Motorola Inc. on Monday said it had snagged Sanjay Jha, the chief operating officer of Qualcomm Inc. and a star of the wireless industry, to head its handset division as it prepares to become an independent company.
Jha will also be co-chief executive of the parent company, sharing the responsibility with incumbent Greg Brown. Brown will take responsibility for Motorola's other two divisions.
Motorola shares rose 84 cents, or 9.5 percent, to $9.65 in morning trading.
Goldman Sachs analysts Simona Jankowski and Thomas Lee called the recruitment of Jha, who was also president of the Qualcomm division that made chips for cell phones, "a big win" for Motorola and a loss for Qualcomm.
"We believe he is very well respected both in industry and in the investor community," the analysts wrote.
Jha will also be co-chief executive of the parent company, sharing the responsibility with incumbent Greg Brown. Brown will take responsibility for Motorola's other two divisions.
Motorola shares rose 84 cents, or 9.5 percent, to $9.65 in morning trading.
Goldman Sachs analysts Simona Jankowski and Thomas Lee called the recruitment of Jha, who was also president of the Qualcomm division that made chips for cell phones, "a big win" for Motorola and a loss for Qualcomm.
"We believe he is very well respected both in industry and in the investor community," the analysts wrote.
"From Motorola's perspective, we expect this will improve the company's competitive positioning faster than if an executive of lesser stature had been attracted as CEO."
Citigroup analyst Jim Suva concurred, writing that "We are hard-pressed to imagine a better candidate than Dr. Jha." Jha, 45, has a doctorate in electronic and electrical engineering.
Qualcomm shares fell $1.88, or 3.4 percent, to $53.59.
Citigroup analyst Jim Suva concurred, writing that "We are hard-pressed to imagine a better candidate than Dr. Jha." Jha, 45, has a doctorate in electronic and electrical engineering.
Qualcomm shares fell $1.88, or 3.4 percent, to $53.59.
Motorola has entered into an employment agreement with Jha, the material terms of which are described in a Current Report on Form 8-K that the Company will file with the Securities and Exchange Commission. As part of Jha's equity compensation package, Motorola will grant certain stock options and restricted stock units pursuant to the inducement award exception to the stockholder approval requirements under the New York Stock Exchange rules as described in the Form 8-K.
Jha will receive 3.7 million restricted Motorola stock units, worth approximately $35 million at Monday's stock price, and options to buy 16.6 million shares. If the spin off of the handset division is completed, those awards would apply to the new company's stock, and Jha would receive additional stock and option awards to give him a 3 percent stake in the company.
If the spinoff does not happen before Oct. 31, 2010, Jha will get $30 million in cash.
If the spinoff does not happen before Oct. 31, 2010, Jha will get $30 million in cash.
Before as Qualcomm COO.
Dr. Sanjay Jha joined QUALCOMMin 1994. He led QCT's hardware design engineering through five generations of MSM(TM) and CSM(TM) chipsets. In 2000, Dr. Jha spearheaded the formation of a new group within QUALCOMMwhich is responsible for identifying new growth opportunities utilizing emerging core technologies such as GSM1x. Prior to joining QUALCOMM Dr. Jha held senior semiconductor design engineering positions for both Brooktree and GEC Research Labs in London. Sanjay Jha holds a Ph.D. in electrical engineering from Strathclyde University, Scotland and a bachelor's of science degree in engineering from the University of Liverpool, England. QUALCOMMIncorporated ( http://www.qualcomm.com/ ) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (CDMA) digital technology. Headquartered in San Diego, Calif., QUALCOMMis included in the S&P 500 Index and traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
Sanjay Jha was earning $6,761,730 as base pay plus available stock options before he took over as COO of Qualcomm
In 2007, his salary was $11,347,896 as base pay plus stocks up to 8 million USD with rest unexercisable.
In June of 2005, he was elected to the board of directors of the Semiconductor Industry Association (SIA). Considered to be the leading voice for the semiconductor industry, more than 85 percent of the industry in the United States is comprised of SIA members. He also serves as chairman of the Fabless Semiconductor Association, the voice of the fabless business model and a group with more than 450 corporate members.Prior to joining QUALCOMM, Dr Jha held lead design engineering roles with Brooktree Corporation, San Diego, and GEC Hirst Research Labs, London.
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