Are Motorola Solutions executives paid too much? Stockholders don't think so
Motorola Solutions CEO and Chairman Greg Brown received $13.3 million, or a 66 percent boost, in his compensation package last year. Five other top executives also saw various increases.
And judging by how stockholders have historically voted, and their recent comments to the company, they likely will vote in favor of similar compensation packages for executives during their annual meeting on May 16 in Washington, D.C.
"At the 2015 annual meeting, our stockholders approved the advisory vote on our executive compensation with 97 percent support," said a company filing with the U.S. Securities and Exchange Commission on Monday. "We believe this is in large part due to program changes over the past several years that have been maintained and created a fundamentally sound program aligned with stockholder interests."
While the communication devices company continues to streamline its global operations and cut the workforce to reign in costs, the overall executive compensation packages have historically been approved by stockholders because the top executives take such actions that ultimately bring value back to the stockholders, documents said.
CEO and Chairman Greg Brown's package, for example, reached $13.3 million in 2015, compared to about $8 million in 2014. Yet it returned to the same level of about $12.6 million in 2013, the filing said.
The annual proxy, an extensive document sent to all the stockholders for the annual meeting, explained the formulas used to determine the compensation packages and whether certain targets and milestones were met.
Company spokeswoman Ellen Wichman declined further comment about the SEC filing or the compensation packages.
Stockholders have watched as the company continues to reduce the workforce. Motorola Solutions said in October it would cut about 200 workers from its Chicago and Schaumburg offices.
The company has about 14,000 employees worldwide. After the headquarters move to Chicago, the company will have about 1,600 employees in Schaumburg, 1,100 employees in Chicago and 200 in Elgin, Wichman said.
The company announced in September that it would move its global headquarters to Chicago after being in Schaumburg for about 50 years. The company says the move is expected to attract more talent to help boost the company's products and services, and therefore, its profits.
And despite Motorola Solutions' ongoing struggles to boost those profits, Wall Street remains steadfast.
Analysts have been buoyed by the company's plan to reduce its operational expense by an additional $120 million during 2016. This follows reductions of $200 million in each of the past two years, Cowen and Company analyst Paul Silverstein said in a report on Feb. 23.
BMO Capital Partners analyst Tim Long said in a report on Feb. 23 that he remains concerned about the core business but still liked what he saw.
"We continue to be impressed by management's ability to take cost out of the business," Long said.