2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 88 MOTOROLA SOLUTIONS, INC. EXECUTIVE COMPENSATION 2017CEOTotalDirectCompensation 2017performancereflectedoursustainedeffortsoverthepastseveralyearstopositionMotorolaSolutionsforlong-termfinancialsuccess.2017 performancewasimprovedfrom2016withstrongbusinessperformance,revenuegrowthalongwithrecordbacklog.Weendedtheyearmeeting ouroperatingplanandthisresultedinbusinessperformanceattargetfundingunderourExecutiveOfficerShortTermIncentivePlan.Inaddition, theBoardrecognizedMr.Brown’sstrongindividualperformanceleadingthecompanythroughanotheroutstandingyearofoperationaland financialperformanceandcompletingasignificantnumberofstrategicacquisitions,byprovidinghimanabovetargetpayout. Ourthree-yearperformancethatendedDecember31,2017continuedtoshowincreasedreturnstoourstockholdersrelativetoourcomparator group.Thisthree-yearperformanceresultedinanabovetargetpayoutunderthe2015-2017cycleofourLongRangeIncentivePlan.Givenour improvedperformancein2017,Mr.Brown’stotaldirectcompensationfor2017was$3.2milliongreaterthanin2016. BaseSalary $1,250,000 ExecutiveOfficerShortTermIncentive $2,625,000 TotalShort-termCashCompensation $3,875,000 Long-termIncentiveCashPayment(2015-2017LongRangeIncentivePlan) $4,687,500 Long-termIncentives(POsandMSUsgrantdatefairvalue) $6,499,975 TotalCompensation(excludingperquisites) $15,062,475 GOVERNANCE HIGHLIGHTS Aspartofourcommitmenttohighethicalstandards,ourBoardfollowssoundgovernancepractices.Thesepracticesaredescribedinmoredetail intheCorporateGovernancesectionofourwebsite. Independence • Eightoutofourninenomineesareindependent • OurCEOistheonlymanagementdirector • AllBoardcommitteesthatmetduring2017arecomprisedofindependentdirectors IndependentLead Director • WehaveaLeadIndependentDirector,selectedbytheindependentdirectors • TheLeadIndependentDirectorservesasliaisonbetweenmanagementandtheothernon-management directors ExecutiveSessions • Theindependentdirectorsregularlymeetinprivatewithoutmanagement • TheLeadIndependentDirectorpresidesattheseexecutivesessions Accountability • Alldirectorsstandforelectionannually • Inuncontestedelections,directorsmustbeelectedbyamajorityofvotescast • Holdersof20%ormoreofourcommonstockhavetheabilitytorequestaspecialmeetingofstockholders BoardOversightof RiskManagement • OurBoardreviewstheCompany’sapproachtoidentifyingandassessingrisks • TheAuditCommitteereviewstheriskexposureoftheCompany,includingourinternalauditassessment ofriskandourmaterialriskdisclosures,andmeetsperiodicallywithseniormanagementtodiscussour riskassessmentandriskmanagementpolicies • TheCompensationandLeadershipCommitteereviewstheannualcompensationriskassessmentand retainsanindependentcompensationconsultant • TheGovernanceandNominatingCommitteereviewsallrelatedpartytransactions • Wehavearecoupmentor“clawback”policytorecovercertainexecutivepay • WehaveapolicyprohibitingtradinginderivativesecuritiesoftheCompany,andnoNEOsorDirectors havepledgedanyCompanystock StockOwnership Requirements • Ourindependentdirectorsmustholdourcommonstockwithavalueequaltoatleastfivetimesthe annualretainer,or$500,000,withinfiveyearsofjoiningtheBoard • DirectorsarerequiredtoholdallsharespaidorawardedbytheCompanyuntiltheirterminationofservice • OurCEOmustholdourcommonstockwithavalueequaltosixtimeshisannualsalarywithinfiveyearsof attainingtheposition • Membersofthemanagementexecutivecommitteemustholdourcommonstockwithavalueequalto threetimestheirannualsalarywithinfiveyearsofjoiningthegroup (iii) Total of 03 pages in section PERFORMANCE AND ACCOMPLISHMENTS TOTALSHAREHOLDERRETURN 179%TSRSINCE2011 1 11%TSR2017 146%TSRSINCE2011 1 22%TSR2017 98%TSRSINCE2011 1 27%TSR2017 25.9 -3.6 2.1 0 54.3 9.1 18.4 90.7 29.8 56.8 93.3 47.4 78.2 101.7 30.7 80.7 149.9 55.4 102.3 178.5 97.6 146.4 MOTOROLASOLUTIONS S&P 500 S&PCOMMUNICATIONS INDEX 2011 2012 2013 2014 2015 2016 2017 2017HIGHLIGHTS • Grewsales6%to$6.4billion • Grewsalesineveryregion • Grewbacklogtorecordlevelof$9.6billion, up$1.2billionor15%comparedtotheprior year • Generated$1.3billionofoperatingcash flow,up$181million • CapitalAllocationof$483millionin sharerepurchases,$307millionof dividendspaid,and$298millionof managedservicesandsoftware acquisitions • Increasedquarterlydividendby11%to $0.52pershare • Launched85newproducts • Added410patents,bringingourpatent portfoliotoapproximately4,400 • RankedNo.3inourcategoryon Fortune’s“World’sMostAdmired Companies”list • NamedtoForbes“Just100”listof America’sbestcorporatecitizens PERFORMANCE HIGHLIGHTS SINCE 2011 179% TOTAL SHAREHOLDER RETURN 1 53% REDUCTION IN SHARE COUNT $14.1 BILLION INCAPITALRETURN 1. BasedonthesplitadjustedclosingpriceofMSIcommonstockonDecember31,2010andtheclosingpriceofMSIcommonstockonDecember31,2017,illustratingthegrowth overaninitialinvestmentonDecember31,2010,includingthepaymentofdividends. (ii) PROXY STATEMENT SUMMARY ThissummaryhighlightsinformationcontainedelsewhereinthisProxyStatement.Thissummarydoesnotcontainallofthe informationthatyoushouldconsider.YoushouldreadtheentireProxyStatementcarefullybeforevoting.Formorecomplete informationregardingtheCompany’s2017performance,pleasereviewtheCompany’sAnnualReportonForm10-Kfortheyear endedDecember31,2017. 