A complete copy of the Director Independence Guidelines is available on the Companys website
at https://investors.motorolasolutions.com/GovDocs.
Motorola Solutions Relationship with Entities Associated with Independent
Directors
When assessing independence, each of Ms. Pramaggiore and Mr. Scott had relationships with entities that were reviewed by the Board
under independence standards covering contributions or payments to charitable or similar not-for-profit organizations. In addition, each of Mr. Denman,
Mr. Durban, Mr. Jones, Ms. Lewent, Mr. Mondre, Ms. Pramaggiore, Mr. Scott, and Mr. Tucci had relationships with entities that were reviewed by the Board under independence standards covering payments to, or
received from, other entities. In each case, the payments or contributions were significantly less than the NYSE independence standards or the Director Independence Guidelines adopted by the Board, or did not constitute a disqualifying event under
such standards and were determined by the Board to be immaterial.
Independent Members of the Audit, Compensation and Leadership and
Governance and Nominating Committees
The Board has determined that all of the current members of the Audit Committee, the Compensation and Leadership
Committee and the Governance and Nominating Committee are independent within the meaning of the Director Independence Guidelines, applicable rules of the SEC and the NYSE listing standards for independence.
RELATED PERSON TRANSACTION POLICY AND PROCEDURES
The Company has established a written related person transaction policy and procedures (the RPT Policy) to assist it in reviewing transactions in excess of
$120,000 (Transactions) involving the Company and its subsidiaries and Related Persons (as defined below). The RPT Policy supplements our other conflict of interest policies set forth in the Principles of Conduct for Members of the
Motorola Solutions, Inc. Board of Directors, the Code of Business Conduct for employees and our other internal procedures.
For purposes of the RPT Policy, a
Related Person includes directors, director nominees and executive officers of the Company since the beginning of the Companys last fiscal year, beneficial owners of 5% or more of any class of voting securities of the Company and members of
their respective immediate families. The Governance and Nominating Committee reviews all RPT Policy matters.
The RPT Policy provides that any Transaction since the
beginning of the last fiscal year is to be promptly reported to the Companys Secretary. The Secretary will assist with gathering important information about the Transaction and present the information to the Governance and Nominating
Committee. The Governance and Nominating Committee will determine whether the Transaction is a Related Person Transaction and, if so, approve, ratify or reject the Related Person Transaction. In approving, ratifying or rejecting a Related Person
Transaction, the Governance and Nominating Committee will consider such information as it deems important to conclude if the Transaction is fair to the Company and its subsidiaries.
During 2019, Paul Czerwinski, our CEOs son-in-law, was employed by the Company.
Mr. Czerwinski was the Director of SalesStrategic Project Team and his total compensation in 2019 was approximately $209,758, which includes salary and bonus. Mr. Czerwinski also participated in the Companys general welfare
plans and received benefits comparable to those received by persons in similar positions within the Company. The Governance and Nominating Committee reviewed and pre-approved this relationship in 2019.
On September 5, 2019, the Company entered into an investment agreement with affiliates of Silver Lake (the New Investment Agreement), pursuant to which the
Company issued to Silver Lake $1 billion aggregate principal amount of 1.75% senior convertible notes due 2024 (the 2024 Notes). The New Investment Agreement provides that Silver Lake will, subject to certain conditions, continue to
have rights to representation on the Board and requires that, for so long as Silver Lake has rights to nominate a director to the Board, the Company will include a Silver Lake designee on its slate of nominees for election to the Board at each of
the Companys meetings of stockholders in which directors are to be elected and to use its reasonable efforts to cause the election of such person. The New Investment Agreement also imposes certain standstill obligations and transfer
restrictions on Silver Lake, and requires that during a specified period and subject to certain exceptions, Silver Lake will vote shares of the Companys common stock beneficially owned by it in support of Company-nominated directors and
otherwise in accordance with the recommendation of the Board. As of the date of this proxy statement, the outstanding aggregate principal amount of the 2024 Notes is $1 billion. On March 15, 2020, the Company paid its first interest payment on the
2024 Notes, of $9.24 million. The Company did not pay any interest on the 2024 Notes in 2019.
In connection with the New Investment Agreement, on September 5,
2019, the Company amended the existing investment agreement, dated as of August 4, 2015, by and among the Company and affiliates of Silver Lake (the Existing Investment Agreement) to, among other things, terminate the board nomination
rights of the applicable Silver Lake funds under the Existing Investment Agreement.
On September 5, 2019, affiliates of Silver Lake who were holders of the
Companys 2.0% senior convertible notes due 2020 (the 2020 Notes) exercised their conversion rights in respect of $600 million aggregate principal amount of the 2020 Notes. The Company settled its conversion obligation to the
applicable Silver Lake affiliates by paying cash in the aggregate amount of $600 million and delivering approximately 5.5 million shares of the Companys common stock (the Conversion Transaction), substantially all of which were
sold by such Silver Lake affiliates in an underwritten offering that closed on September 9, 2019.
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Motorola Solutions Notice of 2020 Annual Meeting of Shareholders and Proxy Statement
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