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Motorola Executives Endure Criticism at Annual Shareholder Meeting

5:30 am on May 7, 2008 | Category: Business, Cell Phones, Corporate

Motorola shareholders harshly criticized executives and board members at the company’s annual general meeting on Monday, claiming that the company lacks drive and direction.

“The board did a terrible job,” one investor said. “It’s appalling and you should be ashamed.”

Motorola’s revenue dropped 33% in 2007, and suffered a full-year operating loss of $1.2 billion, compared to a profit of $2.7 billion in 2006.

Chief Executive Officer, Greg Brown, admitted that 2007 was “a punishing year” for Motorola, but insisted that the company is now on the right track with its promise to divide its struggling handset business from its other, more profitable divisions.

“Along with other large shareholders, we’re aligned with a sense of urgency to maximize shareholder value, with a consumer- and product-led recovery, and creating two independent businesses that will unlock value,” Brown said.

But many investors remained unconvinced, claiming that without clearer direction, a split would simply re-frame the problem, rather than improving matters.

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