2018 ANNUAL MEETING OF STOCKHOLDERS • DateandTime: May14,2018,6:00p.m.EDT • Location: CapitalHilton,100116 th StreetNW,Washington,DC20036 • RecordDate: March16,2018 • Voting: Stockholdersasofthecloseofbusinessontherecorddateareentitledtovote.Eachshareofcommonstockisentitledtoone voteforeachdirectornomineeandonevoteforeachoftheotherproposalstobevotedon. • MeetingWebcast(audioonly): www.motorolasolutions.com/investors • CommonStockOutstandingasofRecordDate: 161,695,469 • StockSymbol: MSI • Registrar&TransferAgent: EQShareownerServices ITEMS TO BE VOTED ON OurBoard’sRecommendation ElectionofDirectors(page4) FOR AdvisoryApprovaloftheCompany’sExecutiveCompensation(page19) FOR RatificationofIndependentRegisteredPublicAccountingFirm(page54) FOR StockholderProposalonEthicalRecruitmentinGlobalSupplyChains(page58) AGAINST StockholderProposalonIndependentDirectorwithHumanRightsExpertise(page60) AGAINST StockholderProposalonLobbyingDisclosure(page62) AGAINST DIRECTOR NOMINEES BoardCommittees (asofMarch21,2018) Name Director Since Indep. Other PublicCo. Boards Position Audit Comp. Gov.& Nom. Exec. GregoryQ.Brown 2007 1 ChairmanandCEO, MotorolaSolutions,Inc. KennethD.Denman 2017 3 VenturePartner, SwayVentures EgonP.Durban 2015 3 ManagingPartnerandManaging DirectorofSilverLake ClaytonM.Jones 2015 2 FormerChairman,CEOandPresident, RockwellCollins,Inc. JudyC.Lewent 2011 2 FormerEVPandCFO, Merck&Co.,Inc. GregoryK.Mondre 2015 2 ManagingPartnerandManaging DirectorofSilverLake AnneR.Pramaggiore 2013 1 PresidentandCEO, CommonwealthEdison SamuelC.Scott 1993 2 FormerChairman,PresidentandCEO, CornProductsInternational JosephM.Tucci 2017 2 Co-ChairmanandCo-CEOGTY TechnologyHoldings,Inc. =ChairofCommittee (i) NASDAQ, INC. Proxy Summary 15 Proxy Summary Voting Matters and Board Recommendations This summary highlights information contained elsewhere in this proxy statement. It does not contain all of the information that you should consider in voting your shares.You should read the entire proxy statement, aswell as our2017 annual report on Form10-K, carefully before voting. Proposal NasdaqBoard’s Recommendation Proposal 1. Election ofDirectors (Page37) TheBoard andNominating&Governance Committee believe that the ten director nominees possess the skills, experience and diversity to advisemanagement on the company’s long-term strategy, aswell as tomonitor performance and provide effective oversight. FOR EACHNOMINEE Proposal2.Approval of theCompany’sExecutiveCompensation onanAdvisoryBasis (Page53) The company seeks a non-binding advisory vote to approve the compensation of itsNEOs as described in the CompensationDiscussion andAnalysis section beginning on page54. The Board values stockholders’ opinions and theManagement Compensation Committeewill take into account the outcome of the advisory votewhen considering future executive compensation decisions. FOR Proposal3.Approval of the Equity Plan, asAmended andRestated (Page91) TheBoard andManagementCompensationCommitteebelieve that theEquityPlan is an essential componentof the company’s robust,performance-based executive compensationprogram and therefore ask stockholders to approve an increase in thenumberof shares availableunder the plan, an extensionof the termof theplan andother technical and administrative revisions. FOR Proposal 4.Ratification of theAppointment of Ernst&Young LLP asOur Independent Registered PublicAccounting Firm for the FiscalYear EndingDecember31,2018 (Page 109) TheBoard andAudit Committee believe that the retention of Ernst&Young LLP to serve as the company’s independent auditor for2018 is in the best interests of the company and its stockholders. FOR Proposal5.Stockholder Proposal –ShareholderRight toAct byWrittenConsent (Page 111) As in2015 and2017, theBoard believes that the stockholder proposal to allow stockholder action bywritten consent is inappropriate, unnecessary and not in the best interests ofNasdaq and its stockholders. AGAINST