Motorola's new chief will hit ground running
The next 90 days will be momentous - and crucial - for Motorola Inc.
Qualcomm Inc. veteran Sanjay K. Jha, who started Monday as Motorola's new co-chief executive officer and its Mobile Devices business CEO, will start work on such decisions as the new company name as it prepares to spin off into a separate entity, its workforce size, executive hires and new strategies. He aims to keep much of what CEO Greg Brown has put into motion to help boost the floundering phone business.
Jha, 45, was leaving his San Diego home Monday afternoon to start working with his new team at Motorola's Schaumburg headquarters.
"I plan to sit down first with my team and make any necessary changes to the business," Jha said during a phone interview. "There are going to be some tough calls."
Mobile Devices, which has been dragging down Motorola's bottom line in recent years, has been struggling to attain its next big hit since the ultrathin Razr phone captured worldwide attention in 2004. After shareholder pressure and many shake-ups later, the legendary Motorola said earlier this year it would split into two separate companies.
Wall Street analysts sounded pleased with Jha's selection and were optimistic that he would help revive the phone business.
"He'll need to focus on growth segments of the handset business, which he has become familiar with while he was at Qualcomm," said David Weissman, senior telecom analyst with Zacks Investment Research. "Also, he'll need to set the real growth parameters and get them in place at Motorola to help it move up in the worldwide handset market. You shouldn't rule that out. The right execution could regain Motorola's momentum."
Motorola said that Jha will be responsible for overseeing all aspects of Mobile Devices and work closely with Brown as the companies split in two. Brown intends to continue to lead the networks and government and public sector business.
Jha most recently served as chief operating officer of Qualcomm Inc., where he was responsible for research and development and other areas. He began at Qualcomm in 1994 and moved up the ladder overseas and in San Diego.
His Motorola compensation package was not immediately available but would be released in a separate filing with the U.S. Securities and Exchange Commission.
Brown praised Jha as the perfect fit after "a number of highly qualified candidates" were considered.
"He will see through the planned separation (of Mobile Devices) and take it to the next level," Brown said.
Brown also said during an interview that the name of the new Mobile Devices business could be announced in a few months.
"We're hoping to make the best integration of the brand name," Brown said.
But the actual separation likely will occur during the third quarter of 2009, Brown said. In the meantime, Jha aims to make his office at the Mobile Devices headquarters in Libertyville while he makes some "strategic" hires, like enhancing the marketing team.
"While we already have a good marketing team in Chicago, we want to strength our effort and our branding worldwide," Jha said.
Whatever those decisions are, Wall Street was pleasantly surprised and happy with Jha. Shares soared $1.01, or 12 percent, to close at $9.82 on Monday.
Analysts said Jha has "a great technical background, industry experience and business savvy."
"Jha has been a well-respected manager for Qualcomm with strong respect from the industry, customers & employees, as well as investors," said Mark McKechnie, telecom analyst with American Technology Research.
Position: Co-CEO of Motorola Inc. and CEO of Mobile Devices
Age: 45
Born and raised: India
Home: San Diego, but moving to Chicago area
Headquarters: Libertyville
Experience: Former chief operating officer of Qualcomm Inc., various leadership positions since 1994
Education: Ph.D. in electronic and electrical engineering from University of Strathclyde, Scotland. Bachelor of science degree in engineering from University of Liverpool, England.
Family: wife Fiona since 1991; sons Kieran, 10; Rohan, 7; and Devon 5