Motorola shareholders vent frustration

Angry shareholders of Schaumburg-based Motorola Inc. Monday cornered its co-chief executives on their multi-million-dollar salaries, the massive losses, a lack of successful products and the possible breakup of the businesses.

Motorola is like beleaguered GM. It cannot differentiate itself among all the similar products worldwide, doesn't have adequate marketing or cannot provide intuitive phones, said shareholder Walter Dembos of Woodstock.

"Motorola has lost its mojo," Dembos said.

The crowd cheered when another shareholder charged that the board of directors failed to turn around the company after posting $231 million loss in profit during the first quarter.

"The company is in the gutter," said shareholder George Polous of south suburban Burbank. "They're destroying the company."

About 250 shareholders - about half as many as during the controversial Christopher Galvin era - gathered in Rosemont Monday for their annual meeting, hoping to learn some secret strategy on how their sagging share values could regain at least its 40 percent loss since last year and return to double digits.

Co-CEOs Greg Brown and Sanjay Jha defended their salaries, saying they declined bonuses last year and took a 25 percent cut in their base salaries. Jha said it would be impossible today to get anywhere near the $104 million in total compensation reported by The Wall Street Journal and Associated Press. His stock packages are underwater and aren't vested.

"The stock price would have to triple," Jha told shareholders.

The executives also said that Motorola still had a lot of work to do on its bleeding bottom line. And they remain optimistic that the company will return to growth and profitability.

That mission still includes the possible break up of the businesses, they said and Jha was originally hired last year to head that spinoff. But that plan was put on hold while Motorola struggles through this tough economic time, they said.

Jha said they were still open to a spinoff, an acquisition or just have the business becoming successful.

"We are on the right trajectory to turn this business around," Jha said.

He believes that smartphones, such as the Google Android platforms that could roll out later this year, will be in demand, Jha said. The new phones are expected to allow users to go directly to a Web site or do social networking.

While the first quarter was a low point for Motorola, Jha said the year will show improvements and his team is heavily focused on 2010.

Brown later told reporters that the Motorola name and branding are still unsolved issues related to any company break-up.

"We need to rebalance the brand," Brown said.