Tuesday, October 07, 2003

More on Mot

This caught my eye this morning since I don't believe it:

Galvin insists semi spin off not tied to his departure

Analysts and others have been telling Mot to spin off this division for years, especially after it fell out of the top 10 last year. Two weeks after Galvin announces his departure, they announce the spin-off. That isn't a coincidence. It isn't until near the bottom of the article that we see what's going on:

Galvin declined to say whether he would seek a position with a separate Motorola SPS company.

They are going to parachute him into the new corporation. This has happened a number of times with other spinoffs with CEOs keeping some sort of title in the parent and working at the spinoff and collecting big salaries for both (see: Dwight Decker and the companies of Rockwell, Conexant, MindSpeed, Pictos, etc.)

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