Mobile phone maker Motorola's India-born chief Sanjay Jha's compensation has been increased to $38 million dollars if the plans to split the company into two does not occur by 2011.
Motorola has modified the terms of compensation for co-Chief Executive Jha, including a bigger paycheck, if the restructuring falls through.
It has also changed how much he could receive in stock compensation if the company succeeds in its separation, a Motorola filing with the Securities and Exchange Commission said today.
Jha would be eligible to receive a payment of $38 million, up from $30 million, if Motorola does not go ahead with its plan to separate the mobile phone and set-top box business into a separate entity by June 30, 2011.
However, if the company splits and other conditions are met, Motorola said Jha would get an equity award ranging 1.8-3 per cent of the new entity's outstanding shares, depending on its market value after the split.
Jha was earlier entitled to get a fixed three per cent award after the split as per his previous agreement.
The filing also said Jha would be eligible to receive a long-term incentive plan award.
Motorola also said it extended its employment agreement with Jha to June 2011 from October this year.
Motorola had last week announced that it would split into two independent, publicly traded companies by the first quarter of 2011.
After the "planned separation", one company will include the mobile devices and home businesses, while the other would include Motorola's enterprise mobility solutions and networks businesses.
While Jha would serve as CEO of the mobile devices and home businesses effective immediately, the networks and enterprise mobility divisions would come under co-CEO Gregory Brown.