Sanjay Jha the big CEO in 2008
The current controversy over executive salaries is understandable from the public’s perspective. How can companies that are already receiving a cash advance of taxpayer dollars to keep them out of bankruptcy justify paying exorbitant salaries to the top executives that drove the companies into the ground in the first place?
Well, the public now has another target for their rage. Greg Burns reports for the Chicago Tribune that Motorola co-CEO Sanjay Jha has been identified by the Wall Street Journal as “the biggest pay-getter at any public company in 2008.”
$104 million in annual compensation
But wait. According to the Journal, most of Jha’s $104 million annual compensation comes from stock options. Unfortunately for him and Motorola investors, shares of the company are almost worthless (about $4.51 per share).
Jha was lured away from Qualcomm, a job that was safer. Now his compensation hinges upon whether he can “spin off Motorola’s sinking handset division and make it work,” writes Burns. Investors and analysts are doubtful. But what is clear is that recent regulations have made figuring out exactly what executives are being paid difficult. But since the market is down, current prognosis is less rosy than $104 million.
But Jha will be paid, trust me
Even if things don’t improve, Jha is still going to collect a $30 million payment. He won’t receive it until October 31, 2010, however. That’s how long he has to boost up sales of Motorola’s phone units.
“There’s a lot of anger about the excesses of executive comp, and I’m not saying it’s not excessive, but it’s not a totally accurate picture,” said California State University economist Sung Won Sohn.
Ya think? I think laid off workers should have a fair stake in that tidy sum. Executive compensation on this level is out of hand, regardless of who was bailed out. But be sure to buy Motorola first. Then Mr. Jha will have so much more to spread around…
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That is a heck of a payday, indeed. I don’t know if he can look forward to a huge success. I know a lot of people, and this is myself included, that have or had Motorola Razors, and not too many people were incredibly satisfied with them. Oh, granted, they are thin. Thin on battery reliability more like!