announce before the year's out includes devices capable of "touch and messaging," it turns out the reporter with whom you spoke already knew. In fact, Crain's specifically calls out a Touch competitor codenamed "Halo," and existence of the full-touchscreen Blaze for Verizon is no secret; while we're not exactly sure what you mean by "messaging," a healthy portion of your handsets already support SMS and MMS (as well they should), and you've got the QWERTY thing taken care of with devices like the Q9 series and the Sidekick Slide. You also mentioned that we can reasonably expect to see such electronic wizardry on shelves by Christmas, which is totally bangin' considering the financial pickle your firm is trying to work its way through at the moment. Seriously though, Greg, we didn't mean to harsh your buzz here -- just thought you might want to know your cover's blown, so you can move right past the "ooh, mysterious unreleased phone!" phase.[Image via Boy Genius Report]
Sanjay Jha in at Motorola as co-CEO, handset division chief
Motorola announced today that it would be appointing Qualcomm's former COO Sanjay Jha to head up its ailing handset division -- much to the chagrin of our own Ryan Block. Jha will also take on co-executive duties for the parent company along with current CEO Greg Brown. The news comes hot on the heels of speculation that the electronics-maker will spin off its mobile phone wing as a separate, publicly traded entity, though chatter persists that an outright sale of the division may be more economically advisable at this stage. So here's the question that begs asking: why has Moto gone the co-CEO route? Whether it's a matter of the board's confidence in Brown's abilities, or a by-product of some unseen moves, it comes off as unusual at best.
Motorola's cellphone business needs a new leader: okay, I'm in.
From the (tiny) desk of the editor:Yesterday Motorola CEO Greg Brown told board members and shareholders that, among a lot of other bad news, the company is no closer to finding someone to lead the company's rotting cellphone business (which Moto is in the middle of spinning off as its "Mobile Devices" unit). One shareholder remarked, "You're not doing your job that you're paid for. Either put up or get out." That investor, like the rest of us, has witnessed the slow-mo train wreck that's been that handset business in the days since the RAZR peaked; the things brought to light in the insider letter I published on Engadget just reinforces the fact that it's time for a change at the top. Some even suggested that I take over Motorola's handset business. I thought it over -- okay, I'll bite if Greg does.The problem with so many American technology companies today -- especially in the mobile space -- is that while they have no dearth of business acumen at the top of the pyramid, they're typically dry on vision and foresight. They spend brief periods of time innovating, and then milk a technology, brand, patent, or some combination therein for as long as they can get away with it (or in Moto's case, way longer). They play it safe and go for the easy money. Motorola's handset business has come to define this in the gadget world.
Motorola splits in two: Mobile Devices, and Broadband and Mobility Solutions
The board of directors has agreed to split Motorola into two independent, publicly-traded companies. The new entities will be called Mobile Devices and Broadband & Mobility Solutions. The Mobile Devices business will focus on the design, manufacturing, and sales of mobile handsets and accessories globally. The Broadband & Mobility Solutions business covers Moto's enterprise, government, public safety, and home and networks business. Greg Brown, Motorola's president and CEO, says the reason for the split is easy, "Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus - as well as more targeted investment opportunities for our shareholders." Right, weren't those the reasons for the Palm split? The matter is of course subject to regulatory approvals, but Motorola hopes that the transaction is complete "in 2009."P.S. We're not sure whether this is a sad or happy Moto logo day. Regardless, we went with sad until we see signs of a turnaround.[Thanks, Matt E.]
Motorola CEO Greg Brown takes personal control of phone division
The drama at Motorola just keeps coming -- apparently CEO Greg Brown has now taken direct personal control of the mobile phone division in an effort to turn it around. Of course, this move -- announced in an internal email leaked to Reuters -- comes in the wake of buyout rumors and Motorola's own admission that it might spin the handset unit off. We're not certain what steps Greg plans to take now that's he holding the reins, but we might know some people who might have some ideas.[Via RCR Wireless News]
Zander to be replaced by Brown as Motorola CEO
Motorola announced today that Ed Zander will be relinquishing the role of Chief Executive Officer in January 2008, a title he will have held for four years. Greg Brown, current President and Chief Operating Officer, will take over as CEO, while Zander will remain Chairman of the Board of Directors until at least May of next year. Zander, who came to Moto from Sun Microsystems, will perhaps best be remembered for overseeing the company during its RAZR-led handset revival.
