Eleven days after Sanjay Jha was named the head of Motorola Inc.’s mobile devices and home businesses, Dan Moloney has resigned.
Moloney was the president of the Home & Networks Mobility unit and, from 2007 until about two weeks ago, he reported to Greg Brown, Motorola’s other “co-CEO.” But the new reorganization changed everything and Moloney found himself accountable to Jha.
Now Moloney is leaving Motorola to become head of Technitrol Inc., an electronics components-maker in Philadelphia. He’ll assume the role at the end of next month.
Jha will take over Moloney’s role and no replacement for Moloney will be sought.
Moloney worked at Motorola for 10 years. He joined when the Illinois-based giant bought General Instrument, where he worked as a manager.
Meanwhile, Motorola is moving ahead with its planned split – some time in 2011’s first quarter, the company intends to separate the mobile devices and home businesses into one company and the enterprise mobility and networks groups into another. The transactions will occur through a tax-free stock dividend of shares in the new companies to shareholders. According to Motorola, that means both business will be “well-capitalized.” For the enterprise unit, that should mean an investment-grade rating, Motorola said, meaning that’s the entity that’ll hold Motorola’s public market debt when the separation happens.
The Motorola brand will remain intact. The mobile devices/home business will own the brand and license it royalty-free to its frère. There are no other details when it comes to brand, capital structure or other matters as of yet.
And Jha has made sure he’s safe no matter what. Last week, he sealed a deal with his employer that, among other concessions, gives him $38 million if the split does not happen by June 30, 2011. And if the spinoff takes place on time, Jha will receive a large number of shares. Either way, his pocketbook won’t be hurting.