Description of Compensation Arrangements for 2005

EX-10.42 8 c91705exv10w42.txt DESCRIPTION OF COMPENSATION ARRANGEMENTS FOR 2005 EXHIBIT 10.42 MOTOROLA, INC. DESCRIPTION OF COMPENSATORY ARRANGEMENTS FOR 2005 APPLICABLE TO NAMED EXECUTIVE OFFICERS Set forth below are compensatory arrangements as of March 3, 2005, applicable to the Company's current executive officers who will be named in the summary compensation table of the Company's proxy statement for the 2005 annual meeting of stockholders ("Named Executive Officers"). These arrangements are in addition to the various other compensatory plans, contracts and arrangements in which the Company's Named Executive Officers participate and which are filed as exhibits to this report on Form 10-K for the year ended December 31, 2004. ANNUAL BASE PAY - --------------- - ----------------------------------------------------------------------------- Edward J. Zander $1,500,000 Chairman of the Board and Chief Executive Officer - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- David W. Devonshire $625,000 Executive Vice President and Chief Financial Officer - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- Gregory Q. Brown $600,000 Executive Vice President - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- Adrian R. Nemcek $600,000 Executive Vice President - ----------------------------------------------------------------------------- PERQUISITES - ----------- Executive Financial Planning Program: The plan provides for up to $15,000 in the first year and $10,000 per year in subsequent years for financial planning, tax planning and preparation and estate planning Executive Health Coaching: This benefit will be introduced in 2005 and will provide Motorola executives with personal health coaching recommendations and encouragement to reach exercise, weight management, nutrition, smoking cessation and stress management goals. SEVERANCE ARRANGEMENTS - ---------------------- David W. Devonshire: If Mr. Devonshire is terminated without cause, Motorola agrees to pay him severance equal to one year's base salary plus his targeted incentive payout.