Business

Motorola's Reed gets buyout

Posted March 11, 2008 11:00 pm

By Anna Marie Kukec

The former head of Motorola Inc.'s mobile phone business has walked away with about $2 million in salary and other payments, according to a federal filing Tuesday.

Stu Reed, who left the company last Friday, will receive his regular base salary of $445,479 for the rest of the year. In addition, equity previously granted to Reed will continue to vest through the end of the year. Motorola also will pay Reed $1.5 million in a lump sum with the agreement to release the company from all legal claims.

"This was part of the arrangement Motorola made with Mr. Reed in connection with his departure," spokeswoman Jennifer Erickson said.

Motorola's new Chief Executive Greg Brown removed Reed as head of the struggling mobile devices business and has been looking for a buyer for the unit.

IBM veteran Reed joined Motorola in 2004 as senior vice president of the newly formed Integrated Supply Chain sector, which later cut thousands of jobs and closed plants worldwide.

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