Mobile phone maker Motorola's India-born chief Sanjay Jha's compensation has been increased to $38 million if the plans to split the company into two does not occur by 2011.
Motorola has modified the terms of compensation for co-chief executive Jha, including a bigger paycheck, if the restructuring falls through.
It has also changed how much he could receive in stock compensation if the company succeeds in its separation, a Motorola filing with the Securities and Exchange Commission said on Wednesday.
Jha would be eligible to receive a payment of $38 million, up from $30 million, if Motorola does not go ahead with its plan to separate the mobile phone and set-top box business into a separate entity by June 30, 2011.
However, if the company splits and other conditions are met, Motorola said Jha would get an equity award ranging 1.8-3 per cent of the new entity's outstanding shares, depending on its market value after the split.
Jha was earlier entitled to get a fixed three per cent award after the split as per his previous agreement.
The filing also said Jha would be eligible to receive a long-term incentive plan award. Motorola also said it extended its employment agreement with Jha to June 2011 from October this year.
Image: Sanjay Jha
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