Motorola (NYSE: MOT) CEO Ed Zander will step down from his post on January 1, 2008, although he will stay on as chairman until May. Succeeding him will be COO Greg Brown, who has served in the post since March. Prior to that, Brown was the CEO at Micromuse. It’s been a rocky year for Zander and Motorola, whose share price has fallen to around $16 from last year’s high near $26. The company’s flagging market share and weak financial performance had already prompted talk that Zander could be—or should be—on the way out. The stock is trading up moderately on the news. Release.

More to come.

In an 8-K filing, the company states that Zander will be staying on with the company a little longer than the release lets on:  ”Beginning January 1, 2008, Mr. Zander will continue as Strategic Advisor to the CEO, a non-officer employee, through January 5, 2009, the end of the term under Mr. Zander’s employment agreement, during which time Mr. Zander will continue to receive his regular base salary and benefits and Mr. Zander’s stock options and restricted stock units will continue to vest and be exercisable or settled in accordance with their terms. Mr. Zander will not be eligible to participate in the Company’s 2008 incentive bonus plans, will not receive any new equity grants in 2008 and will forfeit any stock options and restricted stock units that have not vested as of January 5, 2009. A total of approximately $5.3 million of previously earned but deferred compensation will be paid out in accordance with the terms of the Company’s deferred compensation plan, representing the current value of Mr. Zander’s 2004 annual bonus which was earned in 2004 but deferred as required by the terms of Mr. Zander’s employment agreement.”

• The Buck Keeps On Leaving Zander