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Mar. 6, 2007

In a year that saw 2006 profits down over 20 percent compared to the previous year, Motorola CEO Ed Zander earned a total of $13.2 million in compensation.

The amount includes $1.5 million in salary, $9.5 million in stock options and $2.2 million in other forms of compensation.

Overall, Motorola's sales increased 22 percent to $42.9 billion, but profits sank to $3.67 billion from $4.59 billion in 2005.

One reason profits were lower is because Motorola cut prices on its most popular models, in an effort to gain market share.

While this was successful (Motorola's market share rose from 14 percent to 22 percent worldwide) its net effect on the bottom line is evident.

In a proxy statement, Motorola said Zander’s compensation was based on its pay-for-performance program and that it had exceeded several targets throughout the year.

Portions of his earnings came from perks, such as personal use of company aircraft and car and driver.

Zander's base salary has not changed since he was hired in 2004.

In other developments, Motorola announced that its board will not endorse a nomination of billionaire financier Carl Icahn to join the board.

Icahn had declared his intent to join Motorola’s board back in January 2007. He had hoped to convince its leadership to buy back shares of the company, which have fallen 27 percent since October 2006.

Motorola is asking shareholders to nominate or vote on board members of their choosing, rather than sign any proxy cards from Icahn or his associates.

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Source: Wireless Week