Motorola gives CFO hefty exit package

Schaumburg-based Motorola said it would pay its former chief financial officer about $1.2 million after he is off the company payroll at the end of this year, according to a separation agreement filed Tuesday with the U.S. Securities and Exchange Commission.

Motorola said in March CFO David Devonshire, 61, was retiring and would be replaced by Thomas J. Meredith, 56, a partner of the Meritage Capital LP investment firm, by April 1.

An agreement with Devonshire said he "will separate from the company on Dec. 31" and Motorola would "continue to pay Mr. Devonshire his regular base pay in regular payroll installments through the separation date."

In a proxy statement, Devonshire's base salary was about $625,000 in 2006 and no pay raise was given for 2007.

In addition, he's also expected to receive $225,000 in a lump sum after Dec. 31. Once he signs a supplemental release of all legal claims involving his "separation" from Motorola, he'll receive $1,008,133 in a lump sum, the document said.

Motorola spokeswoman Jennifer Erickson said such separation agreements are standard for executives who leave or retire from the company.

Motorola, which has been laying off workers and losing market share, has been attempting to reorganize and return to profitability.