Since last week’s announcement that Google is buying Motorola Mobility for $12.8 billion dollars most tech pundits have been repeating the fact that Google has no experience in the hardware business.
We tend to dispute this theory. They have the entire Danger team in house now including Sr.Vice President of Mobile, Andy Rubin and Danger’s OS guy Mattias Duarate. Although Rubin has never run a company the size of Motorola he definitely has experience in at least the handset design business.
One thing that hasn’t been revealed since Google’s big announcement is who will report to who. Google has repeatedly said that Motorola will function as a separate business, but they didn’t once say that Google wouldn’t have a say so in their operations. It would be silly for Google or any company to buy another and be totally “hands off”. Somewhere in the future, somehow, Libertyville is going to have to be accountable to the Google Plex. Will Motorola directly report to Larry Page? Will they report to Andy Rubin? Will Andy Rubin become Sanjay Jha’s boss?
More after the break
Although the two seem to get along great and have worked on some great things together, as far as monetary compensation goes, Sanjay Jha doesn’t need to be worried.
TFTS reports, via the Wall Street Journal, that Sanjay Jha received 3.8 million live shares of stock 2.9 million stock options when he came to Motorola from Qualcomm in 2008. Jha wanted an ownership interest in Motorola to come over from Qualcomm and the Motorola Board of Directors at the time granted that. Jha owns (or will own when his options vest) 1.8% of the company.
The 2.9 million shares of now Motorola Mobility, are valued at $62 million dollars and vest after a full 3 years with Motorola. Jha reportedly has a clause in his contract that will activate those 2.9 million shares of stock if Jha leaves after an ownership change. Meaning, if Google has their sites on another CEO or wants to let Rubin run it himself, Jha would get a pay day of $62 million.
Of course one thing that TFTS and WSJ didn’t point out is that Jha is already in his third year with Motorola. So if he stays on as Motorola Mobility CEO after the Google merger the 2.9 million stock options will still vest.