Motorola’s “Truce” With Icahn Just “Window Dressing”?
By Dianne See Morrison - Thu 24 Apr 2008 07:26 AM PST
How much does Motorola (NYSE: MOT) management hate Carl Icahn? USAToday has a lengthy interview with CEO Greg Brown over all the usual talking points. Yes, the handset division is fixable and yes, we are in the process of fixing it. Operational efficiencies have been introduced, and autonomy given back to the various handset category teams, including the marketing of the handsets to give them more control and room for innovation. The interview, though, is worth a read just for the passage on Carl Icahn. Despite the recent “truce” between Moto and Icahn, it’s resoundingly clear what a thorn Icahn has been to Motorola management and how they see their recent agreement with him as a small price to pay to get him off their backs. Plus, as Brown makes clear Motorola’s concessions to Icahn is really just “window dressing.” (Icahn among other things, agreed to a “non-disparagement” clause in the recent deal that saw two of his handpicked candidates join the company’s board. The two board members are allowed to speak to Icahn on confidential board matters, and Icahn is allowed “his say” on CEO candidates, for example.) But as Brown said, “We will select the leader for mobile devices, adding for emphasis: “Management will select.” As for Icahn’s input on a CEO, Brown said “with a frozen smile affixed on his face”, “Sure, he can certainly offer us an opinion.”
Posted in: Companies, Motorola
Tags: carl icahn





