Motorola Shareholders Angered At Lack Of Progress, Executive Pay Packages
At Motorola’s annual meeting Monday night, shareholders expressed anger over the company’s slow turnaround, and said they were bothered by the executive pay packages that seemed bloated given the company’s financial problems.
Shareholder George Polous, who was quoted by both the Chicago Tribune and the Sun-Times, said Motorola
Obviously Greg Brown is above the law–Relative Performance Assessment does not apply to the Emperor in his fine new clothers. Motorola has laid off thousands upon thusands of engineers– some with more than 30 patents. Key contributors are told they are "least effective". That slap in the face is not so bad– you simply take your talent to a well managed company that isn't relentlessly looking for scapegoats to blame for management's failures. The week I was laid off, my department had hired ANOTHER manager.
The real insult is that Greg Brown remains CEO despite accomplishing nothing of substance. Any idiot can lay people off. A 7 year old could do that. Motorola needs a real CEO. Sadly the supply of capable managers is bleak.
The root cause of Motorola's Least Effective Management lies at the desk of Bob Galvin. He knew his son's abilities, yet Chris was "destined" to be CEO. Managers with the mental horsepower to one day be CEO realized there was no place for them at Motorola. The future stars sought a company where they wouldn't be competing against the ananointed Prince Chrissy. Good managers left, poor managers remained. To this day, the "yes man" mentality persists and no manager has the courage to think. The quiet innovators have been forced out while the Power Point Clowns get promoted. We have "managers" with no idea what someone's accomplishments are— these are the ones who decide who gets voted off the island. This company has had layoffs since 2001. Motorola has grown from 159,000 employes to about 51,000.
This will continue because Motorola management forgot how to invent and inspire. This is a sad day, but it brings great opportunity for the engineers who are set free from the massive beauracray of managers– when I was at Motorola, I had to report to 2 functional managers, 2 program managers and 1 technical manager. One or two were good, One became a PM after she discovered she lacked the technical skills to be aan engineer, but she could check off boxes. The other PM used to be a functional (normal) manager , but had all of his people taken away from him because he had no real people skills.
I now work for a company where I have ONE manager to report to… and she knows what she's talking about. There is life after MOT, and it's WONDERFUL.
I retired from Motorola Law Dept at the end of 2007, feeling secure in my investiments which included serious stock options that were awarded due to good performance. Now, of course, they are worthless and I am looking for work.
It is extremely sad to have seen the company nosedive like this. I couldn't have imagined such a change in management philosophies and corporate culture. I do indeed remember the gamesmanship associated with RPA.
What's up with the note about employees possibly being offered the ability to exchange their worthless options for more realistic ones?
Joe, Joe, Joe…. You worked in the law department — and with all the crap you saw, you felt secure in your MOT stock options?
>>It is extremely sad to have seen the company nosedive like this.
The company has been running on fumes since Zander came in, used the corporate jet as his private golf shuttle, slashed engineering, . . Fast Eddie once said, "Motorola engineers somehow think they are entitled to something." Well I guess he was ENTITLED to his golden parachute in exchange for destroying the damn company before he "went to spend more time with his family".
Gamesmanship is a polite word for the ass RPAe that goes on with RPA. One year I was put in the sh*t bucket– that year I spent 40 hours documenting examples of 24 behaviors because I knew that RPA didn't measure the right things– the good ole boy system rules. I needed legal proof that I did a good job, so some other poor bastard would be put in the sh*t bucket the next year. I used to go out of my way to help people. Now if I see someone is about to fail, I let them. Better them than me. I got mine, F the rest of you. It's the Motorola way.
A roll of Charmine TP is a better value than my $18 options. The company is dying. I have no sense of family here anymore. It's just a job. If MOT goes bankrupt, it would affect me as much as the local Burger King going out of business. We're treated like disposable commodities, so I don't care about the comapny anymore. It's just a job.
The phone in my pocket… an LG eNV. It's great for texting, and I'm certainly not going to have a Motorola phone in my pocket when it's my turn to get laid off to pay for Greg Brown's lack of ability.
Seeing all the crap that goes on I sold most of my stock in 2000-2001.
Its sad to see ex-employees talk with anger. Honestly, many employees that left had to leave and many more are needed to leave. There is probably so much left to clean ….
On the other hand, its funny. My perceptions, being a Non-US citizen is that most US corporations are going through the same #$"#$"# … We really laugh at how US runs their multinational companies, hiring 100 employees when you need 10. – Motorola’s problem, like many others is that they compete with Asian or non US companies who figured how to produce without fat employees doing nothing all day.
Good Luck!
– Joe, Just following up on your question about the stock option exchange program that shareholders approved.
According to a document filed with the SEC, apparently a video was sent out to all employees yesterday, featuring Brown and Jha. In a transcript, Brown said "You will soon have a one-time opportunity to voluntarily exchange certain eligible underwater stock options for fewer replacement stock options. If you do choose to exchange your options, the new ones will have a lower exercise price and a new vesting schedule. The Exchange Period â which is your window to exchange eligible stock optionsâ is expected to begin later this month. Stay tuned for more details."
In fine print, it warns "Motorola has not initiated the Option Exchange Program. If the program is commenced, Motorola will file a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission (SEC). If you are eligible to participate in the program, you should read the Tender Offer Statement and other related materials when they become available because they will contain important information about the Option Exchange Program." The documents will be available on http://www.sec.gov.
Hope that helps,
Tricia
Joe,
You might want to check your 401K balance, as the market has really rebounded. Up something like 40% off the bottom. For example, between Jan 1 2008 and May 4 2009, I'm only down 9%. Of course, since I saw MOT management at work, I have ZERO MOT in my 401K. I know all about Risk Identification and Risk Mitigation.
Risk: management is inept
Risk Mitigation: Don't give money to a bunch of self serving used car salesmen
I fired my boss last year and have never been happier.
William Steiner's (of Piermont, NY) proposal for a shareholder right to call a special meeting won 80%-support at the Motorola annual meeting. It was presented at the annual meeting by Martin Glotzer of Chicago.
>>Honestly, many employees that left had to leave and many more are needed to leave. There is probably so much left to clean ….
Ever wonder whether Motorola laid off the wrong 2/3 of the people?
>>On the other hand, its funny. My perceptions, being a Non-US citizen is that most US corporations are going through the same #$â#$â# … We really laugh at how US runs their multinational companies
Don't let the door hit you in the ass on your way out. Amazing how Motorola lays off Americans at the same time it imports H1B visa applicants.
>>Amazing how Motorola lays off Americans at the same time it imports H1B visa applicants.
I enjoyed the part where Slumdog Sam came here to take a job then teases us about how screwed up America is. That was hilarious. All we hear on the radio is yet another round of layoffs at Motorola's revolving door. Layoff Americans and hire H1's? Does the right hand know what the left hand is doing?
The stock price reflects the "ability" of senior management. These clowns aren't earning their pay.