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Financial Rewards
We share our financial success with employees through compensation packages linked to individual and business goals.
All employees participate in either an incentive plan with payouts for achievement of business results (operating earnings and free cash flow) or in a sales incentive plan. Our equity goals tie directly to company performance.
Each year we review the compensation packages we offer to ensure that they are competitive with local market practices. The company works to achieve an equitable resource distribution among stockholders, the business and employees by:
- Paying for performance, including sharing profits based on the company's success in the marketplace
- Providing competitive, market-based salaries
- Providing a comprehensive range of rewards, including base salary, incentive pay, equity grants and benefits
In 2010, we paid employees more than $330 million through our annual incentive plan and our sales incentive plans, based on the company's 2009 performance.
Our annual incentive plan aligns employee performance with annual business goals and rewards employees based on how successfully the company achieves those goals. In 2009, these goals related to operating earnings and controllable free cash flow.
The sales incentive plan aligns sales employees with both our short- and long-term business goals and rewards them when they achieve or exceed key sales goals.
Our BRAVO! award program rewards high-performing employees for specific project work, recognizing behaviors as well as business results. Managers can nominate employees outside of their teams. BRAVO! awards provide immediate and unanticipated recognition of a job well done.
We also offer awards for technical excellence including our Intellectual Property Awards that recognize technological innovation in support of business objectives.
Equity grants and stock purchase
In 2010, in line with market trends, we continued to award restricted stock units (RSU’s) to the majority of employees, unless restricted by country tax laws. Stock options are alternatively granted to vice presidents and certain other employees in line with market trends. Through our general equity grant, we awarded approximately 30 million restricted stock units to more than 29,000 employees.
Employees purchased 19 million shares of Motorola stock in 2010 through our discounted stock purchase plan, which provides employees with a 15 percent discount on stock purchases. Thirty-six percent of employees across 30 countries participated in 2010.
Retirement and saving
We help our employees save for the future through competitive retirement and saving programs. We sponsor retirement plans or retirement saving plans in the majority of the countries where we have employees.
In 2010, we reinstated company matching contributions, dollar-for-dollar on the first four percent of eligible compensation contributed to the Motorola 401(k) Plan. Every employee receives the same company match formula and vesting, regardless of whether they are a pension-eligible employee (hired before 1 January 2005) or an employee who is not pension-eligible (hired on or after 1 January 2005).
Compensation
In 2010, we continued a freeze on merit increases in many markets in response to challenging economic conditions. Merit increases continued to be offered in countries where they are legally required or a competitive necessity. Our CEO also continued to have reduced pay during 2010.