After grabbing headlines with a sign-on bonus of more than $100 million, Motorola Inc. co-CEO Sanjay Jha has settled down to a more pedestrian $3.77 million in annual pay.
Motorola revealed Friday in a regulatory filing that Jha received a 2009 salary of $905,769 in 2009, a bonus of $1.2 million and restricted stock worth $1.334 million. The bonus was guaranteed by his employment contract.
Jha and co-CEO Greg Brown both declined their bonuses for 2008, in recognition of the company's struggles and job cuts, but took them for 2009. They voluntarily cut their 2009 salaries by 25 percent.
Motorola recruited Jha in 2008 as part of a plan to turn around the money-losing cell phone division. The first tangible fruits of his tenure turned up in Verizon Wireless and T-Mobile USA stores last fall: a family of phones, including the Droid, that run Google Inc.'s Android software.
Jha's total 2008 pay package was $104.4 million, making him the second-highest paid executive in the country that year, according to calculations by The Associated Press. Only Chesapeake Energy CEO Aubrey McClendon earned more, at $112.5 million.
However, nearly all of Jha's 2008 pay was in options, and for him to profit from them, Motorola's stock price has to be above $9.82. The stock started diving soon after he was hired, going below $3 last March. The stock staged a strong recovery last summer, fueled in part by hopes for the new phones, and came tantalizingly close to the exercise price last September. The stock has since retreated, and closed Friday at $7.01.
Brown, who heads the part of the company that makes things like police radios and cable set-top boxes, earned $8.46 million in 2009, down from $24.2 million in 2008, a figure that was also inflated by stock and option awards.
His salary was the same as Jha's, and his bonus was $836,931. He received $6.4 million in stock and options.
Brown received $359,708 in perks, including personal use of the company aircraft, use of a car and driver, and a home alarm system. Jha received $323,366 for similar perks.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.
Motorola cut nearly 11,000 jobs last year, or 17 percent of the work force, as it hurried to slash costs. It lost $51 million, or 5 cents per share, on revenue of $22 billion. That compares to a 2008 loss of $4.2 billion, or $1.87 per share, as it took big charges to account for the falling value of the cell phone business. Revenue in 2008 was $30.1 billion.
