Motorola Ex-Operating Chief To Get $16.8 Million Separation Allowance

WASHINGTON -(Dow Jones)- Motorola Inc. (MOT) said Friday that former President and Chief Operating Officer Mike Zafirovski will receive a roughly $16.8 million separation allowance under an agreement with the telecommunications company, in addition to other benefits.

Motorola said the allowance includes a lump-sum payout of $4 million, plus accrued interest at 7% annually, which replaces retirement benefits Zafirovski forfeited to join the company.

The company said it will pay Zafirovski's separation allowance after his official separation date of July 29 and within 30 days of his submitting a general liability release.

In addition, Zafirovski will continue to receive a base salary totaling $468,000 until July 29, according to Motorola's filing with the Securities and Exchange Commission.

Motorola said it will reimburse Zafirovski up to $25,000 for attorney fees he incurred in connection with the separation agreement.

Also under the agreement, Zafirovski has until his stock options expire, or one year from July 29, whichever is earlier, to exercise all of his vested options, the company said. As of Tuesday, Zafirovski held options for about 3.86 million common shares ranging in exercise prices of $7.2745 to $27.2996, of which options for 1.76 million shares were vested, the company said.

Zafirovski's 300,000 restricted shares, granted in May 2000, will vest on July 29. Zafirovski forfeited all rights to unvested stock options for 1.34 million common shares and 965,117 shares of unvested restricted stock, the company said.

Motorola announced Zafirovski's resignation, effective Jan. 31, last month.

-By Paulette Chu, Dow Jones Newswires; 202-862-1355; paulette.chu@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 20th February 2005