Motorola, Inc. (NYSE:MOT) board members may face some opposition at the company's next annual meeting after Carl Icahn filed a proxy statement soliciting shareholder votes to elect him to the Motorola board of directors. In his letter to shareholders, Icahn commented that his experience tells him that Motorola's problems reflect not only operational failures, but also symptoms of a passive and reactive board. The move comes after the company's surprise fourth-quarter drop in earnings for its Mobile Devices segment and recently announced expectations for disappointing results through 2007.

Shares did not rally on the news, however, since Icahn added that buy-backs and other transactions that might have looked appropriate earlier need to take a "back seat". It was his recommendations to unlock value through such transactions that helped move the stock significantly during his past announcements. In the end, it may be best for the company to concern itself with improving its operational performance before exploring any strategic options, despite the fact that it may take some time. Meanwhile, this is definitely a stock to watch as the situation unfolds!

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