Motorola Solutions, Inc. (MSI, Financial) has announced significant changes to its executive compensation structure, aimed at reinforcing leadership stability and enhancing shareholder value. On October 8, 2024, the company's Board of Directors approved an increase in the target annual long-term incentive award for Gregory Q. Brown, Chairman and CEO, from $22.865 million to $27.365 million. This decision, recommended by the Compensation and Leadership Committee and supported by an independent compensation consultant, underscores the Board's confidence in Mr. Brown's strategic leadership and his ability to generate substantial shareholder returns.
The enhanced incentive package for Mr. Brown is entirely performance-based and equity-based, comprising performance stock options, market stock units, and performance stock units. This move aligns with the company's long-term strategy and commitment to shareholder interests.
In addition to the CEO's incentive adjustment, Motorola Solutions has also approved special retention grants for key senior executives. Effective mid-November 2024, Jason J. Winkler, Executive Vice President and Chief Financial Officer; John P. Molloy, Executive Vice President and Chief Operating Officer; and Mahesh Saptharishi, Executive Vice President and Chief Technology Officer, will each receive a $12 million target value in performance stock units (PSUs). These Retention Awards are designed to reward, retain, and further incentivize the company's senior executive operational leadership team.
The Retention Awards are structured similarly to the 2024 regular annual awards, with a three-year performance period and a maximum potential payout of 200% of the target award. However, they differ in that they do not include special vesting provisions upon retirement or adjustments for mid-cycle promotions.
These strategic compensation adjustments reflect Motorola Solutions' commitment to maintaining a strong leadership team capable of executing its long-term vision and enhancing shareholder value.
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