Motorola president aspires for the throne

NEW YORK: Motorola Inc. President Mike Zafirovski said that he would like to be the next leader of the world's No. 2 cell-phone maker, which was thrown into turmoil by last week's surprise retirement of its chairman and chief executive.

"Of course I'm interested in the job," Zafirovski told Reuters after he gave a speech to the U.S.-China Business Council in New York City.

He did not address a question on whether the board has approached him about the job.

Motorola also acknowledged that design chief Tim Parsey, responsible for some of the popular, cutting-edge cell-phone designs that helped the handset business return to profits, left the company last week to join toy maker Mattel Inc.

Motorola's shares hit a new 52-week high at $12.56 at one point on Wednesday, but closed off 4 cents at $12.26 in trading on the New York Stock Exchange.

Schaumburg, Illinois-based Motorola is looking for a new leader after Christopher Galvin said last week he would leave, citing conflicts with the board over strategy. He said he will remain until a successor is named.

The question is whether the board promotes Zafirovski or hires an outsider, analysts and investors have said. There are supporters for both approaches.

Some argue Zafirovski would promote continuity and stem executive turnover while still bringing an outside approach as he only joined the company in 2000. Others want a non-Motorola executive, one with fresh ideas who is not associated with past missteps by the company.

NO PLANS TO LEAVE

Zafirovski said the board has a lot of experience and will make the right decision. When asked whether he would leave if not promoted, he responded, "I'm very happy at Motorola. I have no plans to leave Motorola at this time."

Analysts have said they expect Zafirovski to leave if he is not promoted. Some see Zafirovski as a natural successor for Galvin and fear a prolonged search or hiring of a CEO from outside could trigger a mass executive exodus.

Motorola said Parsey's exit was a coincidence and had nothing to do with Galvin's resignation, but analysts have worried uncertainty might lead to others leaving.

Parsey joined Motorola in late 1999 from Apple Computer Inc., touted as one of the outsiders bringing a new perspective. No replacement has been named. His exit was not welcomed by investors and analysts.

"That's a big blow for Motorola, said Shawn Campbell, principal with Chicago-based Campbell Asset Management, which holds Motorola preferred shares. "He was really one of the integral parts in the turnaround of the handset business."

Zafirovski, known to friends and colleagues as "Mike Z," is well-regarded for achievements such as returning Motorola's cell-phone unit to profits. But he is also perceived as someone who can bring new ideas to the company he joined from General Electric Co.

Zafirovski took on his current role as Motorola's No. 2 executive in July last year. Galvin joined the company in 1973 and became CEO in 1997. Galvin's retirement will end three generations of family control as his grandfather started the company and his father built it into a technology powerhouse.

© Reuters