Motorola 2009–2011 Long Range Incentive Plan (LRIP) Performance Cycle Terms
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Summary
This agreement outlines Motorola's Long Range Incentive Plan (LRIP) for the 2009–2011 performance cycle. The plan rewards participants based on Motorola's total shareholder return (TSR) over a three-year period compared to a specified group of peer companies. Payouts are determined by Motorola's ranking among these peers, with higher ranks earning higher payout factors. The agreement defines how TSR is calculated and lists the peer companies used for comparison. The plan covers the period from January 1, 2009, to December 31, 2011.
EX-10.4 5 c50170exv10w4.htm EX-10.4 EX-10.4
Exhibit 10.4
Motorola Long Range Incentive Plan (LRIP) of 2009
2009-2011 LRIP Performance Cycle | ||||||||
Performance Period | Three years from January 1, 2009-December 31, 2011 | |||||||
Performance Measure | Relative Total Shareholder Return (TSR) | |||||||
TSR Defined as: | ||||||||
Ending stock price | ||||||||
Daily average during the final three months of the Performance Cycle | ||||||||
+ Value of reinvested dividends | ||||||||
= Total ending value | ||||||||
Beginning stock price | ||||||||
Daily average during the three months preceding the Performance Cycle | ||||||||
= Total value created | ||||||||
÷ Beginning share price | ||||||||
Daily average during the three months preceding the Performance Cycle | ||||||||
= Total shareholder return | ||||||||
Peer Group | Alcatel-Lucent (ALU) | LM Ericsson Telephone Co. (ERIC) | ||||||
Apple Inc. (AAPL) | Microsoft Corporation (MSFT) | |||||||
Cisco Systems, Inc. (CSCO) | Nokia Corp. (NOK) | |||||||
Dell Inc. (DELL) | Nortel Networks Corp. (NRTLQ.PK) | |||||||
EMC Corporation (EMC) | Oracle Corp. (ORCL) | |||||||
Hewlett-Packard Company (HPQ) | QUALCOMM Inc. (QCOM) | |||||||
Intel Corporation (INTC) | Sun Microsystems Inc. (JAVA) | |||||||
International Business Machines Corp. (IBM) | Texas Instruments Inc. (TXN) |
Payout Scale | TSR Rank | Payout Factor | ||||||
1 | 200 | % | ||||||
2 | 200 | % | ||||||
3 | 190 | % | ||||||
4 | 170 | % | ||||||
5 | 150 | % | ||||||
6 | 140 | % | ||||||
7 | 125 | % | ||||||
8 | 110 | % | ||||||
9 | 100 | % | ||||||
10 | 75 | % | ||||||
11 | 50 | % | ||||||
12 | 25 | % | ||||||
13 | 0 | % | ||||||
14 | 0 | % | ||||||
15 | 0 | % | ||||||
16 | 0 | % | ||||||
17 | 0 | % |