Motorola Chairman To Step Down

Galvin informed the board of directors of his decision and has agreed to stay until a successor is named, Motorola said.

The Schaumburg, Ill.-based company, the world's No. 2 cell-phone manufacturer and a top semiconductor maker, has been struggling to regain its past dominance, with a fledgling recovery stalled by sluggish industrywide demand.

The board's presiding director, John Pepper Jr., did not address any strategic differences in a statement distributed by the company. Pepper said Motorola has significantly strengthened its balance sheet and returned to profitability recently under Galvin, whom he said also has put a strong new management team in place.

"The board supports Chris Galvin's decision to retire and appreciates his commitment to a successful transition while the board begins its internal and external search for a new chairman and CEO," he said.

The leading candidate could be Mike Zafirovski, whose performance as president and chief operating officer has been praised. He took over last year when Edward Breen left to take the helm at Tyco International Ltd.

Motorola's stock surged nearly 6 percent in after-hours trading after closing the regular trading session down 4 cents to $11.09 a share on the New York Stock Exchange. It is down from a peak of more than $60 a share in 2000.

Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.